Twenty-five per cent of all SWIFT cross border payment traffic is being sent over the global payments innovation (gpi) just 15 months after the service launched, said SWIFT, a leading provider of secure financial messaging services.

SWIFT gpi, the most transformational change in cross-border payments in 30 years, dramatically enhances the customer experience by increasing the speed, transparency and end-to-end tracking capability of payments. It is set to be the standard for all cross-border payments made on the SWIFT network by the end of 2020.

SWIFT gpi has seen rapid widespread adoption since going live in 2017. More than 165 banks, representing 80 per cent of SWIFT’s cross-border payments traffic, and including 49 of the world's top 50 banks,  have signed up to the service.

To date, 50 million gpi payments have been processed, with hundreds of thousands of payments sent daily across 350 country corridors, in more than 100 currencies. In major corridors, such as USA-China, gpi already accounts for more than 40 per cent of payment traffic.

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. With more than 25 per cent of traffic and over $100bn a day now flowing securely over gpi, it is rapidly becoming the new cross-border standard.”

The strong growth in the adoption and use of SWIFT gpi has been driven by demand for a faster, more transparent cross-border payments service. Already, nearly 50 per cent of gpi payments are completed and credited to end beneficiaries’ accounts in less than 30 minutes, many within seconds.

In March, SWIFT announced the extension of its gpi Tracker to cover all payment instructions sent across the network, enabling gpi banks to track all their SWIFT payment instructions at all times, and giving them full visibility over all their payments activity. As a direct result of the speed and transparency afforded by gpi, banks using the service have seen a significant reduction in frictions and as much as a 50 per cent fall in their enquiry costs.

Newman added: “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.”

Onur Ozan, head of Mena and Turkey at SWIFT said: “We are pleased to support Middle East banks in offering their customers speed, transparency and traceability for cross-border payments. The region has witnessed great traction when it comes to SWIFT gpi adoption. In collaboration with pioneering banks in the region, SWIFT gpi is transforming the cross-border payments landscape and establishing itself as the new standard.” – TradeArabia News Service