SWIFT Go launches for banks, posing threat to Ripple
- SWIFT announced the launch of SWIFT Go, a low-value cross-border payments service.
- Seven major global banks that handle $33 million worth of transactions per year went live with the service on July 27.
- Businesses and consumers can make direct transfers from their bank account using the new facility.
Leading banks now have an alternative to RippleNet for sending and receiving funds in a frictionless manner. The global provider of secure financial messaging is directly competing with the XRP network through SWIFT Go.
SWIFT offers real-time global payments and competes with RippleNet
Interbank messaging network SWIFT connects over 11,000 financial institutions globally. The giant aims to lower the cost of overseas bank transfers. The network targets both retail and small and medium-sized enterprises (SMEs) that pay international suppliers.
The company is using tight service level agreements between institutions to offer a fast and predictable payment experience. Go is built on the high-speed rails of the SWIFT global payments interface (gpi), an initiative by the giant to increase the speed, traceability, and transparency of global fund transfers.
The launch of Go marks a key milestone in the messaging network’s journey to connect 4 billion bank accounts across 200 countries in its network.
Top global banks, including BBVA, BNY Mellon, DNB, MYBank, Sberbank, Societe Generale, and UniCredit, are using SWIFT Go. The seven banks collectively handle $33 million worth of cross-border payments per year. SWIFT Go is in competition with RippleNet that offers transparent liquidity solutions with a decentralized infrastructure.
Ripple Network has rolled out features like a line of credit for SMEs on RippleNet to source capital on demand for making fund transfers, currently in beta.
The biggest differentiator between the two competitors is that RippleNet utilizes a single decentralized infrastructure that eliminates the need for custom integration.
As more banks and financial institutions adopt SWIFT Go, the competition between the two giants is likely to get intense as XRP fights to remain relevant against the banking system.
Stephen Gilderdale, Chief Product Officer of SWIFT, said,
SWIFT Go is a further step towards achieving our vision of enabling anybody, anywhere, to send money instantly and securely around the world. Our new service will allow banks to compete effectively in one of the fastest growing segments of the payments market, delivering a seamless experience for their customers.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
