SWIFT Go is a watershed moment in the world of cross-border payments. The banking industry continues to face intense pressure to improve cross-border payments. To compete with Fintechs and other non-bank competitors, they must focus on facilitating rapid and frictionless transactions with complete transparency and good security. SWIFT released a new service in July 2021 to address some of the lingering pain issues.
SWIFT Go is intended to enable small enterprises and consumers to make low-value cross-border payments that are faster, more predictable, and more competitively priced. So far, 11 worldwide banks have gone live with the service, handling more than 41 million low-value cross-border payments every year, and 120 institutions have signed up, with many more set to follow.
What is Swift Go?
SWIFT Go is intended to provide a seamless service offering for both banks and customers, and it can help enhance low-value payments in three ways:
- An improved consumer offering: This can be given by full predictability of payment circumstances (time, costs, and amount) and the delivery of the whole payment value to end customers via SWIFT Go banks. As a result, payment processing will improve, and in some cases, payments will be processed instantly.
- Increased harmonization: The single format requirement for SWIFT Go banks, as well as simplified fee choices to assist banks in bilaterally agreeing, implementing, and calculating the business conditions for SWIFT Go, will promote standardization.
- Cost savings: This unified currency guide, together with tougher network validation and SWIFT Go’s Reporting Engine, which provides reconciliation and bilateral billing, will encourage greater STP rates between correspondents, lowering expenses. There is also a timetable for achieving full STP.
Advantages of Using Swift Go
- Fast: Your customers will never be left waiting with transfers that fly through cities and cross borders.
- Total transparency: All processing fees and foreign exchange rates are determined upfront, so there are no unpleasant surprises when you receive payment.
- User experience: Sending banks can freely customize their front end to provide their consumers with an easy payment experience.
- Simpler claims for banks: Swift’s Central Reporting Engine accelerates the claims process, allowing banks to cut back-office expenditures.