SWIFT
SWIFT is the global messaging network banks use to send international payment instructions — not a money-moving system itself, but the infrastructure that standardises bank-to-bank communication.
SWIFT (founded 1973, headquartered in Belgium) connects 11,000+ banks and financial institutions in 200+ countries. Messages (MT format, migrating to ISO 20022) specify who, what, where, and in which currency. SWIFT itself doesn't move money — settlement happens via correspondent banks or central banks. Traditionally slow (1–5 days) and expensive (20–50 euro per transfer); SWIFT gpi has cut this to minutes for 50%+ of volume since 2017.
Example
A Dutch company pays $10,000 to a US supplier: ING sends SWIFT message (MT103) to correspondent bank, which relays to US bank, which credits the receiving account. Routing via 1–3 intermediate steps; fee per hop.
Frequently asked questions
SWIFT or SEPA?
SEPA: inside Europe (EUR, free/cheap, instant). SWIFT: worldwide (all currencies, fee per hop, traditionally slower). For EU transfers always use SEPA; SWIFT for non-EU.
What is SWIFT gpi?
SWIFT global payments innovation (2017+): payment tracking like parcels, agreed settlement deadlines, transparent fees. Roughly 50% faster than classic SWIFT.
Related terms
Further reading
- → Our service: Bitcoin & Fintech