How Long Do SWIFT Payments Take? Insights From 2,000 Payments3rd Edition
This report presents findings from an analysis of 2,000 SWIFT outgoing payments processed through the Statrys platform. We provide multi-currency business accounts supporting 11 different currencies to make payments to more than 80 destinations.
Why did we do this? We want to provide business owners with clear and useful information about sending money internationally.
This report will help you know what to expect when you make global transfers so you can plan better and make smarter decisions for your business.
Our analysis challenges many common perceptions about SWIFT payments and provides a data-driven perspective on what business owners can realistically expect when conducting international transfers.
payment processing time
18h 18m 32s
Same Day Payments
66% of all payments arrive within 24 hours, challenging the common perception that SWIFT transfers always take several days.
Impact of Intermediary Banks
75% of payments involve intermediary banks. Among those, payments with intermediaries average 1 day, 11 hours, 15 minutes while payments without intermediaries average 15 hours, 9 minutes.
Currency and Timing Insights:
USD transfers are slower, while EUR and GBP are faster. Mid-week transfers often process quicker, so aim to avoid Fridays to reduce delays.
SWIFT Payments
Explained: How They
Work
What Is a SWIFT Payment?
A SWIFT payment, also commonly known as a SWIFT transfer, is a form of international money transfer facilitated by the Society for Worldwide Interbank Financial Telecommunication (SWIFT). It involves a message containing payment instructions sent from one bank to another.
These banks can be in different countries, and the payment typically follows a secure and standardised process. Not all SWIFT payments are simple one-to-one transactions; sometimes, intermediary or correspondent banks may also be involved, which can affect both the time and cost associated with the transfer.
Understanding the mechanics of SWIFT payments can provide valuable insights into the duration of these transactions, which is precisely what this article explores.
Before moving to processing time, let’s first understand the basics of the SWIFT network and how banks interact with it.
This interaction largely determines the efficiency of the payment process.
Breakdown of Key Participants
Receives an MT901 from the Receiver’s Bank
Receives MT202 from the Payer’s Bank.
Receives an MT103 from the Payer’s Bank
Plus, Correspondent Banks or Intermediary banks play a significant role. They act as middlemen, helping to move funds between
banks from different countries or dealing with different currencies.
For smooth and safe communication between banks, the SWIFT system uses specific messages, such as:
- MT103: A message from the payer’s bank to the receiver's bank.
- MT202: A message that goes from the payer’s bank to intermediary banks, ensuring funds reach the right destination.
- MT910: A confirmation message indicating a successful credit transfer.
Key Insights
General Timing : How long does a SWIFT payment take?
While it's commonly stated that SWIFT payments take 1-4 working days, the analysis of 2,000 transactions at Statrys tells a different story.
The average SWIFT payment processing time is 18h 18m 32s
The transfer time depends on the destination, time zones, and banking procedures. SWIFT transfers can be quick or slow, as funds must undergo anti-fraud and anti-money laundering checks before reaching the recipient, which adds to the processing time.
Notably, 66% of the SWIFT payments reached the payee account within the same day.
The transfer time depends on the destination, time zones, banking procedures, and anti-fraud and anti-money laundering checks. While SWIFT transfers can be quick, these factors — particularly security checks — may extend processing times.
We'll explore these elements in more detail below.
The Role of Intermediary Banks
How Intermediary Banks Affect SWIFT Payments Transfer Speed
Average transfer time with intermediaries
Average transfer time without intermediaries
1 day 11 hours 15 minutes
15 hours 9 minutes
Our analysis shows that 75% of transactions involved at least one intermediary bank.
On average, payments involve 1.31 intermediaries, meaning most use either one or two, with only a few involving up to four.
Payments involving intermediaries averaged 1 day 11 hours 15 minutes, while transactions bypassing intermediaries were quicker at 15 hours 9 minutes.
USD payments, accounting for 63% of transactions, typically route through J.P. Morgan Chase Bank in the US. This highlights J.P. Morgan's crucial role in facilitating USD payments globally, likely due to its size, expertise, and strong relationships in the international banking system.
Factors Influencing
SWIFT Payment
Processing Times
The time it takes for SWIFT payments to process is influenced by several factors, which are important to understand for effective business planning.
While some factors are beyond a business’s control, there are others that businesses can act on to help manage timing.
Factors Beyond Business Control
Regulatory Compliance Checks
International transfers must undergo strict checks to prevent financial crimes. Each country has its own set of rules, and banks need to follow them carefully. While these are essential for global security, they can sometimes delay automated processing or even require manual reviews. Occasionally, payments may be held or rejected if they don’t meet certain standards.
Country-Specific Capital Control
Some countries have extra rules for international transfers, which can cause delays. For example, SWIFT payments to India take about 3 days on average, compared to the overall average of 18 hours. This is because India has strict controls on foreign funds entering the country. Often, the Reserve Bank of India needs to approve these transfers, adding extra time to the process.
