SEPA & SWIFT Payments - What is the difference? - Service
Because of the rapid globalization, many people need to be able to transfer money internationally or at least across certain regions. There are usually plenty of solutions for money transactions within a c...
Description of the Service
Because of the rapid globalization, many people need to be able to transfer money internationally or at least across certain regions. There are usually plenty of solutions for money transactions within a country. Everyone uses such transfers for purchasing products and services online or sending money to other people. However, more global financial transactions require special solutions. For this purpose, SEPA/SWIFT wire transfers are commonly used.
Both payment methods are strictly regulated and protected to ensure maximum safety of financial transactions. Thanks to encryption and official certifications, these systems are highly secure ways of transferring money both cross-border and internationally. However, there are some differences that might determine whether SEPA or SWIFT is more convenient in a particular case.
The Main Differences between SEPA and SWIFT Payment Methods
To get a better understanding of each method, it is essential to look at their meaning. SWIFT means “Society for Worldwide Interbank Financial Telecommunication,” whereas the SEPA abbreviation stands for “Single Europe Payments Area”.
Immediately, it becomes clear that SWIFT is a global initiative while SEPA operates only within Europe. To be precise, 36 European states take part in this program.
The main goal of SWIFT is to provide fast and secure money transfers for people all around the world. The safety measures involved in SWIFT transactions ensure complete privacy and reliability.
Since the majority of European countries use euros as their official currency, SEPA was created to facilitate cross-border financial operations. The idea is to make such money transfers as convenient as if you were making a transaction within your own country.
SWIFT is a perfect solution for international transactions since it allows making transfers in any currency available worldwide. SEPA is suitable for money transactions in euros exclusively. If you live in Europe and only use euros for wire transfers, SEPA might be a more convenient choice for you.