Outward Payment

Outward payment (also known as outward transactions/remittances) refers to the money you send to someone’s bank account in their home country. For example, if you are from the UK and are working from abroad and you send funds for your sibling’s education, on your end, this is an outward payment. 

Depending on your transaction type, location, and currency, you can send money through wire transfer, online transfer, or cash transfer using outward SWIFT or SEPA payments. 

What is SWIFT?

SWIFT (Society Worldwide Interbank Financial Telecommunication) supports over 150 currencies and covers over 200 countries to conduct transactions. It has been the medium for sending international money transfers that facilitate secure communication between financial entities. SWIFT payments typically take 1-5 business days. 

What is SEPA?

In contrast, SEPA (Single Euro Payments Area) comprises the EEA (European Economic Area), Andorra, Isle of Man, Jersey, Monaco, San Marino, Miquelon, Switzerland, the United Kingdom of Great Britain and Northern Ireland (including Gibraltar), the Vatican City, and Saint-Pierre. It’s similar to SWIFT payments but mainly works through Euro-dominated member states, where you can only use Euros as the currency. SEPA payments usually take 1-2 business days for transactions within Europe. 

In addition, BIC (Bank Identifier Code) codes, your bank ID code, are also used to identify banks worldwide whenever money is sent and enable correct transactions between your bank and the recipient’s bank. Hence, they play a critical role in ensuring outward payments are securely completed.