A complete guide to SWIFT payments

The SWIFT international payment system is still considered by many to be the backbone of secure global transactions, connecting over 11,000 financial institutions across more than 200 countries. It facilitates secure payments by enabling banks to exchange payment instructions through a standardized messaging network.

Understanding how SWIFT payment works is key for any business handling international transactions. SWIFT doesn’t transfer funds directly—instead, it relays payment information between institutions, ensuring accuracy, speed (relatively speaking), and security. It supports various entities beyond banks, including foreign exchange services and brokers.

Thanks to its global reach and reliability, especially in a lot of emerging economies and developing countries, SWIFT cross-border payments is still a widely used method for moving money between countries. Whether sending or receiving funds, SWIFT payments allow customers to transact with confidence, regardless of bank or currency. At Payoneer, we use SWIFT to help ecommerce businesses streamline their international payment processes effectively.

The current state of SWIFT payments

As of 2025, SWIFT remains one of the most widely used systems for international payments, but it is no longer the most efficient. While the SWIFT international payment system still connects over 11,000 institutions globally, it’s often criticized for its complexity, reliance on intermediary banks, and lack of real-time processing.

SWIFT payments continue to process trillions globally, but newer technologies and competitors such as blockchain-based transfers and real-time cross-border payment services are beginning to outpace it, most notably in terms of speed and transparency.

Efforts like SWIFT GPI (Global Payments Innovation) have improved some aspects of how SWIFT payment works, with faster processing and tracking, yet most payments still take 1–4 business days. In 2025, the mandatory migration to ISO 20022 is underway, offering better data and formatting, but it’s not enough to solve those core limitations.

For many users, especially businesses making regular swift cross-border payments, SWIFT remains a trusted but aging infrastructure. Reliable, yes, but no longer cutting edge.

So, what is a SWIFT code used for?

A SWIFT code, also known as a BIC (Bank Identifier Code), is a unique code used to identify the country, bank, and branch associated with a specific account. It is essential when sending money internationally to ensure it reaches the correct destination. SWIFT codes serve as the foundation of the entire SWIFT system, providing a unique identification number for banks, branches, cities, and countries.

Understanding the purpose of a SWIFT code

A SWIFT code identifies the receiving bank, branch, city, and country for an associated account. It is sometimes referred to as a SWIFT ID, bank identifier code, or ISO 9362 code.

This code is essential for making secure payments across international borders. It identifies the exact bank and branch where the recipient’s account is held, ensuring money transfers are processed accurately and efficiently. This is a critical component of how SWIFT payment works, especially for businesses and individuals sending funds globally.

As part of the SWIFT international payment system, these codes eliminate confusion by providing a unique identifier for each institution. Whether you’re making personal transfers or managing corporate finances, including a correct SWIFT code is key to avoiding delays or rejections.

SWIFT codes enable banks around the world to communicate transaction details clearly and securely, making global money movement seamless. Understanding and using the right SWIFT code helps ensure your international payments reach the correct destination without hassle.

When sending a bank transfer to family or friends in another country, a SWIFT code is required. It ensures that the money is directed to the correct country, bank, and branch associated with the recipient’s account. Without a SWIFT code, the bank transfer may not reach the intended destination.

Quick facts about SWIFT

• Over 1 million ISO 20022 payments daily: As of December 2024, SWIFT processes more than one million ISO 20022‑formatted messages per day, marking a major shift in how SWIFT cross‑border payments are structured.
• 100% SwiftNet availability: In February 2025, both FIN Core Global and SwiftNet Core Global services reported 100% availability year-to-date. ​
• Over 200 countries and territories connected: SWIFT’s network spans more than 200 countries and territories, facilitating global financial transactions. ​
• 11,500+ institutions connected: The network connects over 11,500 banking and securities organizations, market infrastructures, and corporate customers worldwide. ​
• 90% of cross-border payments processed within an hour: As of October 2024, 90% of cross-border payments sent over the SWIFT network reached the destination bank within an hour, surpassing the G20’s target of 75% by 2027. ​
• 49.1% of payments in U.S. dollars: In August 2024, the U.S. dollar accounted for 49.1% of payments processed on SWIFT, followed by the Euro at 21.6%. ​

Sources: Pymnts, SWIFT, Statista, IBM, Businesswire. 