Technology and System Limitations
While many banks have modernised their systems, some institutions handling cross-border payments still use outdated technology. These outdated systems often process transactions in batches rather than immediately and can’t monitor payments in real-time. As a result, they are slower at handling international transactions and struggle to adopt newer, faster payment methods. This technology gap often leads to delays in SWIFT payments, especially when transfers involve banks that don’t have modern capabilities.
Size and Capabilities of Financial Institutions
Larger financial institutions usually process payments faster. They have more resources to handle high transaction volumes and maintain direct relationships with other banks, reducing the need for intermediaries. Their systems typically align well with international standards and are more efficient and better equipped to manage complex and evolving regulations.
Factors Businesses Can Influence
Payment Information Details
SWIFT transactions are instructions from a payer's bank to a receiving bank to transfer funds to a beneficiary. They rely on precise information provided by the sender. This includes:
Providing complete and correct details helps ensure your international payment is processed efficiently and reaches the intended recipient without delays.
Payment Timing: Does Day Matter?
Since SWIFT payments are processed only on weekdays during regular working hours, does the day the payment is initiated affect processing times? To explore this, we analysed how the weekday of initiation impacts SWIFT payments, both with and without intermediary banks:
SWIFT payments initiated on Fridays often take longer to reach the recipient as they may not be processed until the following Monday.
While mid-week transactions may clear faster, no single factor guarantees speed. Time zone differences combined with the weekend effect can cause further delays.
Impact of Currency Choice
How does currency choice affect processing time, especially when payments are sent and received in the same currency? To answer this, we analysed SWIFT payments based on both the currency sent and the currency received:
Average Processing Times of SWIFT Payments Made and Received in the Same Currency
CHF
JPY
AUD
USD
CAD
EUR
GBPWhat about cross-currency transfers?
Currency choice plays a role in transfer speeds. Commonly traded currencies like USD, EUR and GBP tend to clear faster due to high liquidity and direct banking relationships, often completed within 24 hours.
Less frequently traded currencies, such as CHF and JPY, may require additional routing, which can delay processing. For time-sensitive transactions, businesses should consider using widely traded currencies to expedite transfers when possible.
Average Processing Times of SWIFT Payments Made and Received in Different Currencies
EUR
GBPEURUSDGBPEURUSDEURUSDGBPRecommendations
Businesses can encounter several challenges due to delayed payments:
Cash Flow Instability
Every business, particularly smaller ones, needs a steady cash flow to handle expenses and costs. Delayed payments can disrupt financial stability, making it difficult to cover expenses, pay bills, or maintain steady operations. In some cases, businesses might need to seek additional financing, like loans, to bridge the gap caused by unpredictable payments.
Supply Chain Disruptions
Timely payments are often required to start shipping from international suppliers. Sometimes, the supplier will only ship your orders if they receive at least a partial, if not full, payment upfront.
Additional Costs
Businesses may incur extra charges from financial institutions if they need to amend or expedite payments to address delays. Delays can result in unexpected fees, including potential penalties for failing to meet contractual obligations.
Missed Business Opportunities
In certain sectors, securing deals often depends on the speed of payment. Faster payments can lead to better opportunities by ensuring that businesses are able to act quickly when needed.
To minimise these risks, businesses can take the following steps:
Ensure Payment Information is Accurate
Double-check all payment details to avoid delays due to errors or incomplete information.
Use Widely Traded Currencies for Urgent Transfers
Where possible, select commonly traded currencies like USD or EUR for time-sensitive payments, as these generally process faster.
Be Aware of Destination Country Regulations
Understand the regulatory environment of the recipient country to anticipate potential delays due to compliance checks.
Consider Alternatives to SWIFT
For certain international transfers, local payment methods, such as FPS in Hong Kong, SEPA in Europe Faster Payments in the UK, and ACH in the United States, frequently provide same-day processing and lower fees compared to SWIFT transfers. Check with your payment provider to see which alternatives are available for your international transactions, as they could potentially save you time and money.
Conclusion
Good news: SWIFT transfers are often quicker than you might think. On average, they take about 18 hours to process, and two-thirds of them arrive within a day. However, 75% of the time, intermediary banks play a role. While this doesn't always slow things down, it can occasionally extend processing times.
To optimize international payment strategies, businesses should carefully consider factors such as destination, time zone differences, and banking procedures. In addition, it's crucial to remember that anti-fraud and anti-money laundering checks are non-negotiable parts of the process. These security measures, while essential, can add to the overall timeframe.
By keeping these insights in mind, businesses can better anticipate processing times and take steps to streamline future international transfers.
How We Conducted The Study
USAEURGBPJPYAUDCHFCAD
