Swift tests payments abroad with just a phone number
Yesterday, Swift announced it's testing payments abroad with just a phone number, something Revolut users have had for years, but only with each other.
How it works today
- Inside one app it's already easy. Revolut users can pay each other in 30+ countries with just a phone number, free, usually in under 20 seconds
- The moment the other person banks somewhere else, you're back to IBAN, SWIFT code and bank details, and Revolut says international bank transfers generally take 3 to 5 working days
- That's because the payment leaves the app and hops through banks in the middle, called correspondent banks, and each hop can add time and take its fee out of your money
What Swift is changing
- 75% of payments on Swift now reach the receiving bank within 10 minutes
- The new trial uses a phone number or email between any banks, instead of account numbers
- It puts the banks back in the race against apps like Wise, Revolut and Remitly, which is where a lot of people already go to send money abroad
These apps built a private road, fast and free, but both of you have to be on it. Swift is trying to pave the public one.