SWIFT vs. IBAN: what’s the difference?

When making international transactions, it’s essential to understand the distinction between SWIFT codes and IBANs. Both are key to how SWIFT payment works, but they serve different roles in the swift international payment system.

A SWIFT code, or BIC, identifies the recipient’s bank and branch. It plays a crucial role in swift cross-border payments, ensuring messages are correctly routed between financial institutions. This global identifier makes SWIFT payments possible by accurately directing payment instructions.

SWIFT codes and BIC codes are part of the ISO 9362 standards used for international money transfers. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication, while BIC represents Bank Identifier Code. Both codes are employed globally to identify bank branches, ensuring the accurate and secure transfer of funds.

In contrast, an IBAN (International Bank Account Number) includes the full account number and adds country-specific information. While the SWIFT code handles the messaging between banks, the IBAN ensures the money reaches the correct account. Together, they make SWIFT international transactions seamless and secure.

It’s important to note that a SWIFT code is distinct from an IBAN code. While a SWIFT code identifies the bank and branch, an IBAN code includes additional information such as the bank account number, bank branch, bank name, country, and city.

Understanding the structure of SWIFT payments

To understand how SWIFT payment works, it’s important to first grasp how SWIFT codes are structured. These codes are central to the SWIFT international payment system and are critical for processing swift payments across borders.

A SWIFT code contains either 8 or 11 characters, arranged in the following format: AAAABBCCDDD. The first four letters represent the bank code, the next two identify the country, followed by two for the city or location. If the code includes 11 characters, the final three specify the individual branch. This structured format ensures precision in SWIFT cross-border payments, eliminating confusion or misrouting.

Here’s a sample of the SWIFT codes from some of the most prominent multinational banks in the world:

Bank Name: HSBC Bank PLC
SWIFT Code/BIC: HBUKGB4B

Bank Name: Deutsche Bank AG
SWIFT Code/BIC: DEUTGB2L

Bank Name: Lloyds Bank PLC
SWIFT Code/BIC: LOYDGB2L

Bank Name: Bank of America N.A.
SWIFT Code/BIC: BOFAUS3N

By standardizing this structure globally, the SWIFT international payment system allows banks and financial institutions to communicate quickly and clearly, making swift payments efficient and traceable. Understanding this format is key to avoiding delays and ensuring your SWIFT cross-border payments reach the right recipient without errors.

It’s important to remember, however, that while a SWIFT code identifies the bank and sometimes the branch, it doesn’t provide specific information about the receiving account. To complete an international payment through SWIFT, you also need to provide the recipient’s name, account number, and the receiving bank’s name and address.

Where to find a SWIFT code

The quickest way to find a SWIFT code is to check your bank statements or log in to your online banking portal. SWIFT codes are often clearly listed alongside your account details or in the wire transfer section.

Alternatively, you can also visit your bank’s official website. Many banks include SWIFT codes in their international payments or FAQ sections, and some offer search tools to help you find the right code for your branch. Make sure the code you find matches the specific branch tied to your account.

How SWIFT payments work

The SWIFT international payment system operates through a global messaging network that transmits instructions between banks to facilitate international money transfers. At the heart of this system are Nostro and Vostro accounts. These are paired accounts banks maintain with one another in order to settle payments in foreign currencies.

A Nostro account (“our account with you”) is a bank’s foreign currency account held with another bank. For example, if Bank A in the UK holds an account in euros with Bank B in Germany, this is Bank A’s Nostro and Bank B’s Vostro (meaning “your account with us”). These mirrored accounts enable banks to send and receive funds without physically moving money.

