SWIFT's integration of Payment Pre-validation and Confirmation of Payee schemes enhances international transaction security.
The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has introduced an instant payment system, a major breakthrough in cross-border transactions to and from Europe. As a pivotal player in secure financial messaging services, SWIFT, with over 11,500 connected banking and securities organizations globally, now operates the One-Leg-Out Instant Credit Transfer scheme (OCT Inst) continuously. This system, backed by the European Payment Council, allows 24/7 processing of cross-border payments, marking a transformative shift in global financial transactions.
SWIFT's OCT Inst initiative, now live, follows a successful proof of concept in collaboration with Iberpay, a leading European payment system. Major banks such as BBVA, CaixaBank, Santander, ANZ, National Australia Bank, Itaú Unibanco, and Lloyds Banking Group participated in the initiative, resulting in the successful processing of dozens of international payments within seconds.
Aligned with upcoming European legislation, SWIFT is adapting its system to provide instant payments at costs comparable to traditional methods. Notably, SWIFT addresses mandatory beneficiary verification through the integration of Payment Pre-validation with domestic Confirmation of Payee schemes, ensuring compliance across the Eurozone and bolstering the security of international transactions.
The international banking community has lauded the launch of this instant payment system. Industry leaders from institutions like Santander, Banco ITAU Unibanco SA, ANZ, BBVA, National Australia Bank, and BNP Paribas have expressed support for its potential to enhance customer experiences and advance global banking practices. This transformative approach to international payments has garnered widespread acclaim, emphasizing the industry's readiness for innovation.
