For decades, SWIFT has been the backbone of cross-border payments. However, rising customer expectations, geopolitical risks, and new regulatory requirements are rapidly changing the market. Although SWIFT is responding to increasing demands for transparency and speed with gpi and SWIFT go, powerful alternatives are emerging in parallel: Mastercard XB Services, Visa Direct, Wise Payments Network, and Circle Payments Network are just a few of the providers offering alternatives with very different approaches and focuses. These new infrastructures promise shorter settlement times, lower costs, and better customer experience—especially in retail banking.
Key Takeaways
Cross-border payments are changing: alternatives to SWIFT are emerging.
In the future, banks will have to use multiple routes in parallel to optimize costs, speed, and accessibility.
The integration of alternative networks requires network-agnostic orchestration with clear interfaces, format competencies, and intelligent control.
Cross-border payments are facing radical change. In addition to SWIFT, new networks such as private settlement networks, CBDC networks, and tokenized networks are emerging. For banks, this means that flexibility is becoming a must—those who master multiple networks gain efficiency, resilience, and customer proximity.
Cross-border payments on the move
Alternative routing – more than just a backup route
“Alternative routing” is no longer a stopgap solution, but rather a strategic component of modern payment transaction architecture. In the future, banks will need to be able to dynamically decide which channel is best for which payment – depending on costs, speed, currency, or destination region. Intelligent routing is thus becoming a real competitive factor. These days, private customers in particular expect cost-effective end-to-end transparency. Access to SWIFT alone is no longer sufficient for this.
Technological empowerment is the key
To master this diversity, banks need systems that incorporate multichannel capability at their core. This includes:
- Support for different formats and protocols (e.g., ISO 20022, proprietary APIs, blockchains)
- Support for new payout options in addition to account-to-account transfers
- Flexible routing logic to select the best route
- Flexible condition models
- End-to-end transparency regarding status and settlement
Payment platforms make it possible to integrate new networks without jeopardizing existing processes. On the contrary, they can also use the complex integration of payment transactions into the banking infrastructure for transactions in the new networks. This enables banks to orchestrate multiple payment methods – from traditional channels to distributed ledger technologies.
For the necessary infrastructure: The TRAVIC-Payment Hub
The transformation in cross-border payments opens opportunities—if the infrastructure can keep up. PPI supports banks in developing routing intelligence, testing new networks, and securely implementing regulatory requirements. Let's discuss what your multi-network payments could look like:
From monopoly to network diversity
With the growing number of networked systems, the role of banks is also changing—from mere users of global standards to active designers of a new network diversity.
This creates opportunities:
- Cost efficiency through targeted use of cheaper networks
- Speed through real-time processing
- Resilience through redundancy
- Innovation through the connection of new providers and new payment options
However, diversity also introduces complexity: routing decisions, regulatory requirements, and operational risks must be managed automatically. The decisive factor is who can set up their systems flexibly enough to quickly integrate new routes.
What banks should do now:
- Review architecture: Is the core system open enough for new networks?
- Launch pilot projects: Test initial use cases with alternative network providers.
- Define routing strategy: Which payments will run through which channel in the future?
- Consider regulatory requirements: New networks bring new requirements for transparency, liability, and data flows.
Conclusion
Alternative routing options will fundamentally change cross-border payments in the coming years. Banks that adapt to this early on will gain technological flexibility, innovative strength, and resilience. The transition from a “single path” to intelligent multi-routing is no longer a vision—it is already a reality. And those who establish the right connections today will set the direction tomorrow.
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