SWIFT announced Thursday (May 24) that 25 percent of all SWIFT cross-border payment traffic is being sent over the global payments innovation — or gpi — in the 15 months since the service was rolled out.
In a press release, SWIFT said gpi has been the biggest change to come to cross-border payments in the past thirty years and enhances the customer experience because speed, transparency, and end-to-end tracking are included in the service. SWIFT said gpi is set to be the standard for all cross-border payments made on the SWIFT network by the end of 2020. It noted that more than 165 banks, accounting for 80 percent of SWIFT cross-border payment traffic — and including 49 of the world's largest 50 banks — have signed up for the service. As it stands to date, there have been 50 million gpi payments processed, with hundreds of thousands of payments sent each day across 350 country corridors in more than 100 different currencies. In corridors such as USA-China, gpi accounts for greater than 40 percent of the payment traffic, said SWIFT in the press release.
“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,” said Harry Newman, SWIFT’s head of banking, in the press release. “With more than 25% of traffic and over $100bn a day now flowing securely over gpi, it is rapidly becoming the new cross-border standard.”
According to SWIFT, the strong demand for SWIFT gpi is being driven by the demand for speedier, more transparent cross-border payment services. With close to 50 percent of gpi payments completed and credited to the receiving account in fewer than 30 minutes and often within seconds, it has been appealing to banks. SWIFT noted that in March it announced the extension of gpi Tracker to cover all payment instructions that are sent across the network. That enables gpi banks to track all SWIFT payment instructions at all times. That gives them full visibility over the payment activity, noted SWIFT. “As more and more banks see the dramatic enhancements and efficiencies provided by gpi, we’re seeing its adoption grow every day. The rapid delivery of a payment message in less than 30 minutes and the transparency provided by the tracker gives banks’ end customers greater visibility and a substantially enhanced service, allowing goods orders and shipments to be commenced much sooner,” Newman noted in the press release.