Understanding SWIFT GPI: Enhancing Efficiency in Global Payments

What is SWIFT GPI?

GPI stands for "Global Payments Innovation". It launched with the goal of transforming B2B cross-border payments for financial institutions, and it has gone a long way toward meeting that goal. According to SWIFT, nearly 100% of SWIFT GPI payments reach the beneficiary bank within 24 hours, and 60% reach their destination in just half an hour.

It means that Global Payments can move with the speed of face-of-face transactions, ensuring that transactions are completed quickly and saving resources that would otherwise be invested into tracking, chasing, and following up on those payments, not to mention the time spent dealing with recipients concerned that they didn't receive their funds on time.

Benefits of SWIFT GPI

The Society for Worldwide Interbank Financial Telecommunication has been a game-changer for international payments, and with SWIFT GPI, financial institutions can reap even more benefits, including:

Faster Cross-Border Payments

As noted above, the SWIFT Global Payments Innovation processes most payments in just 30 minutes. As with other cross-border payment methods, there can be delays, but with SWIFT GPI, these usually last minutes or hours, so the recipient isn't forced to wait several days for their funds to clear.

It's Easy to Track Payments

SWIFT GPI provides full visibility throughout the payment transfer process, with real-time updates that show where the money is every step of the way. Users can check the payment status and remain confident that their international transfer is on track.

It Provides Full Payment Transparency

SWIFT GPI is upfront about all operational costs and other payment details, including processing fees and expected arrival timeframes.

It Sends Confirmation Receipts

The sender will receive a confirmation as soon as their payment lands in the recipient's bank account, negating the need to constantly check the payment status or confirm delivery with the beneficiary.

It Benefits Everyone

SWIFT GPI incorporates seamlessly into existing infrastructure, which is one of the main reasons it has experienced such rapid adoption. Banks also benefit from real-time payment status updates and traceability, corporations can improve their visibility into each step of the payment process, and end users get faster cross-border transactions.

Senders Can Pause Payments

SWIFT GPI services include the ability to pause payments before they reach their final destination, giving senders more control over their transfers and allowing them to interject in the event of oversights, mistakes, or a change in circumstance.

It is Secure

Payment security has always been at the heart of SWIFT's message, and this is also true for GPI. Additional security measures protect clients and their funds while making compliance easier for financial institutions. It includes numerous Financial Crime Compliance solutions that help institutions navigate complex regulatory issues.

It is Reliable

Businesses need to know that their high-value transactions will reach end beneficiaries in a timely manner. GPI incorporates various security measures to secure the funds as they move along the payment chain and to make sure they are being sent to the correct recipient.

How SWIFT GPI Works

By working within the existing infrastructure of the banking system, SWIFT GPI integrates seamlessly.

All transactions are given a Unique End-to-End Transaction Reference (UETR), which allows the sender to track the payment. It also uses pre-validation, effectively communicating with the beneficiary bank to check whether the payment will be successful, thus reducing the risk of failed transactions.

There are various other factors that make this service such an innovative and transformative force in the world of international payments, including:

Customer Credit Transfer (gCCT)

gCCT improves the speed, transparency, traceability, and efficiency of international payments by connecting to various payment networks in real time. It's a network of interconnected institutions that speed up the payment process.

GPI Stop & Recall (gSRP)

Outside of SWIFT GPI, payment cancellations are slow and inefficient. With GPI Stop & Recall, a cancellation request can be sent quickly, with the sender also given full visibility on the payment recall process.

Instant International Payments (gInstant)

Using gInstant, financial institutions can connect existing real-time payment networks with GPI services, allowing for simple and efficient cross-border transactions.

Mandatory Adoption of SWIFT GPI

In late 2018, within two years of the launch of Global Payments Innovation, SWIFT stated that all banks must be capable of receiving GPI messages. This made SWIFT GPI mandatory for financial institutions keen on reducing payment friction and avoiding disruptions.

