SWIFT: Global payment ecosystem enters new transformation phase

The global payment ecosystem is entering a new stage of transformation, Hikmet Can Yilmazsoy, head of Türkiye, the Caucasus and Central Asia at the Society for Worldwide Interbank Financial Telecommunication (SWIFT), said at the 10th International Banking and Finance Summit in Baku, Report informs.

According to him, international payments are currently undergoing a major transformation.

"This process is even described by some experts as a 'perfect storm.' In reality, the scale of changes taking place in the global payment ecosystem is quite significant. When we look at the key factors driving this transformation, the trends each of us observes in daily life come to the fore. First of all, expectations have increased significantly on the part of both users and regulators. Local instant payment systems play an important role in shaping user expectations. Users who make payments within seconds in 24/7 mode now demand the same speed and convenience in international transfers. On the other hand, the rapid development of the app economy has changed users' approach to the payment experience. People want to make payments through a single interface in the simplest, fastest and most intuitive way possible," he said.

"In addition, against the backdrop of the spread of new business and payment models, a digital-first approach has become one of the main directions in the global financial sector. This trend makes it necessary for international payment infrastructure to be formed on the basis of more flexible, faster and digital solutions."

Yilmazsoy added that, alongside artificial intelligence, DLT, blockchain and digital assets are also rapidly gaining popularity in the technology sector.

"These areas are no longer limited to proof-of-concept, proof-of-value and pilot stages, but are also moving beyond the stage of corporate adoption and entering the real application environment. At the same time, we are seeing broader regulation of digital assets, especially starting with countries that have large and deep financial markets. This process ensures their predictable and responsible integration into the traditional financial system. In this context, there are two main areas that we at SWIFT focus on. The first is the development of existing payment corridors. The other is the creation of infrastructure that will support digital assets, digital currencies and digital value transfers, which are considered the payment corridors of the future.

As we improve today"s payment systems and design the financial architecture of the future along these two parallel lines, one of the key issues we focus on is ensuring their interoperability. The goal is to develop two different ecosystems - the existing and future financial systems - in a compatible and integrated manner," he said.

Yilmazsoy stressed that the transition to a 24/7 real-time model in international payments is on the agenda.

"A new payments structure, which we have been intensively discussing especially since the second quarter and the second half of last year and which is also being reviewed by banks and the Central Bank in Azerbaijan, is on our agenda. The main goal of this structure is to extend the 24/7 real-time experience that our customers and other payment users have in local instant payment systems to international payments as well. In this context, we are focusing on three main areas," he said.