The Society for Worldwide Interbank Financial Telecommunication (SWIFT), a financial messaging services provider, announced today that 25 percent of its cross-border payment traffic is being sent over the company’s recently launched global  Payments  Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonly the basis of exchange involves fiat currency or legal tender, be it in the form of cash, credit or bank transfers, debit, or checks. While typically associated with cash transfers, payments can also be made in anything of perceived value, be it stock or bartering – though this is far more limited today than it has been in the past.The Largest Players in the Payments IndustryFor most individuals, the payments industry is dominated currently by card companies such as Visa or Mastercard, which facilitate the use of credit or debit expenditures. More recently, this industry has seen the rise of Peer-to-Peer (P2P) payments services, which have gained tremendous traction in Europe, the United States, and Asia, among other continents.One of the biggest parameters for payments is timing, which looms as a crucial element for execution. By this metric, consumer demand incentivizes technology that prioritizes the fastest payment execution.This can help explain the preference for debit and credit payments overtaking check or money orders, which in previous decades were much more commonly utilized. A multi-billion-dollar industry, the payments space has seen some of the most innovation and advances in recent years as companies look to push contactless technology with faster execution times. Read this Term innovation (GPI).

SWIFT GPI was launched in the middle of 2017. Its goal was to increase the speed, transparency, and tracking of  Cross-Border Payments  Cross-Border Payments Cross-border payments refer to transactions involving individuals, companies, banks or settlement institutions operating in at least two different countries.The concept of cross-border payment is not new however, despite its rise in importance in the 21st century.New technology and the growth of blockchain has brought the term cross-border payment into our daily conversations.Cross-border payments are an essential term that refers to any transaction involving private individuals’ companies, banks, or financial institutions operating in multiple countries. We simply call these International Payments. “Cross-border payments” are recognized as using newer technologies such as digital assets or blockchain technology. Today’s e-commerce world operates around the world. Payments, remittances, transactions, and purchases all often require money exchanged and multiple currencies across borders. Many different scenarios need to be accounted for when a merchant needs to deal with international payments because each country is governed by its own set of rules and laws. The demand for cross-border payments is so high that steps are being made to improve cross-border payments as a whole.Blockchain Disrupting Cross-Border PaymentsThere are currently issues associated with the cross-border payments however, leading to a greater reliance on new technologies. For example, in the correspondent banking system, both the originating bank and the foreign bank retain their own ledgers, from which they make reconciliations and settlements.This leads to a lack of transparency leading to blockchain entering the conversation. As a universal ledger in a distributed network, blockchain allows the sender and the receiver, as nodes in the network, to have a complete copy of the ledger. Moreover, other nodes in the network must verify any modifications through a consensus mechanism. Cross-border payments refer to transactions involving individuals, companies, banks or settlement institutions operating in at least two different countries.The concept of cross-border payment is not new however, despite its rise in importance in the 21st century.New technology and the growth of blockchain has brought the term cross-border payment into our daily conversations.Cross-border payments are an essential term that refers to any transaction involving private individuals’ companies, banks, or financial institutions operating in multiple countries. We simply call these International Payments. “Cross-border payments” are recognized as using newer technologies such as digital assets or blockchain technology. Today’s e-commerce world operates around the world. Payments, remittances, transactions, and purchases all often require money exchanged and multiple currencies across borders. Many different scenarios need to be accounted for when a merchant needs to deal with international payments because each country is governed by its own set of rules and laws. The demand for cross-border payments is so high that steps are being made to improve cross-border payments as a whole.Blockchain Disrupting Cross-Border PaymentsThere are currently issues associated with the cross-border payments however, leading to a greater reliance on new technologies. For example, in the correspondent banking system, both the originating bank and the foreign bank retain their own ledgers, from which they make reconciliations and settlements.This leads to a lack of transparency leading to blockchain entering the conversation. As a universal ledger in a distributed network, blockchain allows the sender and the receiver, as nodes in the network, to have a complete copy of the ledger. Moreover, other nodes in the network must verify any modifications through a consensus mechanism. Read this Term, areas of business that have traditionally been time-consuming and easily susceptible to error. The company wants to set GPI payments as company standard by 2020.

Since going live last year, 165 banks have signed up to the service - representing 80 percent of SWIFT’s cross-border payments traffic. Of those 165 banks, 49 are counted amongst the world’s top 50 banking institutions.

Swifter payments for a changing world

The rapid rate of adoption by these financial institutions is a tribute to both their demand for a fast-paced cross-border payments system and SWIFT’s ability to provide one. The company noted that 50 percent of payments made using the service are completed and credited to the end beneficiary’s account in less than 30 minutes.

SWIFT’s launching of the GPI comes at a time of rapid change in the payments industry. With numerous start-ups muscling into an area of business that has been slow to adapt new technology that could dramatically improve services.

Commenting on the success of the product thus far, Harry Newman, SWIFT’s Head of Banking said: “It’s clear that the global payments industry needs to evolve in order to provide customers with a modern service that meets their expectations. As a truly global, fast, secure and transparent cross-border service, GPI is delivering real and tangible change, and the increase in its use is testament to the huge benefits it delivers to end customers.”