The Society for Worldwide Interbank Financial Telecommunication, more commonly known as SWIFT, announced in a press release the launch of an integrated pre-validation gpi payments service solution in an attempt to stay ahead of competing blockchain companies like Ripple.
SWIFT is now turning to blockchain to build the foundation of a new integrated and interactive service that will 'significantly improve efficiencies in the payments process' and which will ultimately be made available to all 10,000 banks across the SWIFT network.
SWIFT trials new payment system to compete with Fintechs and emerging Blockchain solutions. https://t.co/N3HWLRMffn— Christoph Kreiterling (@KreiterlingCh) January 3, 2019
It is clear that SWIFT wants to demonstrate that it can hold off challenges presented by blochchain companies like Ripple, by addressing its shortcomings in its own services and establishing once and for all where improvements can be made.
The press release further states that the pilot will enable banks to send and receive API calls over SWIFT to seamlessly check beneficiary account information with the ultimate receiving banks. This will allow banks to speedily remedy any inaccurate or missing information, reducing delays and costs.
Luc Meurant, Chief Marketing Officer, SWIFT, said that SWIFT gpi has already created a fast and frictionless cross-border payment experience for many banks and corporates.
'But we know that there are still payments which can be sped up further by ensuring the correct information is provided at the start. By embedding this new capability in the same payment messaging channel, thousands of banks will benefit from the resulting efficiencies, thus boosting the financial services industry as a whole as we move toward universal implementation of gpi in 2020', he added.
SWIFT announced that the pilot now has 14 major banks involved in its current error-finding project.
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As a direct threat to SWIFT, Ripple has demonstrated to be a cheaper, quicker, and a more efficient technology when it comes to cross-border payments and it has been highlighting that Ripple’s plan is to compete with SWIFT and address all its flaws.
Ripple’s chief market strategist, Cory Johnson, made clear that Ripple plans to overtake SWIFT, by saying that 'Ripple is meant to be a replacement for SWIFT' in a recent video interview.
- Ripple is meant to replace SWIFT— Steven Diep (@DiepSanh) January 3, 2019
- XRP is meant to be a digital way to move value
- All of Ripple's customers are using both Ripple and SWIFT
Cory Johnson, Ripple
Johnson added that there are at least 100 SWIFT-connected banks including Santander which have already started to use Ripple’s xCurrent and that customers eventually would choose to go with the option that provides quick transfer and fewer costs and that this is definitely Ripple and XRP.
It remains to be seen if SWIFT can hold on to its number one spot, and if Ripple will be the one to eventually overtake them.