How long do Swift transfers take?

The Swift network covers more than 220 countries and territories. Of course, some countries receive many more cross-border payments than others. Taking the 40 countries that receive the most payments over Swift, we know that in almost all cases, 80-90% of payments arrive at the destination bank within an hour. And all but two countries are above 75% - significant because that is the target the G20 has set for one-hour end-to-end settlement by 2027.

There are more than 11,500 banks, financial institutions and corporates connected to Swift across the world, sending millions of messages across the network each day. Contrary to the popular belief that cross-border payments involves long chains of intermediary banks, 86% of payments sent over Swift are either direct between two points, or have just one intermediary involved.

What’s more, most intermediaries have automated systems, and so when a payment does need to pass through one, very little time is added to the overall processing time.

Why does it take longer to reach the customer’s account?

While 90% of payments over Swift reach the end bank within an hour, the proportion of payments reaching the end customer’s account in this timeframe is significantly less, at 43%.

In simple terms, Swift can be thought of like an airline – responsible for transporting messages between hubs (banks). When you travel internationally, various factors impact the time it will take you to reach your hotel or accommodation from the airport. Maybe there’s a queue for a taxi, or maybe the local trains are experiencing delays.

What happens after Swift delivers a message to the destination bank also depends on a number of factors. Different countries have different rules that banks need to follow before crediting a customer’s account with money received from abroad.

Where payments are fast to arrive, the receiving bank typically has back offices that operate 24/7, in a country with no significant FX or currency controls in place. Indeed, most payment processing in these markets will be automated.

For countries where it takes longer to credit a customer account, there are a number of factors that could be at play. Where payments are processed manually, it might be that systems and offices are closed, so time zone can be an issue. Local market practices, or regulatory requirements, can have a significant impact. For example, in some markets, the bank needs to contact the receiving customer to confirm the amount and that the payment is expected.

How is Swift working to improve cross-border payment speeds?

Swift is working to enhance the speeds and remove obstacles from the payments process. It has developed products to help ensure information is accurate – for example, that inform senders if the beneficiary information they have entered may not be accurate, before they send it. But it’s clear from the data above that where delays occur in cross-border payments is after a Swift message has been delivered to a bank. Swift is committed to working with all stakeholders – banks and policymakers – to enhance the last stage of a cross-border payment so that every customer can enjoy an enhanced experience.