International online money transfers have become an integral part of the global economy. They allow businesses and individuals to send funds across borders quickly and securely. Key players in this process are the SWIFT and SEPA systems. These two approaches simplify transfers, providing security and convenience. In this article, we will look at what SWIFT and SEPA are, their main features, and how they work in the context of international financial transactions.

What is SWIFT?

SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global financial messaging system. It was founded in 1973 and has since become the standard for large international transfers.

Main characteristics of SWIFT :

• Global coverage. The system covers more than 200 countries and thousands of banks.
• Messages instead of money. SWIFT transmits transaction data between banks, but does not transfer the funds themselves.
• Security: High encryption standards make the system reliable.

SWIFT is ideal for large business transactions and transfers in different currencies. For example, international SWIFT transfers allow you to send dollars, euros and other currencies anywhere in the world. To make such a transfer, you need a SWIFT code – a unique identifier of the bank.

What is SEPA?

SEPA (Single Euro Payments Area) was created to simplify settlements in euro currency within the territory of the European Union and the countries of the European Economic Area. It was launched in 2008 and is aimed at standardizing payments within Europe.

Key features of SEPA:

• Works only with euro. All transactions are conducted in a single currency.
• Lower fees. SEPA transfers often cost significantly less than SWIFT.
• Speed: Transactions are usually completed within one business day.

SEPA transfers in Europe are suitable for personal and corporate transactions. For example, to pay for services, purchase goods or transfer wages.

How do SWIFT and SEPA transfers work?

Transfer process via SWIFT:

1. The sender provides the following data: amount, currency, account number and SWIFT code of the recipient bank.
2. The message travels through the SWIFT network, linking the sender and recipient banks.
3. The recipient’s bank credits the funds to the specified account.

Transfer process via SEPA:

• The sender enters the recipient’s account number (IBAN) and the amount in euros.
• Payment is made via the standard SEPA format within one working day.
• Funds are credited to the recipient’s account without the participation of intermediate banks.

The main differences between SWIFT and SEPA are:

• Speed: SEPA is faster, especially for transfers in euros.
• Fees: SWIFT transfer rates and fees are higher due to the global scale.
• Geography: SEPA is limited to Europe, while SWIFT operates worldwide.
• Currency: SEPA only supports the euro, while SWIFT supports many currencies.

Advantages and problems

SWIFT supports multiple currencies, making it convenient for transactions around the world. However, its use can be accompanied by high fees, as well as possible delays, since several banks may be involved in the process. Despite these shortcomings, SWIFT continues to be a reliable tool for international payments.

SEPA, in turn, offers more accessible conditions for transferring funds within Europe. One of the main advantages is the low commission and high speed of processing transactions. SEPA is ideal for those who make regular transfers within the EU, as it simplifies the process and reduces the time it takes to complete transactions. However, the system is limited to the euro only and operates primarily within the European zone.

SWIFT’s limitations include not only high fees, but also delays caused by multiple banks participating in the process. These factors can make the system less convenient for those looking for fast and cheap solutions to transfer funds. It is also important to consider that some currencies may not be supported, which limits its use in specific cases.

SEPA, despite its advantages, has several limitations, such as being only available for euro transactions and limited geographical coverage. This means that users who need to transfer in other currencies or outside of Europe may encounter problems. In such cases, OROPAY may be the best choice, providing a convenient and secure solution for international transfers.

OROPAY offers convenient solutions for transfers via SWIFT and SEPA, combining the advantages of both systems.

Key benefits of OROPAY:

• Competitive rates for SEPA and SWIFT.
• Convenient interface for performing translations.
• High level of data security.

Example: a user can either make a SEPA transfer in euros or send funds via SWIFT in another currency, minimizing fees. Using OROPAY, customers understand how to make an international bank transfer, saving time and money.

SWIFT and SEPA systems play a key role in the global financial system. Each of them has its own characteristics and is suitable for certain needs. However, to optimize the process and reduce costs, it is best to use OROPAY international transfers. OROPAY’s advantages in money transfers include simplicity, security, and accessibility. By choosing OROPAY, you get a convenient tool for international payments.