As global commerce evolves, countries have searched for a safe and secure means to get money from one bank account to the other. International transactions often require a network or intermediary institutions to ensure everything goes smoothly. In Europe, it’s called the Society for Worldwide Interbank Financial Telecommunications, (SWIFT)

A SWIFT payment is a type of transfer that allows you to make a payment in any currency to any bank and country around the world.
It is often used to transfer money to countries outside the European Union, but that does not mean that you cannot use it to send funds between EU member states.

If you run an e-commerce business that has operations all over the world, chances are that you would most likely send payments via SWIFT to your suppliers and your customers.
An international boarding school in Europe that has students from all over the world, would have to receive some payments via SWIFT.

Many SaaS B2B/B2C payment solutions, including Fincra, have incorporated SWIFT payments into their payments infrastructure, to facilitate payments for merchants and customers all over the world.

What is a SWIFT code?

When you use SWIFT, you are not actually sending a money transfer. Instead, it is referred to as a “payment order” between two banks. This is done using a SWIFT code.
It was the SWIFT network that standardized the formats for IBAN (international bank account numbers) and BIC ( bank identifier codes). SWIFT owns and administers the BIC system. This means it can identify a bank in seconds and send a secure payment quickly.
A unique SWIFT code is comprised of 8 or 11 characters. Other names for this same code include:

Bank identifier code (BIC)
SWIFT ID
ISO9362

Example of a SWIFT Code
An example of a SWIFT code  for the Nordea Bank in Denmark is NDEADKKKXXX
The first four characters (NDEA) is the bank code. The next two characters (DK) is the country code for Denmark. Then the next two characters (KK) stand for the bank’s location or city code. The last three characters (which you do not see here) are optional, they represent the code for specific bank branches.

How do SWIFT codes work?
Each financial institution has its own unique SWIFT code, using these codes helps ensure the money you’re sending (or receiving) by wire gets to the specific account it’s intended for.

Say you have a fashion retail business in Italy, and you want to wire 5,000 EUR to your manufacturer in Estonia through Fincra’s payment infrastructure, you ensure you have a funded  virtual account in EUR on our platform, next you choose the SWIFT payment option and fill in the required information:
Beneficiary name
Beneficiary email address
Bank account number/IBAN
SWIFT code
Bank sort code
After filling in all the information above, you would click on “send” and your payment will start processing.
You can watch a detailed tutorial on how to make payouts (transfers) using Fincra on our YouTube Channel

Conclusion
Using a secure and reliable B2B/B2C payments infrastructure such as Fincra helps to process payments with ease while reducing the headaches associated with traditional banking. International and local payouts (transfers) are made simple with the use of Fincra’s named virtual accounts in GBP, EUR and NGN, global merchants can make and receive payments globally without accruing any hidden fees.
With Fincra, you have the assurance of security, as you and your customers’ information is in safe hands.

Currently, Fincra offers online and offline payment solutions to global businesses, fintechs, institutions, and business platforms, as well as payment management capabilities for themselves and their customers across the globe.

Through our reliable infrastructure, fintech and financial institutions can scale globally and build payment solutions for the future with our easy to integrate API keys for payouts and collections, to enable them perform transactions with ease and provide their customers with a better payment experience.

Fincra also provides white-label agency banking solutions to aid financial inclusivity and bring banking services to customers at the last mile. Through our infrastructure, financial institutions and businesses are able to provide banking solutions to their customers at their convenience.

You can also give our products a quick spin by signing up for a demo here: https://sandbox.fincra.com/auth/signup