SWIFT gpi (Global Payments Innovation) is a service that enhances the speed, transparency, and end-to-end tracking of cross-border payments made through the SWIFT network.
Understanding SWIFT gpi
SWIFT gpi was developed by SWIFT to address the challenges associated with traditional cross-border payments, such as lack of transparency regarding fees and the time it takes for funds to reach the beneficiary. It essentially modernizes the SWIFT system for international payments.
Key Features of SWIFT gpi:
- Faster Payments: SWIFT gpi significantly reduces the time it takes for cross-border payments to be completed, often within minutes or hours.
- Increased Transparency: Beneficiaries and originating banks can track the status of their payments in real-time. They can also see exactly what fees are being charged along the payment chain.
- End-to-End Tracking: Provides comprehensive tracking of payment transactions, allowing for clear visibility throughout the payment process.
- Payment Confirmation: Confirmation is provided to the sending bank when the beneficiary bank credits the end beneficiary’s account.
- Improved Data Quality: Encourages the use of more structured and accurate data in payment messages.
How SWIFT gpi Works:
- Payment Initiation: The originating bank initiates a payment using SWIFT gpi standards.
- gpi Tracker: The payment is assigned a unique transaction reference (UTR) that allows all parties involved to track its progress.
- Transparency and Tracking: Each bank in the payment chain updates the gpi Tracker with information about the payment's status and any fees applied.
- Faster Processing: Banks that are part of the SWIFT gpi network prioritize gpi payments, leading to faster processing times.
- Confirmation: Once the beneficiary bank credits the end beneficiary’s account, a confirmation message is sent back to the originating bank through the gpi Tracker.
Benefits of SWIFT gpi:
- Enhanced Customer Experience: Faster and more transparent payments improve customer satisfaction.
- Reduced Costs: By providing greater visibility into fees, SWIFT gpi helps to reduce unexpected costs.
- Improved Efficiency: Streamlined processes and faster processing times increase overall efficiency.
- Better Risk Management: Real-time tracking and increased transparency enhance risk management capabilities.
In summary, SWIFT gpi is a significant improvement over traditional SWIFT payments, offering faster, more transparent, and trackable cross-border payment services.
