How do international money transfers work? SWIFT, SEPA and local payouts explained
By SendPay Business · · 2 min read
Money doesn't physically travel when you send it abroad. Banks and payment firms send each other messages and settle up through accounts they hold with each other, or through a provider that already holds money in both countries. Knowing which route a transfer takes explains why some are cheap and fast and others are slow and costly.
Route 1: SWIFT
SWIFT is a secure messaging network linking more than 11,000 banks and financial firms. A SWIFT transfer can pass through one or more middle banks, called correspondent banks, before it arrives, and each can take a fee. That's why a SWIFT payment can arrive short, or take a few days.
Route 2: SEPA
SEPA is the euro payment area. Euro transfers between the EU countries and nearby members such as the UK, Switzerland and Norway go through one shared scheme, usually cheaply, and SEPA Instant can arrive in seconds when both sides support it.
Route 3: local in, local out
Many transfer apps avoid cross-border payments altogether. They collect the money in the sender's country through a local payment, then pay out of an account they already fund in the receiving country, through that country's own fast payment network or a mobile money wallet. Customers see a local payment on both ends.
Where the cost comes from
- The fee shown on screen.
- The exchange rate: most providers add a margin on top of the mid-market rate.
- Fees from middle banks on SWIFT payments.
- Fees for the payout itself, such as cash pickup or a mobile wallet top-up.
What it means if you run a transfer app
Your price is mostly the exchange margin plus your fee, and your costs are what your partners charge for collecting and paying out. The more corridors you serve through local payouts, the cheaper and faster your transfers can be.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
How much does my own transfer cost?
Put the fee and both exchange rates into the calculator to see the real cost, including the hidden rate margin.
Money transfer cost calculator →How do I check a bank's SWIFT code?
The free checker reads a SWIFT or BIC code and tells you the bank country and branch parts.
SWIFT code checker →Can I launch my own transfer app?
Yes. A SendPay money transfer platform, powered by licensed partners, is free to design and preview; you only pay when you publish.
Build a transfer app →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.