Financial messaging service provider Swift has made good on a 2010 commitment to reduce fees and will issue more than 30 million euros (U.S. $35.8 million) in rebates to service users worldwide.
Belgium-based Swift plans to pay the rebates in early March of 2015. The rebates are the result of Swift reducing messaging prices by 50% a year earlier than anticipated.
In a seven-year span, Swift has reduced its average price per message from nearly 10 euro cents to 4.5 euro cents, Swift chairman Yawar Shah told attendees at the company's annual Sibos event in September.
Swift provides financial messaging and data exchange for international payments for more than 10,500 banks, securities institutions and corporate customers in more than 200 countries.
"Strong traffic growth and rigorous cost controls allowed us to deliver early on the pricing pledge we set back in 2010," said Andre Boico, head of pricing and analytics at Swift.
The member-owned Swift cooperative envisioned a multi-year strategy that would reduce messaging prices by 30% to 50% over a five-year period, Boico said.
Going forward, a new pricing strategy will again be established as part of the next five-year plan called SWIFT2020, Boico added. "We anticipate that Swift will continue on its price reduction path, but the new pricing strategy will depend on investment plans and priorities," he said.
In the meantime, Swift will consider "targeted pricing actions" to meet specific competitive situations as opportunities arise, Boico said.
FIN is the company's core messaging service that includes daily monitoring, message storage and retrieval, while ensuring financial data is formatted to Swift standards.
In 2014, FIN traffic increased by 10.95%, with Swift recording its peak day on Sept. 30 when it processed 26 million FIN messages. The company ended the year processing a record 5.6 billion messages.
Last month, Swift made its first move into faster domestic payments in Australia, establishing a model it hopes to use in other markets seeking faster payments, including the U.S.
The company bolstered its messaging service in April of 2014 when it launched a new version of its Bankers World Online directory to provide more information attached to international payments.