StoneX, the New York-based firm listed on the Nasdaq under the ticker symbol SNEX, revealed just before the Christmas weekend that it will adopt Swift’s Payment Pre-validation service, aiming to streamline and secure cross-border payments for its clients.
StoneX to Adopt Swift Payment Pre-validation Service
Cross-border payments have notoriously been plagued by complexities, including regulatory hurdles, bank downtime, and rising competition. In addition, inaccurate beneficiary details alone account for nearly a third of failed cross-border transactions, incurring significant costs and delays, according to the financial services company.
Recognising the challenges, Swift said it has introduced its Payment Pre-validation service, which allows pre-emptive verification of beneficiary account details before initiating international payments. The service aims to “reduce errors, expedite transaction speed, and improve straight-through-processing.”
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“Payment Pre-validation utilizes pseudonymized and aggregated data from billions of historic transactions on the Swift network to provide enhanced security and speed in cross-border payments,” said Mireia Guisado Parra, Product Owner of the Payment Pre-validation service at Swift. “We are pleased that StoneX are extending these benefits to more financial institutions, thereby reducing friction in the payments ecosystem.”
StoneX believes Swift’s Payment Pre-validation service offers several key benefits, including real-time verification of beneficiary details, standardised error codes: Quickly identify and address potential issues through predefined error codes before initiating payments, recipient bank BIC verification and Improved data quality.
