Swift connects instant payment systems throughout Europe

Swift, a global messaging platform, has connected domestic payment schemes throughout Europe. It seeks to enhance transparency and end-to-end tracking of instant cross-border transfers meant for the EU.

As announced by the company on 30th November (Thursday), this follows the launch of EPC’s (European Payment Council) One-Leg-Out Instant Credit Transfer scheme (OCT Inst). It went live this week and is powered by Swift.

Swift further noted that the go-live follows a successful proof of concept earlier in the year. To do so, it teamed with the European payment system, Iberpay, and several banks in Brazil, the UK, Australia, and Spain.

In a news release, the scheme enables payments from and to Europe to be processed at any time of day and night. Further, financial institutions see OCT Inst as a way to optimize the benefits of domestic instant payment systems worldwide while using the existing tracks.

Swift’s chief executive in Europe, Marianne Demarchi stated, “Interoperability is at the heart of everything we are doing at Swift to achieve our strategy of instant and frictionless payments for all, and it will be key to achieving the G20’s goals for cross-border payments. The EPC’s OCT Inst scheme is a positive step for Europe that will enhance the user experience for payers in Europe, but also all around the world.”

In August, the company announced that it has made major progress in meeting the goals set by G20 on improving cross-border payments. Indeed, it has surpassed the set target for speedy processing of international payments.

More specifically, 89% of the transactions processed on the Swift network reach the recipient bank within an hour. This speed is significantly higher than the Financial Stability Board’s target. According to the target of the aforementioned board, 75% of international payments will reach the recipient bank within one hour by 2027.