The Society for Worldwide Interbank Financial Telecommunication (SWIFT) – a cross-border payment network owned by a consortium of global banks – launched a low-value cross-border payment solution called SWIFT Go. Through SWIFT Go, consumers and businesses can send near real-time payments anywhere in the world from their bank accounts.

Why should we care?
Cross-border payments through the SWIFT network have traditionally been slow, expensive, and lack transparency. SWIFT has been working to increase the speed and transparency of cross-border payments through a toolset called SWIFT gpi, which enhances the speed and transparency of cross-border transactions, allowing them to settle faster (within a day, and often within minutes). Clients using SWIFT gpi can also pinpoint where a payment is in the process. Nonetheless, fintechs like Wise and Remitly have been trying to grow market share, particularly on lower-value transactions. Wise, for example, has a network of local accounts around the world, and recipients are paid from Wise's local account and the money never crosses borders. This makes sending money cheaper and faster than traditional foreign-exchange methods. SWIFT Go runs on the rails of SWIFT gpi, and through it, banks are poised to compete more aggressively with fintechs on lower-value cross border transactions. SWIFT Go promises “competitive prices,” but it’s unclear if the banks will attempt to undercut the fintechs on fees. “The new service is a direct response to the needs of small businesses and consumers for fast, easy, predictable, secure and competitively priced cross-border payments,” Stephen Gilderdale, chief product officer at SWIFT said.