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6 Things to know about the SWIFT GPI tracker

#1 What is the swift code GPI?

In Swift codes, "GPI" isn't about the usual codes that identify banks. Instead, it stands for Global Payment Innovation, a system created by SWIFT (Society for Worldwide Interbank Financial Telecommunication) to make international payments better. The SWIFT GPI tracker helps banks track payments more clearly and quickly, so they can offer faster and clearer services to their customers

Swift codes, also called BIC codes, are codes made up of letters and numbers that identify specific banks during international transactions. These codes are usually 8 or 11 characters long and show which bank and branch are involved. For example:

Example 1: CHASUS33 (JP Morgan Chase Bank, New York) 

Example 2: HSBCSGSGXXX (HSBC Bank, Singapore)

To find the Swift/BIC code for a particular bank, you can check their official website or contact them directly.

#2 What is a GPI tracker in SWIFT?

A GPI tracker in SWIFT is a tool designed to help banks and their customers track international payments, including outward remittances from India, in real-time. It provides detailed information about the status of payments from initiation to completion, including their location, any associated fees, and the exact time they are credited to the recipient's account. This transparency enables banks and customers to manage cross-border transactions more effectively, ensuring timely and efficient processing of payments

For example, if a company in the United States sends a payment to a supplier in Germany using SWIFT GPI, the GPI tracker would show when the payment was sent, where it is during transit, any fees deducted along the way, and precisely when the supplier receives the funds in their German bank account. This helps both parties monitor and confirm the payment's progress and arrival, improving transparency and reliability in international money transfers.

#3 When was SWIFT GPI launched?

SWIFT GPI has significantly reduced the time it takes for international payments to reach their destination. Traditionally, international transfers could take several days to complete due to the involvement of multiple banks and clearing processes. With SWIFT GPI, many transactions now reach their recipients within minutes or hours, thanks to improved communication and transparency across the global banking network. This speed enhancement has been particularly beneficial for businesses that rely on timely payments to manage their operations efficiently on a global scale.

  • Unique End-to-End Tracking: SWIFT GPI provides a unique UETR (Unique End-to-End Transaction Reference) for each payment, which remains consistent throughout the payment lifecycle. This UETR allows banks and their customers to track the status of payments in real time.
  • Real-Time Visibility: Through the GPI tracker, participants in a transaction can see where the payment is at any given moment, from initiation to final credit to the beneficiary's account. This visibility includes details such as the intermediary banks involved, any fees deducted, and the exact time of each processing step.
  • Enhanced Speed: SWIFT GPI promotes faster processing times for international payments. Transactions that previously took days to settle can now be completed within minutes or hours, depending on the participating banks' capabilities and operational hours.
  • Standardized Service Level Agreements (SLAs): SWIFT GPI introduced SLAs that define maximum timeframes for each processing step in a payment transaction. This ensures predictability and reliability in the delivery of cross-border payments.
  • Integration with Banks' Systems: SWIFT GPI is integrated with banks' internal systems and payment infrastructures, enabling seamless adoption and operation. Banks can enhance their existing payment services with SWIFT GPI functionalities to provide better customer experiences and operational efficiency.
  • Secure Messaging Standards: SWIFT GPI utilizes ISO 20022 messaging standards, which provide a common language for financial messaging and enable rich data exchange between banks. This standardization improves interoperability and reduces errors in payment processing.

#4 Why use SWIFT GPI?

SWIFT GPI (Global Payment Innovation) is favored for several reasons:

  1. Faster Payments: It speeds up international payments, making transactions that used to take days now happen in minutes or hours.
  2. Clear Tracking: You can track payments in real time. This helps banks and their customers see where payments are and when they arrive.
  3. Lower Costs: It reduces the expenses of sending money across borders by improving how payments are routed.
  4. Easy to Understand: The GPI tracker shows details like fees, exchange rates, and how long payments take, making it easier for businesses and banks to make decisions.
  5. Reliability: It sets clear rules for how long payments should take, ensuring they arrive on time.
  6. Worldwide Connections: SWIFT GPI connects many banks globally, making it easier to send money across different countries and currencies.
  7. Safe and Secure: It follows strict rules to keep transactions safe and meet legal requirements.

#5 Which countries use SWIFT GPI?

SWIFT GPI Pros and Cons

SWIFT GPI Pros and Cons by Country

Country Pros Cons
United States Efficient and transparent international payments Potential higher costs for smaller financial institutions
United Kingdom Accelerates cross-border transaction speeds Requires integration with existing banking infrastructures
Singapore Reliable payment tracking throughout transactions Initial setup costs may be required
Sweden Improves payment tracking and transparency Complexity in reconciling transaction data

#6 What is SWIFT GPI semi-automatic?

SWIFT GPI semi-automatic is a feature within the SWIFT GPI system that lets banks manually intervene or add extra information during payment processing, including outward remittance from India. This option is useful when additional validation, manual approvals, or specific instructions are necessary beyond what the automated SWIFT GPI processes handle. 

In essence, while SWIFT GPI is designed to automate and streamline international payments through its standard tracking and processing methods, the semi-automatic feature gives banks the flexibility to handle special cases or unique requirements by allowing them to intervene manually. This ensures that banks can manage such situations effectively while still benefiting from the speed and transparency improvements offered by SWIFT GPI for most transactions.

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