SWIFT Embraces Blockchain, Introduces New Electronic Payment System to Reduce Delays
The Society for the World Interbank Interbank Financial Telecommunication, SWIFT has finally launched its Electronic Blockchain-based Payment System. This new system will be used by the Company to deal with all its payment delay issues.
It would also enable banks and other financial institutions which operate on the company’s platform to easily access each other’s API, verify accounts and process payments faster. They can access and edit data shared on a distributed ledger hosted in the cloud.
The financial messaging service provider has taken this step in response to the demands of the numerous participants on its platform, who have been facing issues of delay in payment processing.
A lot of all the numerous users of SWIFT network, like banks and other payment processors indicated interest in the new system since it has been piloted. About 15 banks who were on a similar platform have now switched over during the launch, among these is JPMorgan.
A couple of months ago, it was rumored that SWIFT and Ripple Inc had plans to come together, but by this very move, the financial messaging company has shown it had no such interest.
The Belguim-based processing company doesn’t seem in any way willing to be tied together with any fintech company. The newly launched payment system will function without the support of other fintech companies’ networks.
This could also be an attempt to recoup all the participants who were formally on their network but moved over to Ripple’s platform in an effort to avoid payment processing issues. The company would now be in the position to recover every business it has lost to other startup financial technology companies.
SWIFT has been a household name in payment processing, launching this new system would enable it to scale above the raging competition in the financial technology industry. It is not ready to lose ground to any fintech company that has been gearing to take over the payment processing market.
SWIFT may be setting a pace for other payment processing networks that have been threatened by the emerging
blockchain based financial technology companies. These are likely going to follow SWIFT steps in launching their own blockchain-based processing system.