When two banks have a direct relationship and maintain Nostro/Vostro accounts, the SWIFT payment process is relatively fast: funds are debited from the sender’s account, instructions are sent via SWIFT, and the recipient bank credits the receiver.

If no direct link exists, banks use intermediary banks, which have relationships with both the sender and recipient banks. Payments may pass through one or more intermediaries, adding time and fees to the process. This layered routing system is one reason why SWIFT cross-border payments, though reliable, are not always the fastest or cheapest method.

How to make a SWIFT payment

Making a SWIFT payment starts with collecting the recipient’s full bank details: name, account number or IBAN, bank name, and the correct SWIFT code. These details ensure your transaction is routed correctly through the SWIFT international payment system.

Once you initiate the transfer—either online or at your bank—the SWIFT code identifies the recipient bank, allowing your payment instructions to pass securely through the global messaging network. In many cases, intermediary banks may help complete the transaction.

Knowing how SWIFT payment works at this step-by-step level helps businesses and individuals avoid delays and ensures their SWIFT payments are secure and properly delivered.

How long do SWIFT payments take?

Typically, SWIFT cross-border payments take 1 to 4 working days to complete. Processing times depend on several factors: the countries involved, time zones, number of intermediary banks, and local bank policies.

Thanks to innovations like SWIFT GPI, over 90% of SWIFT payments are now processed within an hour. However, standard transactions may still face delays due to weekends, holidays, or compliance checks.

Understanding how SWIFT payment works, including realistic timeframes, can help you plan ahead and avoid missed deadlines or late penalties.

Fees involved in SWIFT cross-border payments

SWIFT payments often come with a range of fees, which can vary based on the banks involved, the currencies used, and the countries in question. One of the most common charges is the outgoing wire transfer fee, applied by the sender’s bank to process and initiate the transfer. On the receiving end, the recipient’s bank may charge an incoming payment fee for handling and crediting the funds.

If the payment involves currency conversion, a foreign exchange (FX) fee is also applied. These FX fees vary widely and often include a markup on the mid-market exchange rate, making international transfers more expensive than they may initially appear. Additionally, a SWIFT tracing fee might be charged if the sender requests an investigation into a delayed or missing payment.

Another factor to consider is the use of intermediary banks. When the sender and recipient banks don’t have a direct relationship, the payment must pass through one or more correspondent banks, each of which may deduct its own handling fee from the transfer amount.

Payoneer simplifies this process for its users. While Payoneer leverages the SWIFT network to send funds to local banks, incoming payments to your Payoneer account from marketplaces or clients typically don’t carry SWIFT fees. However, withdrawal to a bank via SWIFT may incur a small fee depending on your country and currency. Always review Payoneer’s fee schedule to stay informed.

The Payoneer SWIFT code

Payoneer’s official code for SWIFT payments is PAYNUS33XXX, which identifies its U.S.-based banking partner used for international transactions. This code is mainly used by clients who receive payments from abroad into their Payoneer accounts, especially when the sender requires a SWIFT code to complete a bank transfer in USD. It enables Payoneer users, including freelancers, contractors, and small businesses, to receive SWIFT cross-border payments into their Payoneer accounts from companies and marketplaces that operate within the traditional banking system.

While most Payoneer users receive payments through receiving accounts without needing to share a SWIFT code, some clients (particularly in regions with strict banking requirements or high-value international wire transfers) may need to provide it. This is especially relevant for businesses working with corporate clients or large institutions that require a SWIFT code for compliance and documentation. In these cases, the Payoneer SWIFT code ensures the transaction flows through the SWIFT international payment system securely and accurately, allowing users to take advantage of SWIFT payments even when dealing with more rigid financial systems.

