SWIFT gpi ( Global Payments Innovation) is an initiative by SWIFT designed to implement a significant overhaul of the cross-border customer payment processing by focusing on addressing the challenges experienced by customers and banks over the years.

Some key issues in traditional payment processing are:

• Slow routing of payments through correspondent banks
• Higher cost of processing payments
• Lack of transparency of costs and the time taken

The advent of RTGS (real-time gross settlement) on domestic payments has exposed the need for this overhaul. The dawn of payments disintermediation through the use of peer-to-peer payments, the popularity of cryptocurrencies, and the introduction of stringent regulatory requirements have led SWIFT to devise a foolproof strategy that would create more value for customers when using the MT103 method of payments.

Benefits for Corporates:

• Efficiency. Faster settlement of funds, including same day receipt of funds for corporates, located in the same time zone.
• No hidden fees. All fees in the value chain are transparent.
• Real-time tracking. Payments can be monitored end-to-end, as they happen in real time.
• Unalterable remittance information. Remittance information is received securely, without any alteration.

Benefits for Banks:

• Lower costs in SWIFT network management
• Protection of payments’ volumes and opportunity to increase revenue.
• Increased ability to comply with regulatory and compliance requirements.
• Enhanced facility to provide a higher level of corporate satisfaction and value proposition.

China Systems is the world’s leading premier Trade Finance, Payments and Supply Chain Finance solutions provider for banks and corporates and has been a gold member of SWIFT since inception. China Systems’ solutions are consistent annual recipients of SWIFT Compatible or Certified Application labels in Trade, Supply Chain Finance, Payments, and Trade for Corporates.

Based on the SWIFT gpi initiative, China Systems has made enhancements to its products in compliance with the SWIFT gpi requirements, thereby enabling its financial institution customers to obtain certification and transact using the SWIFT gpi framework.

The changes include software updates to the source code for SWIFT gpi messaging and validation, covering the SWIFT template level changes of creating a unique end-to-end transaction reference (UETR) to the header of MT103, MT202 and MT202COV messages. These amendments also include the tags 111 and 121 of the MT103 Block 3. China Systems have built the UETR requirements in full compliance with the SWIFT Standards MT Release 2018.

China Systems applications have the capability for MT199 (push updates) or API (pull updates) connectivity on payments, including the ability to refer the SWIFT referential database (i.e. gpi directory).

China Systems’ Payments solution has once again been awarded the 2023 Compatible Application label for SWIFT gpi, which certifies that it has in place the advanced Stop and Recall processes for Payments initiated using gpi functionality and advanced Case resolution for all parties.

In line with its commitment to continuously develop and provide innovative solutions to our customer banks and corporates, China Systems will carry on with its close partnership with SWIFT to ensure its solutions’ compatibility with future upgrades to the gpi framework.

For further information on China Systems products and gpi support capabilities, please contact your local China Systems office/ representative for more information.