SWIFT to Launch a New Payment System to Take on Blockchain Tech
SWIFT, the Society for Worldwide Interbank Financial Telecommunication has announced its decision to launch a Global Payment Initiative (GPI) service which will compete with the growing threat of competing blockchain and fintech solutions provided by institutions like Ripple and Transferwise.
The pilot aims to “build the foundation of a new integrated and interactive service that will significantly improve efficiencies in the payments process and which will ultimately be made available to all 10,000 banks across the SWIFT network.”
A GPI test, was successfully conducted in October, carrying out instant cross-border payments with banks in China, Singapore, Thailand and Australia.
Prepared to empower rapid recognizable proof and end of blunders and exclusions in installment information, for example, absent or erroneous recipient data or inadequate administrative data, Quick expectations the GPI installments administration will empower fast and consistent exchanges, in this way diminishing deferrals and expenses, and in addition enhancing client encounter.
With the move, Quick has directed its concentration toward containing the risk of blockchain-based fintech new businesses offering similar administrations at a less expensive cost. One such blockchain venture is J.P.Morgan’s Interbank Data System (IIN). Propelled in September, it currently brags a participation tally in excess of 130 banks, including Satander and Societe Generale.
IIN, cases to limits rubbing in the worldwide installments process, empowering installments to achieve recipients quicker and with less advances. With its participation as yet developing, IIN guarantees banks the capacity to determine blunders and consistence issues quickly by sharing data on a common appropriated record.
SWIFT’s GPI uses an Application Programming Interface (API) which enables banks to access each other’s data to validate recipient account information before payment is processed, thereby avoiding errors and delays.
An excerpt from the statement released by SWIFT reads:
“Fully integrated with GPI payments, the service will facilitate real time dynamic bank-to-bank interaction using APIs to improve the predictability and efficiency of international payments, and look at using predictive analytics. It will later be complemented with a post-payment investigation and reconciliation service that will allow for fast resolution of the remaining factors, typically arising from compliance or regulatory requirements, which can slow down the payments process.”