5 things you might not know about the Global Payment Initiative (GPI)

The Global Payment Initiative (GPI) was launched in 2017. We discuss 5 things you may not know about the GPI.

The Global Payment Initiative (GPI)

1. The GPI is a banking industry initiative launched by SWIFT (Society for Worldwide Interbank Financial Telecommunication) in 2017. Its aim is to improve the speed, transparency, and traceability of cross-border payments, making the process more efficient and reducing the risk of errors or fraud.

2. The GPI works by creating a unique tracking reference (UTR) for each payment, which enables banks to track the payment in real-time and provides the sender and receiver with instant confirmation when the payment has been received. This increases transparency and reduces the need for manual intervention, which can slow down the payment process.

3. More than 3,500 banks have signed up to the GPI, covering over 85% of all SWIFT transactions. This makes it one of the largest and most comprehensive global payment initiatives in the world.

4. In addition to improving payment speed and transparency, the GPI also helps to reduce costs associated with cross-border payments. By reducing the number of intermediary banks involved in the payment process and streamlining communication between banks, the GPI helps to reduce the fees charged for cross-border payments.

5. The GPI is continuously evolving to meet the needs of the banking industry and improve the cross-border payment experience for customers. SWIFT has recently launched GPI Instant, which enables near-instantaneous cross-border payments, and GPI Pre-Validation, which allows banks to check payment instructions in advance to reduce errors and delays.

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