Swift Introduces Pay Later API for Instant Loan Funding
The Swift interbank payment network offers an API standard that will allow banks to provide instant loan approvals to customers at the point of sale.
“Pay Later” is an instant online payment method that offers customers the option of using traditional bank financing to pay for goods purchased online.
The banking cooperative claims that the transactional finance application programming interface provides merchants with a single standard connection to member banks around the world, avoiding the need for multiple expensive implementations.
Swift members believe the introduction of the interface will help the banking industry make the transition to the world of digital platforms.
Anne Carøe Hald, Global Head of Payment Products at Danske Bank, says: “Pay Later is an opportunity for banks to better serve their customers; to provide appropriate financing where and when customers need it. The ability to deliver services in this way – seamlessly integrated into customers’ online lives – will be essential for banks to thrive in the digital economy.
Swift released version 1.0 of the Pay Later API – which reuses business definitions from the established ISO 20022 messaging standard – with the collaboration of a working group including banks, merchants and technology providers, opening the way to live pilot implementations.