SWIFT is an abbreviation for the Society for Worldwide Interbank Financial Telecommunication and stands for a worldwide network of banks that work collaboratively to provide their customers with international bank transfers.

All SWIFT transfers are carried out via the payer's bank, which gets debited and are routed through multiple intermediary banks before the recipient's bank is credited. This whole process can take up to 1-4 business days.

Local transfer uses a web of financial institutions through which the recipient can be paid using their local bank. Intermediaries are used for facilitating transactions and to clear the bank transfer payment, also known as a remittance.In local transfers, the funds are processed by the recipient's local bank in their local currency and settled through their local payment system.

All you need are the recipient's bank details, including their local bank account number. While local transfers are cheaper than SWIFT transfers, they take longer to process.

The key difference between international wire transfers and local bank transfers is that local bank transfers can be completed at a relatively low cost, whereas international wire transfers are generally more expensive. International wire transfers, however, are more reliable and faster than local bank transfers.

Global payment is the process of transferring money to a bank account that is set up in a foreign country. This payment could be made to your supplier, your vendor, an employee, a business affiliate or any other entity. Making global payments involved strenuous processes and numerous fees in the past, however, the process is easier and more cost-effective today.

Generally, a global payment provider is involved, who functions as an intermediary between the payer & the receiver from different nations. When a business uses its card to make a purchase, the provider receives the transaction details and relays them to the issuing bank which is located in a different country, thus requiring a process of conversion.

A Global Business Account is very useful if your business sends or receives payments internationally, it enables you to send and receive payments hassle-free under one account.
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1. Save on foreign exchange costs

Saving currency conversion costs is the chief benefit of a multi-currency account. A multi-currency account allows you to receive payment in foreign currency, hold it for as long as you want and convert it when the rate is favourable for you, thus, saving you on conversion costs that add up to a significant amount in the long run.
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2. Efficient cash flow management

Businesses often hold international payments because the conversion rates are not in their favour thus becoming a roadblock for efficient cash flow management. With a multi-currency account, however, you can send or receive money anytime and convert it later.

3. Smooth international transactions
With a Global Business Account, you can accept payments in your client or customer’s local currency and pay vendors in their preferred currencies. A Global Business Account allows you to create sub-accounts for different currencies. You can share the unique account number for each currency and send or receive payments easily which is very convenient.

Global payments are offered by various providers through business accounts. Read our article to know more about types of business accounts and how to choose the best one for your business. There are many banks and fintech companies offering business accounts to businesses in Singapore. We have covered them all in our blog, you can click the links to view accounts offered by various banks such as DBS, OCBC, Maybank etc.

However, if you are a start-up or a growing business, chances are you may not meet the eligibility criteria for most of these banks or find their charges to be expensive for your liking. You can consider opting for Aspire multi-currency account for global payments which offers you all the benefits, with eligibility criteria which are less stringent. Read our article on bank charges in Singapore for a quick and easy comparison.

Global payments can be facilitated by opening an account offline at physical branches or by signing up for a digital account which is comparatively easier to create. To open a digital account, you need to:

1. Register online using your Email
2. Provide business information such as name, number and address
3. Verify the information with a government-issued ID
4. Your account is live once verified

The key difference between international wire transfers and local bank transfers is that local bank transfers can be completed at a relatively low cost, whereas international wire transfers are generally more expensive. International wire transfers, however, are more reliable and faster than local bank transfers.

Eligibility varies across providers, however, all businesses registered in Singapore are eligible for a Business Account. Foreign businesses can also open Global Accounts with Aspire.

Business owners are required to submit government-issued identity proof and an initial deposit (if required) before opening a multi-currency account in Singapore.

Whichever mode you choose to transfer money, you’ll usually need the following details. Depending on which mode you choose, additional details (e.g. SWIFT code etc.) may be required.

1. Name of the recipient.
2. Name and address of recipient’s bank.
3. Six-digit sort code of the recipient’s account.
4. Eight-digit account number of the recipient’s account.
5. A payment reference (often your business name or customer number) to let the recipient know where the money came from.
6. Intended date of payment.