Swift’s OCT Inst Launch: Europe’s Instant Cross-Border Payments Take Center Stage
According to the global messaging platform Swift, cross-border payments sent to Europe can be completed in a matter of seconds.
This is because the One-Leg-Out Instant Credit Transfer scheme (OCT Inst) of the European Payment Council (EPC), which is powered by Swift, became live this week, as the organization stated on Thursday, Nov. 30.
Swift stated in a press statement sent to PYMNTS that this method enables payments to and from Europe to be handled seven days a week, twenty-four hours a day.
“Interoperability is at the heart of everything we are doing at Swift to achieve our strategy of instant and frictionless payments for all, and it will be key to achieving the G20’s goals for cross-border payments,” said Marianne Demarchi, Swift’s chief executive in Europe.
“The EPC’s OCT Inst scheme is a positive step for Europe that will enhance the user experience for payers in Europe, but also all around the world.”
According to Swift, establishing this kind of connection between market infrastructures can assist in achieving the G20’s objectives for cross-border payments, which center on cost, speed, transparency, and accessibility. By 2027, the group wants to see 75% of cross-border payments paid to the recipients within an hour.
In April, Swift declared that it had surpassed that goal, as 89% of payments made through its network were received by banks within an hour.
This go-live, according to Swift, comes after a fruitful proof of concept earlier this year, in which the company collaborated with many banks from Spain, Australia, Brazil, and the United Kingdom as well as the European payment system, Iberpay.
According to the group, it is also looking into ways to integrate Swift’s offerings and participating in other interlinking programs.
In addition to requiring payment service providers to verify beneficiary information before to initiating a payment, upcoming European legislation on quick payments, for example, requires companies to deliver instant payments at the same cost as traditional payments.
Research indicates that over two-thirds of financial institutions are either “very” or “extremely” prepared to invest in new technology to address cross-border pain points, as PYMNTS reported earlier this year when Swift reached its 89% milestone. The number rises for FIs that handle the cross-border payment demands of larger businesses, as 88% of them express a “very” or “extremely” high willingness to adopt new technology in order to facilitate B2B payments.
additional recently, studies conducted by PYMNTS Intelligence and Ingo Money demonstrated that when issuers provide additional rapid payment choices, customer happiness increases.