SWIFT launches Payment Pre-validation service to eliminate frictions in international payments
By Megha Bhattacharya
SWIFT has announced the go-live of a service that will enable banks to verify payee account details before an international payment is sent, removing a key point of friction in cross-border transactions. The new Payment Pre-validation service is a core building block in SWIFT’s strategy to drive instant and frictionless transactions worldwide.
Stephen Gilderdale, Chief Product Officer, SWIFT said: “SWIFT’s strategy to enable fast and frictionless payments takes a major step forward with the launch of this service. Payment Pre-validation will bring end-to-end efficiency, enabling our customers to provide better, faster and new services to their own end clients.”
SWIFT developed the Payment Pre-validation service in close cooperation with financial institutions, and a number of major global banks have already signalled their commitment to the service. SWIFT plans to continue innovating the service, and over the coming months will offer additional checks based on reference data encompassing millions of transactions to further predict, at the point of initiation, when a transaction may potentially run into friction points along the way.
Thomas Halpin, Global Head of Payments Product Management, HSBC, said: “Pre-validation is an important step in helping corporates to make simpler, faster and more secure cross-border payments. This feature will ensure customers can send payments in confidence, and the increased security brings benefits not just for customers but for the entire payments community.”
George Doolittle, Head of Global Payment Services, Corporate and Investment Banking Group, Wells Fargo, said: “Wells Fargo is pleased to be an early participant in SWIFT’s pre-validation solution as we continually seek ways to improve the global payment services that we bring to our clients. The transformative value of SWIFT’s Payment Pre-validation service is the decrease in friction, resultant cost efficiency and improved client experience of understanding and correcting format issues before they result in a repair or inquiry at the beneficiary’s bank or creditor’s agent which can bring great benefits to our industry. This service addresses a key challenge in the cross-border payment industry.”
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