It's worth noting, however, that regulators have not made SWIFT GPI mandatory. It certainly makes life easier for financial institutions and ensures they are equipped with the latest innovations, but they are not required by law to adopt SWIFT GPI services.

Within its first five years, SWIFT GPI was adopted by over 4,000 financial institutions, facilitating payments in more than 150 currencies. The number of adoptees has continued to rise in the years since then.

The Difference Between SWIFT and SWIFT GPI

SWIFT is the name of a corporation that manages a global messaging network designed to promote reliable communication across financial institutions. It transfers the information related to financial transactions rather than processing the money itself.

SWIFT GPI, on the other hand, is an initiative created by SWIFT to promote communication and real-time tracking across the payment chain.

The SWIFT Global Payments Innovation uses the SWIFT network and simply introduces new concepts and capabilities to optimise existing infrastructure. For instance, the SWIFT network uses standardised messaging formats to enhance compatibility throughout the payment chain, while GPI introduces unique tracking innovations to give senders more insights into this process.

Banks that adopt SWIFT or SWIFT GPI must agree to meet the corporation’s strict rules around compliance. These include a series of protocols designed to combat the threat of money laundering, as well as customer due diligence measures that require adopters to verify the identities of their customers, look out for red flags, and report suspicious activity to the relevant authorities.

Streamline Your International Payments with Aspire

Thanks to SWIFT GPI and its many additional services, cross-border payments have never been quicker or easier. In the span of a couple of decades, processing times have gone from days to minutes, fees have plummeted, complications have been all but negated, and there is less demand and fewer complications for business owners.

At Aspire, we embrace this simpler digital future and offer businesses in Hong Kong an array of services and features to help them conduct business in this digitally interconnected world.

With an Aspire Business Account, you get everything you need to run your business — including the ability to send and receive money in over 30 currencies across 130 countries, all at low, transparent fees. You can also make same-day transfers to more than 15 countries and create local collection accounts in HKD, USD, CNY, EUR, and GBP to streamline your overseas payment collection.

You can further speed up procurement using Aspire's Corporate Card and enjoy 1% cashback on SaaS and digital marketing platforms. Additionally, you can set budgets by project, client, or team, and track them in real-time through our Expense Management solution.

Sign up for an Aspire account today and join the many Hong Kong businesses that already trust our services.

FAQ

What is SWIFT Go?

SWIFT Go works in a similar way to SWIFT GPI, but while the latter focuses on high-value international transactions, SWIFT Go focuses on low-value payments. It provides many of the same benefits, including rapid transactions and complete transparency, but these benefits are targeted more toward small and medium-sized businesses.

Which banks use SWIFT GPI?

Many major banks now use SWIFT GPI and adoption rates are increasing. Some of the biggest adopters include Bank of China and Citi. Many major banks signed up for the service before its launch, ensuring they were ready to go as soon as SWIFT flipped the switch. Within a couple of years, the number of major financial institutions with SWIFT GPI capabilities was in the hundreds. Many more have embraced the service since then.

How long does a SWIFT GPI transfer take?

In most cases, payments will reach end beneficiaries within 30 minutes. Some payments may take longer to finalise, but nearly all of them will clear within 24 hours, and users can track the payment status each step of the way.

GPI prides itself on sending speedy transfers, and while this is not the only benefit of the service, it's one of the main attractions.

How do I track a SWIFT GPI payment?

It depends on the bank or other financial institution used to send the money. Typically, you will be able to check the payment status directly from the transaction summary screen, which will show you all of the payment details and should also include a tracking link.

Alternatively, check the account page on the banking website or app and look for a "payment tracking" option.

Can I recall a SWIFT GPI payment?

In most cases, you can use the SWIFT GPI Stop & Recall feature to halt, reverse, and recall a payment. Use the GPI Tracker to initiate such a request. Bear in mind, however, that the success of this feature is dependent on various factors, including whether or not the payment has cleared. If it has been finalised, it can be trickier to recall and ultimately comes down to how willing the recipient is to cooperate.