SWIFT Mulls The Development of A Frictionless Payments System For SMEs

News / 04.04.2020

Small and medium enterprises (SMEs)could soon find it easy to conclude their transactions. This follows global payments giant SWIFT’s announcement that would make instant payments available to SMEs. 

SWIFT, says it intends to be at the fore of global A2A and B2B transactions. The firm is taking on Visa, MasterCard, and emerging fintech ventures, for example, Ripple. 

The decision to venture into space was arrived at in a last month’s meeting of the firm’s Board and Executive. The decision is further informed by the push to make SWIFT’s platform richer, smarter and expedient. SWIFT’s efforts will enable local frictionless A2A transactions.

SWIFT Strengthening SME B2B Payments

Finextra reports that the firm’s expanded platform will aid financial institutions to strengthen their positions in B2B payments. Again, it will assist them to capture new volumes within the  SME and consumer segments.

CGI’s Andy Schmidt sees SWIFT’s move as possibly the most remarkable since the 1970s. He suggested that banks’ ownership of SWIFT could have influenced the announcement. That being the case, the banks would assume control over the interconnectivity of nascent instant payments schemes.

SMEs and Revenue Growth 

Ripple has long targeted SMES for revenue growth. Its payment messaging system and XRP crypto-asset point to this truth.

Ripple’s 2029 white paper on small business payments identified that SMEs constituted a dynamic and developing force in the cross-border payments space. Two-thirds of these payments originate from developed nations. However,  the prospects of growth and profitability in developing markets are twice those in the developed world.

All in all, it will take a while for the firm’s strategy to take hold. SWIFT intends to roll out the implementation of its expanded platform towards 2022’s end. It will be a worthy cause when fully implemented.

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Dacosta Osei-Tutu, a first degree holder in Nursing, who couples his Nursing career with blockchain blogging, has a great passion for the blockchain technology and aims to play a vital role in applying this revolutionary technology to disrupt the healthcare system in Africa.