RBC & TD launch Swift's new payment scheme in Canada

Royal Bank of Canada and TD Bank Group have gone live with Swift's new international consumer payments initiative, becoming the first banks in Canada to adopt the scheme.

People in Canada receiving money from abroad through participating banks will be able to receive the full amount sent, with fees and exchange rates shown to the sender before confirmation. In many cases, transfers will arrive within minutes, and some may arrive instantly where local banking systems allow.

RBC and TD are also among the first financial institutions globally to implement the initiative. The system is initially available for customers in Canada receiving transfers from Australia and Belgium, with more markets to be added.

The launch brings Canada into a broader effort to improve cross-border retail transfers. More than 60 banks from 25 countries are backing the initiative, which went live this year.

The scheme addresses a long-standing source of frustration for individuals and small businesses receiving money from overseas: uncertain fees, exchange rate costs and settlement delays. Under the new model, the sender sees the charge and exchange rate before approving the transfer, and the recipient should receive the full amount without deductions.

For Canadian banks, the change comes as international money flows become a larger part of everyday banking activity. Nearly one in four people in Canada were born outside the country, according to the announcement, increasing the importance of transfers tied to family support, travel, shopping and cross-border business.

Both banks presented their participation as part of a broader push to modernise cross-border payments and improve certainty for customers.

"RBC is proud to be the first bank in North America to go live with Swift's new initiative - an important step in advancing goals of the G20 Roadmap for modernizing international payments. As Canadian consumers and businesses increasingly expect cross-border payments to be faster, more transparent and more predictable, our early action underscores our commitment to delivering seamless cross-border payment experiences," said Sebastian Becerra, Managing Director, Global Transaction Banking, RBC Capital Markets.

RBC's role is notable because Swift described it as the first bank in North America to launch the service, giving it an early foothold in a market where speed and transparency in international transfers are increasingly competitive issues for banks and payments providers.

TD also linked the move to growing demand from households and businesses with overseas ties.

"As Canada's connections to global markets continue to grow, having access to efficient and transparent cross-border payments becomes increasingly important. TD's participation in the Swift scheme represents an important step in meeting the evolving needs of Canadians and Canadian businesses by enhancing visibility, predictability and confidence throughout the payment journey, and helping deliver a more seamless and secure payments experience," said Christopher Chazin, Managing Director and Head of Transaction Banking Product at TD Securities.

Swift operates the messaging network used by more than 11,500 financial institutions across more than 200 markets. Although it does not hold customer funds or manage accounts, its role in setting standards and connecting banks gives it significant influence over how international payments move between institutions.

Consumer focus

The initiative is aimed at retail and small-business transfers rather than wholesale institutional payments. That reflects rising pressure on banks to make international transfers resemble domestic payments, which in many countries have become near-instant and easier for customers to track and understand.

In cross-border transfers, the route between the sender's bank and the receiving institution can involve multiple intermediaries, each potentially adding cost or delay. A framework that fixes the amount received and discloses charges at the start addresses one of the most common complaints from customers, who otherwise may not know exactly how much will arrive.

The new standards are intended to make international payments more trusted and predictable for both consumers and businesses.

"Canadians increasingly expect international payments to be as transparent and predictable as those made domestically. Swift's new standards help deliver on those expectations. This framework will enable a more trusted cross-border payments experience for businesses and consumers alike," said Leigh Amaro, Chief Executive, Americas at Swift.

The initial launch from Australia and Belgium suggests a phased rollout, with Canadian banks expected to add more origin markets as adoption broadens among overseas institutions. For recipients in Canada, the immediate effect is likely to be most visible in family remittances and small-value business payments, where deductions and delays can have an outsized impact.

Over time, broader participation by banks in more countries will determine whether the model becomes a standard feature of consumer cross-border payments rather than a service limited to selected routes. For now, Canada is one of the first markets where major banks have started using the framework at scale, with more than 60 banks from 25 countries already backing the initiative.