SWIFT gpi: driving a payments revolution
GPI payments are fast: 92% of cross-border payments are credited to the beneficiary’s account within 24 hours and 40% within just 30 minutes. But for payments between mature markets without currency controls, compliance stops or legacy systems, performance is comparable to many domestic payment systems: for example, 72% of payments from the UK to the US arrive within 30 minutes and 95% within six hours.
Interestingly, the UETR data also reveals that there are fewer intermediaries in a payments chain than expected and that the number of agents has little or no impact on transaction speed. Speed is largely driven by other factors, such as regulatory barriers, capital controls, legacy systems and time zones.
GPI payments are transparent and predictable: gpi’s unique end-to-end transaction tracking and a service level convention that commits banks to tight processing timeframes, full visibility of fees and no loss of data, is delivering a fully transparent and predictable experience. Already, 56% of gpi payments by value are confirmed to the beneficiary, allowing for improved reconciliation and cash management. Credit confirmation will become mandatory for all MT 103 payments from November this year. Indeed, payment transparency and confirmation are making gpi a method of choice for domestic and lower-value consumer payments. Currently, one fifth of gpi payments are direct domestic payments, while low-value payments are the fastest growing market segment for gpi.
GPI is the foundation for fully-orchestrated payments processing: The new platform and transaction management model will be developed over the next two years. It will use many of the building blocks already in place, including SWIFT’s API capability, Customer Security Programme and of course, gpi. It will draw on rich, mutualised services to provide pre-validation of data, transaction screening, data analytics and much more. The result: fully-orchestrated payments processing delivering instant, frictionless and transparent flows, account-to-account, anywhere in the world.