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News and resources on payments systems, innovations and initiatives worldwide.

Lloyds Bank is first in the world to connect to Swift gpi Instant

Lloyds Bank in the UK has become the first bank to switch on Swift gpi Instant, a new service from the Brussels-based interbank co-operative that enables consumers and businesses to send tracked payments in seconds across borders.

  15 5 comments

Lloyds Bank is first in the world to connect to Swift gpi Instant

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The gpi Instant service works by connecting Swift gpi, the high-speed cross-border rails with real-time domestic infrastructure, in this case the UK’s Faster Payments.

Remittance payments from anywhere in the world destined for the UK routed through Lloyds can now arrive in seconds, with clarity on fees and predictability on when an end beneficiary’s account will be credited.

Ed Thurman, managing director, head of global transaction banking, Lloyds Banking Group, says: “The gpi Instant service is set to be a game changer in cross-border payments and we are very excited to be the first bank globally to offer the service here into the UK. We already offer our financial institution clients access to the Faster Payments Service for their cross-border flow into the UK, the launch of Swift gpi Instant will make those transactions visible on the SWIFT gpi Tracker."

The go-live follows a successful pilot that took place earlier this year and involved banks including Lloyds, Barclays, Commonwealth Bank of Australia, DBS, Wells Fargo and BBVA. It saw cross-border payments credited to accounts in the UK in seconds and built on the successful proof of concepts run by Swift and market infrastructures in Singapore, Australia and in Europe over the past two years.

David Watson, chief strategy officer at Swift says: “This is an important milestone in our strategic ambition to help banks meet growing global demand for instant and frictionless cross-border payments. We look forward to continuing our work with market infrastructures and financial institutions to bring the benefits of seamless cross-border payments to customers across the globe.”

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Comments: (5)

David Williams

David Williams Head of Liquidity at Silicon Valley Bank

Great to see this - congrats!

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

The expression "routed through Lloyds" suggests that this new payment service is supported only for payments initiated from a Lloyds office outside UK.

Soon after FPS was launched in 2008, Citi was planning a realtime crossborder payment service where you could walk in to a Citi branch in (say) Dubai and transfer money to somebody in UK and the payment would get credited to the Beneficiary's account in any UK bank (say RBS London) in seconds. Citi Dubai to Citi UK transfer happened via internal rails (ergo realtime) and Citi UK to RBS London transfer happened via FPS (ergo seconds).

Not sure what's the role of SWIFT gpi Instant in Lloyds new payment service (unless Lloyds lacks an internal rail and is using SWIFT even within the network of its own international offices). 

James Piggot

James Piggot Product Analyst at Finastra

@ketharaman I read this slightly differently, the payment can come from any bank abroad that has implemented SWIFT gpi, the receiving bank in the UK must be Lloyds as currently they are the only one that has implemented this service. Would be interesting to know which one of us is correct?

 

A Finextra member 

Beside instant payment it will feature fees and FX transparency and E2E traceability of payments.

Ketharaman Swaminathan

Ketharaman Swaminathan Founder and CEO at GTM360 Marketing Solutions

@JamesPiggot:

Let's see!

If you're right, then this new launch by Lloyds is like "all dressed up and nowhere to go" because, since Lloyds is reportedly the first bank in the world to connect to SWIFT gpi Instant, then it must mean that no other bank is connected to it!

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