SWIFT Adopts Ripple’s Playbook — But Without Replacing Banks

Core Viewpoint - SWIFT is launching a new global payments scheme aimed at making cross-border transfers for consumers and small businesses as fast and predictable as domestic payments, with a phased rollout starting in 2026 [1][3]. Group 1: Initiative Details - The new payments scheme will involve more than 40 banks in its development and aims to address issues such as slow delivery, unclear fees, and unpredictable exchange rates in cross-border payments [1][3]. - Participating banks will adhere to a strict rulebook that includes upfront disclosure of fees and foreign exchange rates, guaranteed full-value delivery, and end-to-end visibility on payment status [3][4]. Group 2: Industry Context - The announcement reflects a strategic shift in response to the challenges faced by traditional banking in cross-border retail payments, which have lagged behind domestic payments that settle in seconds [2][5]. - Fintech firms and blockchain-based networks have capitalized on the inefficiencies of the current correspondent banking model, which often results in delays and value loss during international transfers [5].