Worldwide Interbank Financial Telecommunications (SWIFT) and Single Euro Payments Area (SEPA) are two most widely used forms of cross-border transfers. Both payment service providers were created to provide a secure and reliable international channel for ever-increasing money transfers.

What is the main difference between SWIFT and SEPA?

The main difference between SWIFT and SEPA is the geographical scope. SWIFT supports international transfers in different currencies across the world, whereas SEPA only enables money transfers in Euro in countries that are members of the SEPA zone. The size of both networks differs. SEPA payments are pan-European transfers among 36 countries, but SWIFT is globally distributed and used by 11 000 banks and financial institutions in more than 200 countries. Availability on a global scale is also the main advantage of SWIFT because the network is used by correspondent banks and financial institutions that don’t have a direct connection to SWIFT.

Another perspective that makes the difference is that SEPA means fast, convenient and hassle-free payments. SEPA transfers do not require Bank Identifier Codes (BIC), also known as SWIFT codes, and other bank details, but for SWIFT payments it is necessary to enter detailed information about the bank and beneficiary to carry out money transfers.

Competitors of SWIFT and SEPA

There are other international payment networks available around the world. In China, there is UnionPay that is the country’s major payment network worldwide. Also, the People’s Bank of China, a central bank in China, has developed the Chinese International Payment System (CIPS) that uses SWIFT messaging and formats. Also, Russia has an alternative to SWIFT. In 2019, System For Transfer Of Financial Messages (SPFS), previously available only in Russia, went global and plans to power banks and financial institutions in the Eurasian Economic Union (EAEU). The latest addition to international payment networks is RippleNet and Stellar Network that are built on blockchain technologies and offer an affordable solution for international payments.


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