Evolving technology has ignited a spark in everyone’s mind to improve the experience of cross-border payments. When customers try to transfer money cross-border, they end up encountering costs, delays, and frictions. In short, international transactions have been traditionally under the veil of mystery with no track record and no transparency.
There was a lack of common standards and an end-to-end payment tracking system which made international transfer challenging enough to handle. Moreover, the manual intervention in the cross-border payments, payment processing inefficiencies, and regulatory jurisdictions were causing headaches for customers and banks’ costs.
What’s the solution to handle cross-border payment? How to protect, shape, and enhance the cross-border future? Every customer demands to know the exact information, especially when to receive and when it has been identified. Customers expect to access money any time, any place, and anywhere. The need to solve cross-border payment has become a necessity!
Here we go; SWIFT GPI is at the forefront to provide a fast, transparent and trackable cross-border payment experience. Let’s deep dive into this concept to unveil the mystery of international payment!
Cross-border payments are renowned for the challenging trackable record. With the introduction of SWIFT GPI, now the demands of today can be met with certainty. To be more precise, it is carefully innovating for tomorrow’s requirements.
As the new normal for international payments, SWIFT GPI (Global Payments Innovation) is sufficing the compelling demands of banks and corporates such as transparency and speed by reaching end beneficiaries in minutes or even seconds.
It’s an instant, ubiquitous and accessible platform to encourage better client relationships. With SWIFT GPI, banks and corporates now embrace early settlement time to attract more business connections to route a higher volume of payments.
Benefits of SWIFT GPI
Wherever you are, SWIFT GPI is delivering the tangible results as promised. Though there are many obvious reasons to bid on SWIFT GPI, below shared are some of the following that actually focuses on the customers’ queries to resolve the cross-border payment pain points.
After all, SWIFT GPI delivers immediate benefits to banks and their customers; most importantly, it is not dependent on a single underlying technology. It offers an impactful payment solution that can be deployed quickly for tomorrow’s use!
- Faster Payments
Payments are now carried out on the same day the payment process is initiated. This ubiquitous platform is streamlining the global connectivity that underpins the global finance industry. Now, half of the GPI payments are made within 30 minutes, and 40% in under 5 minutes without any hassle.
In short, this new technological development is helping banks and corporates to strengthen commercial relationships to achieve higher standards. The best feature of the SWIFT GPI is its speed and accuracy.
Retrospectively, it was quite challenging to place the value to make the payment for the cross-border transaction. However, with the introduction of the SWIFT GPI network, the banks can now offer customers the full transparency of the breakdown of all the costs incurred in the process, including processing fees and exchange rate costs.
Customers can also know the timing of the transaction. So, through the commitment and concentrated efforts- facilitated by the SWIFT GPI, both banks and corporates can enjoy the cross-border payments experience. This new way is just paved for a more certain, frictionless, and sustainable cross-border payments road ahead.
Fortunately, the UETR (Unique End-to-End Transaction Reference) invention is enabling customers to check the fund’s location in real-time. Got confused about how? Whenever customers transfer the funds to the beneficiary bank, they avail a unique reference number associated with each payment process. This information is shared with all the banks involved in the transaction.
This unique reference number allows customers and banks to trace the payments end-to-end and in real-time, making the cross-border payments fully traceable and visible to solve any issues more quickly and effectively.
SWIFT GPI is truly discovered to meet the wide-ranging requirements proposed by cross-border payments. It just alleviates the client’s pain points, including the challenges of doing international payments because of foreign exchange controls, restrictions on import and export processes, and the need to have consistent data records.
Now, the payment process data remain unaltered throughout the whole process, which in turn facilitates the reconciliation of the payments by the recipients. Thus, keeping track of the payments or reconciling the invoices, and finally, many settlement processes would not be delayed.
New Trends in API Connectivity
The GPI connector has become quite successful API connectivity offerings since its launch for Financial institutions and corporates. It has been estimated that in 2019, almost one billion API calls were made.
However, the GPI connector is about to be replaced by two different API connectivity ways because of certain essential limitations. The full range of API services possible on SWIFT can’t be accessed through the GPI connector. Also, the solution lacks the scalability essential for the future growth of the API.
Therefore, SWIFT developed new API connectivity trends for all GPI members: the SWIFT Microgateway and SWIFT Software Developer Kit (SDK). These new API trends are now offering cost-effective and flexible access to all future and current API solutions.
Since the GPI connector will be decommissioned in November 2021, financial institutions and corporates are advised to be ready for both the SDK and MicroGateway support GPI APIs v2, v3, and v4, other products and future versions of APIs in line with the product roadmap. Let’s read about the new generation of API connection in detail:
Coding has become easier for developers because of the availability of SWIFT SDK. This new solution handles the lower-level plumbing, which involves error handling, authorization, authentication, and signing. SDK supports APIs for accessing inbound payments, pre-validation, KYC Registry, SWIFTRef, customer credit transfer, instant payments, stop and recall, case resolution, cover payments. Moreover, it supports financial institution transfer, GPI for corporates, pay and trace, SWIFTRef Automated Download, Banking Analytics, and Compliance Analytics services.
SWIFT Microgateway is a software product that enables developers to leverage benefits from an ample number of API-based services possible on SWIFT. Firms can embrace benefits like firms can configure, manage and monitor all the API calls they make on the platform by just deploying the Microgateway. It has been expected that Microgateway will enable all the third-party vendors to start offering services to a unique community of more than 11,000 financial institutions located in over 200 countries.
Rather than getting stuck in coding, now, financial institutions and third-party vendors can just set up and deploy the Microgateway once and select which services you want to use.
How ECS Fin can be your Best Partner?
Regarding operational efficiency, the increased transparency that GPI brings has a positive impact on the industry. ECS Fin’s IMS SWIFT GPI is acting as a standalone module or as one of the modules within IMS Payments – a PREMIER platform certified by SWIFT that offers solutions for the real-time cross-border payment hub. We can act as a pioneer to help you understand and deploy your solutions with the latest trends of SWIFT GPI: SDK and Microgateway.
With the IMS SWIFT GPI, financial institutions can improve the three characteristics that play an important role in cross-border payments: speed, transparency, and predictability of payments. In fact, IMS SWIFT GPI is offering a single centralized and standardized view across all their banking partners.
What’s more? An end-to-end payment tracker’s functionality helps banks track international payments in real-time to resolve the traceability query much more effectively. Banks and corporates can also route the international payment transfer queries based on selection criteria of early settlement time or to process through standard settlement time and save on transaction fees.
SWIFT GPI is revamping the cross-border payment industry from the ground up. Banks and corporates must embrace this new transformation by working on the GPI network today. This new facility is making the payment much more quickly with full traceability and transparency on accompanying costs.
When it comes to possible queries by customers, it boosts operating efficiency. Through IMS SWIFT GPI, banks can benefit by connecting all the parties in the payment value chain in an end-to-end manner and deliver value to their customers with the same-day availability of funds. Let us be your ally!