Live productions of this solution using the ISO 20022 financial messaging standards are underway, Standard Chartered announced Wednesday (Aug. 27).
Using Ant’s Alipay+ global wallet gateway services, the first transactions were completed between a Standard Chartered Bank customer account and a partner e-wallet. The solution employs Swift’s network of more than 11,500 financial institutions in 200-plus countries and territories to connect to 1.7 billion user accounts on the 36 global digital wallets in the Alipay+ ecosystem, particularly across fast-growing Asian markets.
“In a world of fast-moving innovation with a growing number of ways to move value, consumers and businesses expect more choice and optionality in their international payments experience,” said Kevin Wong, chief executive for Swift’s Asia Pacific operations.
“Swift is at the forefront of providing a best-in class experience with greater flexibility and choice. This collaboration with Ant International and Standard Chartered reflects that strategic commitment to faster, frictionless payments across multiple networks.”
The partnership comes in the midst of a shift in digital wallet usage among consumers and small businesses, as research by PYMNTS Intelligence has found.
The research found a growing preference for digital wallets when sending and receiving money across borders, particularly among consumers. The study found that 42% of consumers pointed to digital wallets as their top choice, outpacing traditional methods like bank account transfers and money transfer services. The figure was slightly higher among Americans, at 44%.
In addition, close to half of the consumers who don’t use digital wallets for international payments anticipate adopting them for peer-to-peer (P2P) transactions in the near future, “pointing toward further expansion of digital wallet usage in this domain,” PYMNTS wrote.
The chief drivers of this adoption included the perceived speed and growing trust associated with digital wallets.
“However, the burgeoning popularity of digital wallets in cross-border payments presents opportunities and challenges for banks,” PYMNTS wrote in April. “While consumers and businesses embrace the convenience offered by digital wallets, the report found interoperability issues that hinder seamless transactions across different platforms and countries.”
According to the study, 62% of banks in the U.S. and U.K. that are innovating or looking to innovate in cross-border payments plan to do so by teaming up with FinTech companies. The key factor behind these partnerships is the need for faster payment processing.