Swift and Wise are teaming up to offer financial institutions and their customers more cross-border payment options.
Via the partnership, financial institutions can transmit Swift payment messages to the Wise Platform via its new Correspondent Services solution.
According to Swift, banks and other major enterprises that leverage its platform won’t need to worry about dealing with a new interface, but rather, will see the existing infrastructure that they’re familiar with.
The Wise Platform will also leverage several of Swift’s tools, including cloud and API connectivity, as well as Payment Pre-Validation.
“This is a very interesting play amidst the major card schemes starting to offer cross-border options that circumvent traditional wire rails and correspondent banking,” said Albert Bodine, Director of Commercial and Enterprise Payments at Javelin Strategy & Research. “2024 is going to be a year to watch as new payments rails have entered the market and traditional ones are having to adapt and evolve to stay relevant.”
Banks Must Not Drop the Ball with Cross-Border Payments
When it comes to modernizing their legacy systems, many banks are still lagging behind. With emerging technologies entering the market at a rapid pace—and more customers demanding instant, secure, and low-cost payments—banks are feeling the pressure to innovate. Cross-border payments can help them do so. Last year, global remittances were projected to reach $974 billion, and we expect growth to continue to rise.
It’s important to note, however, the movement of funds internationally is not so straightforward. Organizations must contend with both regulatory and compliance requirements when it comes to sending and receiving money, depending on the region.
When it comes to getting ahead of the innovation curve, partnerships with industry specialists will be a game changer. That’s why the collaboration between Swift and Wise is a beneficial one, as this solution brings faster, seamless, and secure payments, without having to build a major technological solution from scratch.