What is SWIFT gpi?

What is SWIFT gpi?

Find out how SWIFT gpi can revolutionise B2B international money transfers by providing improved visibility, transparency and speed.

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In today's global economy, businesses need smooth and efficient international money transfers. However, these transactions often lack transparency, face delays, and come with high costs. To tackle these challenges, the Society for Worldwide Interbank Financial Telecommunication (SWIFT) introduced SWIFT gpi (Global Payments Innovation). In this article, we'll explore what SWIFT gpi is and how it has changed global banking to better serve customers.

Understanding SWIFT gpi

Released in 2017, SWIFT gpi is an innovative solution developed by SWIFT, a global provider of secure financial messaging services. Since its launch, SWIFT gpi has been transforming B2B international money transfers. It operates by leveraging advanced technology and infrastructure to facilitate transparent, fast, and cost-efficient cross-border transactions.

Each transaction is assigned a Unique End-to-End Transaction Reference (UETR), which allows businesses sending and receiving payments, as well as the intermediary banks, to track and monitor the payment's progress in real time.

Benefits of SWIFT gpi

A common complaint of SMEs and businesses involved in cross-border trade is the lack of transparency when paying suppliers and collecting funds overseas; funds might be held up somewhere along the line, delaying payments, or fees may be deducted at either end. With SWIFT gpi, there's enhanced visibility, transparency and speed.

Real-time tracking

One of the key advantages of SWIFT gpi is its ability to provide businesses with unprecedented transparency. With real-time tracking and confirmation features, SWIFT gpi allows businesses to monitor their payments at every stage. All parties involved in an international payment can use the UETR to track their funds. This visibility eliminates the uncertainty associated with cross-border transactions, offering businesses a clear understanding of where their funds are at any given time.

Additionally, SWIFT gpi ensures end-to-end payment visibility, providing comprehensive information about fees, foreign exchange rates, and any deductions made during the transaction.

Increased speed and efficiency

Speed is crucial in today's fast-paced business environment. SWIFT gpi addresses this need by enabling same-day value transfer. Businesses can now send and receive funds within the same day, significantly reducing the time required for cross-border transactions.

This increased speed not only enhances operational efficiency but also improves cash flow management for businesses operating on tight timelines. Moreover, SWIFT gpi streamlines the reconciliation process and automates exception handling, further reducing delays and improving overall efficiency.

Before a transaction is executed, it goes through a pre-validation with the receiving bank to confirm if the transaction would succeed based on the provided information, thus reducing the risk of execution issues.

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  • Lock in conversion rates to manage your currency risk
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Reduced costs

Businesses often face hidden costs and uncertain exchange rates when conducting international money transfers. SWIFT gpi eliminates these concerns by providing businesses with real-time information about fees and foreign exchange rates, helping them make informed decisions. Banks that are a part of the SWIFT gpi network are obliged to provide information around transfer times and fees.

SWIFT gpi also minimises correspondent banking charges by enabling direct payments between financial institutions, resulting in cost savings.

Enhanced security and trust

Trust and security are essential in international money transfers. These aspects are prioritised by incorporating robust security protocols and compliance measures. SWIFT gpi mitigates fraud and operational risks so businesses can conduct cross-border transactions with peace of mind. The secure exchange of payment information guarantees confidentiality and integrity throughout the process.

By addressing  the challenges faced by businesses in the global market, SWIFT gpi represents the future of B2B international money transfers with enhanced visibility, transparency, security and speed. The power of SWIFT gpi lies in its ability to unlock the benefits of seamless cross-border transactions, improving cash flow management and strengthening relationships with partners worldwide. WorldFirst, as part of the SWIFT gpi network, offers these benefits to World Account users.

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Disclaimer: These comments are the views and opinions of the author and should not be construed as advice. You should act using your own information and judgement. Whilst information has been obtained from and is based upon multiple sources the author believes to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the author’s own judgement as of the date of the briefing and are subject to change without notice. Please consider FX derivatives are high risk, provide volatile returns and do not guarantee profits.

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