The primary purpose of a Payment Confirmation is to provide evidence that a payment has been made and received.
The financial institution receiving the payment.
The issuer of the payment
Cross-border Letters of Credit (LCs) are mainly issued using the Swift network, and in 2022, around 3.2 million LCs were issued.
ISO 20022 is the main standard for financial messaging, with MX messages defined for the Swift network[1], while MT messages are traditional Swift message types.[2]
Payment confirmations can be obtained through various methods, including using the Swift gpi Tracker, which allows banks to track their payment instructions in real-time; Swift interfaces through MT199 messages transitioning to MX formats; batch confirmations; and API calls via the gpi connector. Additionally, an ISO 20022-compliant messaging standard is available to provide confirmations to the Tracker, simplifying the transition from MT.
Payment confirmation today is straightforward, merely verifying a specific sum in a designated account, lacking safeguards against fraud, notably authorised push payment fraud. Some national systems exchange identifiers to help identify beneficiaries, but this approach is confined to domestic schemes. Addressing identity challenges in cross-border payments is a key focus for regulators, financial institutions, and corporations in this space. The ongoing FSB cross-border payments initiative underscores this commitment.
