We at Pollen have been preaching about the need for end-to-end tracking of payments since we were founded 3 years ago. Back then, sending a payment was like throwing money into the abyss and praying that your supplier didn’t call you in 5 days time and ask where their money was. From a technical perspective, you received a notification after 14 days to say that nothing had gone wrong, and you presume from that the payment has arrived safely.
Is it too much to ask that when I send a payment I can know when it arrives?
Thanks to SWIFTs GPI (Global Payment Innovation) initiative. DHL for International Payments is finally here.
And as of November 2018, tracking relates to every payment initiated on the network even is the receiving bank hasn’t upgraded their systems. <celebration emoji>
95% of the worlds payments run on the SWIFT network. It’s more of a protocol than a business. A ‘not for profit’ owned by the banks. Think of it like SMTP, with Banks being gmail or hotmail.
They even sound like they’re slightly embarrassed about the situation, and how it’s taken them so long. The following quote is from the head of banking at SWIFT.
“Correspondent banking has been around for a long time and it’s done a good job for many years, but it’s obviously a child of the ’80s and it lacked the transparency and predictability that you really want to see in a modern payments mechanism.”
But that’s the past and this is the future. It’s still far from perfect, as it’s not going to be cheap (£20 plus for the sender) and banks often charge fees (£15 plus) just to receive a SWIFT payment.
That’s why Pollen also offer a ‘Local’ payment method to transfer funds internationally, using national payment schemes via local banking partners to deliver funds. Different methods for different needs.
Pollen will be looking to integrate these capabilities into our platform so that any payment sent will be able to be tracked in real-time by both the payer and payee.
This is a massive step forward for the payment industry and should really help support the current macro trend towards globalisation and frictionless commerce.