4 Oct 2002: Swift Launches XML-Based Payments Initiative

The Society for Worldwide Interbank Financial Telecommunication (SWIFT) has signed agreements with integration software providers WebMethods and Cape Clear Software that will allow it to offer its 7,000 member institutions XML-based payments and cash reporting facilities.

The two partnerships are part of Swift’s initiative to migrate from its existing X.25 network to the new SwiftNet IP network, which uses XML as its messaging format. This replaces the partnership Swift previously had with the now defunct Global Crossing. Swift announced a similar relationship with Iona Technologies in August, to promote messaging standard proposals and technical guidelines.

The WebMethods software will be used to connect financial institutions to their corporate customers through an online payment system. This process currently uses a combination of electronic and manual processes. The WebMethods system will allow banks to connect with their customers’ back-end systems, allowing corporate customers to link their payment systems with their supply chain management and ERP systems.

Cape Clear, meanwhile, will provide closed user groups for banks and their customers, beginning with an XML application for cash reporting. The Cape Clear applications use Web Services standards like XML, SOAP and UDDI to link with Swift’s member institutions.

Next month, SWIFT expects to complete the one-year implementation of its new XML messaging standard, ISO 15022, which replaces two earlier standards for communications between industry members, ISO 7775 and ISO 11521.