Swift and Wise Unite to Simplify Cross-Border Payments
In a landmark announcement at the 2023 Sibos conference in Toronto, global financial messaging system Swift and innovative fintech company Wise revealed their partnership to transform the landscape of cross-border payments. This groundbreaking collaboration promises to provide financial institutions and customers with more efficient and accessible cross-border payment options.
Swift, renowned for its robust infrastructure that connects financial institutions worldwide, has joined forces with Wise, a global technology company known for its commitment to improving international money transfers. Together, they intend to enhance the speed, transparency, cost-effectiveness, and accessibility of cross-border transactions, aligning their efforts with the objectives set by the G20 and the United Nations Sustainable Development Goals.
Under this partnership, financial institutions can now easily route Swift payment messages directly to the Wise Platform, Wise’s infrastructure solution designed for banks and major enterprises. This integration eliminates the need for significant system overhauls, enabling institutions to leverage the benefits of both Swift’s extensive reach and Wise’s efficiency seamlessly.
One of the standout features of this collaboration is the utilisation of Swift capabilities, including cloud and API connectivity and Payment Pre-validation, by the Wise Platform. Furthermore, the Wise Platform will continue to provide Swift GPI features, such as a payment status tracker. This tracker will be consistently updated to ensure end-to-end visibility for transactions across both the Wise and Swift networks.
Steve Naudé, the managing director of Wise Platform, emphasised the significance of this partnership for banks facing technological challenges when enhancing international payments. He stated, “By simultaneously leveraging existing payments architecture and optimising payouts using Wise’s global network, we empower banks to innovate effortlessly.” This approach is set to streamline international payments for banks while minimising the need for costly technological upgrades.
Thierry Chilosi, chief strategy officer at Swift, stressed that the collaboration with Wise showcases how Swift can be the foundation for industry-wide innovation in cross-border payments. He emphasised that cooperation like this will play a pivotal role in achieving the G20’s targets for cross-border payments, ensuring the seamless, efficient, and secure movement of value in a fragmented world.
The partnership between Swift and Wise also comes at a critical time when a substantial portion of small and medium-sized businesses (SMBs) view the complexity of cross-border payments as an obstacle to their growth. This collaboration addresses these pain points and simplifies the cross-border payment process for businesses worldwide.
Swift’s recent achievements in speeding up cross-border payments, with 89% of transactions processed within an hour, exceed the G20’s Financial Stability Board goals. This achievement underscores Swift’s commitment to facilitating rapid and efficient cross-border transactions.
To further discuss the collaboration and its implications, Wise CEO Kristo Käärman and Swift CEO Javier Pérez-Tasso will engage in a discussion at the Sibos conference on Tuesday, 19th September. This conversation promises to shed more light on the partnership’s strategic vision and potential to reshape the world of cross-border payments.
In conclusion, the partnership between Swift and Wise represents a significant leap forward in cross-border payments. Combining the strengths of two financial giants, this collaboration aims to provide businesses and financial institutions unparalleled efficiency, transparency, and accessibility in international transactions. As the financial ecosystem continues to evolve, initiatives like this partnership will play a pivotal role in shaping the future of cross-border payments, making them faster, more reliable, and more accessible to all.