For example, imagine you’re a freelance developer in Argentina working with a U.S.-based tech company. The company prefers to pay via traditional bank wire in USD and requests your bank details including a SWIFT code. Instead of setting up a direct U.S. bank account, you would use their Payoneer receiving account and provide the SWIFT code PAYNUS33XXX. The payment is routed through the SWIFT international payment system and credited to your Payoneer account, which you can then use to withdraw the funds locally in Argentine pesos.

This setup enables smooth and reliable SWIFT cross-border payments without you needing a U.S. bank account. For more on how local receiving accounts work, visit Payoneer’s Local Receiving Account page.

Payoneer as alternative to the SWIFT international payment system

While Payoneer integrates with the SWIFT network for certain transfers, it offers a powerful alternative that bypasses many of SWIFT’s limitations. Instead of relying on a chain of intermediary banks and incurring multiple layers of fees, Payoneer enables businesses and freelancers to receive payments directly into their Payoneer accounts from global clients, marketplaces, and platforms with fewer delays and greater transparency. Learn more about getting paid with Payoneer.

For users receiving funds from other platforms or clients abroad, Payoneer provides virtual receiving accounts in multiple currencies (USD, EUR, GBP, etc.), eliminating the need for a traditional international wire. Funds are delivered faster, often at lower cost, and without the need to deal with complex bank routing processes or unclear FX fees.

This makes Payoneer especially appealing to digital professionals, cross-border sellers, and remote teams who need SWIFT cross-border payments without the friction of the legacy banking system. It’s a modern solution that aligns with the real-world demands of global commerce—simple, cost-effective, and built for speed.

Visit the Payoneer account page to start your journey.

Frequently asked questions (FAQs)

1. What is the SWIFT payment system?

The SWIFT payment system (Society for Worldwide Interbank Financial Telecommunication) is a global network that allows banks to securely send and receive international payments. It enables secure payments between institutions using unique SWIFT/BIC codes to route transactions.

2. How do SWIFT payments work with Payoneer?

Payoneer enables clients to receive payments via the SWIFT international payment system by assigning virtual receiving accounts in multiple currencies. Clients send funds to these accounts using a SWIFT code, and the money appears in the user’s Payoneer balance for easy withdrawal or use. Learn more on how Payoneer receiving accounts work.

3. What information is required to receive a SWIFT payment through Payoneer?

You’ll need to provide your Payoneer receiving account details, including bank name, account number, and SWIFT code; your registered name and address; and any additional information the sender requires. Full instructions are available in your Payoneer dashboard.

4. How long does it take to receive a SWIFT payment via Payoneer?

Most SWIFT payments take 1–4 business days. Timing depends on the sender’s country, intermediary banks, and accuracy of details. Time zones, holidays, and compliance checks may also cause delays.

5. What fees are involved with SWIFT payments through Payoneer?

Fees may include intermediary bank deductions, FX fees, and Payoneer’s incoming SWIFT fee depending on your region and currency. You can view full costs on Payoneer’s fee schedule.

6. Can I send money via SWIFT using Payoneer?

Payoneer primarily supports receiving, not sending, SWIFT cross-border payments. You cannot initiate outbound SWIFT transfers directly, but you can send funds to other Payoneer users or withdraw to a local bank.

7. What is the role of intermediary banks in SWIFT payments?

If the sender’s and recipient’s banks don’t have a direct relationship, intermediary banks help process the transfer. These banks may charge fees and can cause slight delays.

8. How secure are SWIFT payments?

SWIFT payments are encrypted and secure, making them one of the most trusted systems for international transfers. However, it’s crucial to double-check recipient details to prevent errors or fraud.

9. How can I find my Payoneer SWIFT code and receiving account info?

Log in to your Payoneer account and go to the “Receive” menu > “Global Payment Service”. You’ll find your SWIFT/BIC code and bank details for each available currency.

10. What are alternatives to SWIFT payments?

Alternatives include Payoneer’s internal transfer system, Wise, PayPal, SEPA (for Eurozone), and local bank systems. However, SWIFT remains the most widely accepted option for high-value, cross-border transactions.