Blockchain is continuing to revolutionise the financial system with recent advancements on the SWIFT Global Payments Innovation (GPI) and R3 Corda Settler partnership, making waves in the realm of blockchain payments platforms.
Early this year, SWIFT conducted a proof-of-concept trial with R3 Corda to analyse the feasibility of having GPI payments on a DLT. With aims to connect the GPI Link gateway with R3’s Corda Settler platform to support API’s and monitor payment flows, which proved to be a success.
More recently, SWIFT announced that it will now be allowing blockchain firms to make use of its GPI platform for near real-time payments, which is said to resolve key challenges that currently face payment systems. Through this, the GPI platform aims to improve speed and traceability of payments. Running it on DLT could bring these potential advancements to new levels.
What are the potential benefits this will bring to the world of payments?
This expansion of access for blockchain to further GPI links is considered an “important step towards enterprise blockchain applications to settle off chain using existing, established and trusted payment networks” (Charley Cooper, Managing Director at R3).
A key point to note here is the mention of trust; the immutable nature of the blockchain will ensure augmented trust that will be put into the payments system. Transactions will be harder to alter without detection, fraud will be increasingly easy to detect, tying into detection of attempts at money laundering, due to the element of traceability that the blockchain provides. It will be tamper-evident, making AML safer and records will remain unchangeable unless authorised.
What this means moving forward…
This is a clear starting point for blockchain in the payments sphere and cause for speculation around further implementations; now to wait and see where blockchain takes SWIFT and payments in the future.