Swift, a global financial messaging service that is used by just about everyone to transfer value, has partnered with Wise (LSE:WISE) – a stealth bank that got its start in low-cost transfers.
According to a statement by Swift, the partnership will enable users to complete transfers using Wise by leveraging their enterprise service built for banks and big firms. Swift says this means that customers will benefit from the Wise service without making any internal changes.
Wise will gain access to Swift’s cloud and API connectivity and Payment Pre-validation, including a payment status tracker, which Wise will update for an end-to-end view across both networks.
Wise’s global payments network enables more than 57% of customers’ cross-border payments to settle instantly and more than 90% to settle in under an hour.
Steve Naudé, Managing Director of Wise Platform, said that banks face a number of challenges when managing cross-border payments, and this may mean incompatible tech or old infrastructure. By using Wise’s established, global network they are enabling banks to “innovate effortlessly.”
“Our network, combined with Swift’s extensive reach and trackability, will make international payments more convenient, faster and lower cost for banks, without necessitating a major tech build,” said Naudé.
Swift Chief Strategy Officer, Thierry Chilosi, said they have built an infrastructure that connects the world, and the collaboration with Wise shows how Swift can “be the bedrock from which the whole industry” and to improve cross-border payments.
“Cooperation such as this will be vital in our collective efforts to achieve the G20 targets for cross-border payments and enable the seamless, efficient and secure movement of value around a fragmented world.”
The announcement was made in Toronto where Wise founder and CEO Kristo Käärman and Swift CEO Javier Pérez-Tasso will discuss the partnership.