Swift Payment Alternative: Exploring a Modern Solution for Cross-Border Transfers
SWIFT has been the foundation of global payments for decades, connecting banks across borders and powering trillions in international transactions.
For many Indian exporters, freelancers, and digital-first businesses, it remains the default route for receiving payments from overseas clients. However, as India’s cross-border activity expands, with service exports surpassing $340 billion, the need for more agile, transparent, and cost-efficient alternatives is becoming increasingly clear.
While SWIFT is robust and trusted, it can involve intermediary fees, slower settlement times, and limited visibility, especially for smaller businesses looking to move fast.
In this blog, we’ll break down where SWIFT falls short and which modern alternative is helping Indian businesses receive international payments faster, cheaper, and with more control.
Limitations of SWIFT Payments
SWIFT (Society for Worldwide Interbank Financial Telecommunication) is the backbone of global payments. It connects over 11,000 banks in more than 200 countries and is known for its security and reliability.
But when it comes to everyday business needs in 2025, especially for Indian MSMEs and freelancers, SWIFT transfers come with a few practical challenges.
Here’s what to keep in mind:
1. Multiple Fees, Not Always Clear
SWIFT transfers often involve more than one bank. This means you may face
- Sending fees /SWIFT fee of $15-$30, which is levied on the sender, but it is typically passed on the the receiver for business payments.
- Intermediary bank deductions that aren’t always disclosed upfront
- Hidden forex markup of 1–3.5% on currency conversion, meaning if the midmarket exchange rate is 1 USD =INR 86, you might get only INR 84 thanks to the forex markup.
- Some banks may also levy receiving charges of ₹500–₹1,000 when the money hits your account
In short, you might not always get the full amount you’re expecting, and the final landed value isn’t always predictable.
2. Slow Settlements
SWIFT payments can take 3–5 business days, sometimes longer, especially if multiple banks are involved. Delays can happen due to:
- Time zone differences
- Bank holidays
- Manual checks along the route
For businesses with frequent payments or tight cash cycles, this waiting period can slow things down.
3. Extra Steps for Compliance
If you receive international payments in India, you’ll need a Foreign Inward Remittance Advice (FIRA), a document that proves you received money from abroad. It’s required for:
- GST refunds
- Export benefits
- Compliance with FEMA rules
The catch? Most banks don’t issue FIRAs automatically. You often have to raise a request, wait for days, and pay a fee every single time.
Virtual Accounts: A Simpler, Faster Alternative to SWIFT for Global Payments
As international business becomes more digital, virtual accounts are emerging as a smarter alternative to SWIFT, especially for Indian exporters, freelancers, and SaaS founders.
But what exactly are they?
What is a Virtual Account?
Think of a virtual account as your local bank account in a foreign country, without actually having to open one there. You get unique account details like your account number and region-specific details like a US ACH routing number or UK sort code that allow international clients to pay you like a local.
So instead of wiring money through the traditional SWIFT network (which can involve multiple banks, extra fees, and longer delays), your client can just use a simple domestic transfer method like ACH in the US or SEPA in Europe.
How Does This Help You?
- ✅ No SWIFT fees: Since there are no intermediary or correspondent banks involved, you avoid those unpredictable charges.
- ✅ Faster settlements: Funds usually reach your Indian bank account within 1–2 business days, not a week.
- ✅ Better forex rates: Some platforms (like Skydo) convert your USD or EUR at live mid-market rates, with zero hidden markup.
- ✅ Fewer follow-ups: Many platforms also auto-generate FIRA or eBRC, making compliance effortless.
Platforms Offering Virtual Accounts
Today, several fintech platforms offer virtual accounts to Indian businesses, helping them receive USD, EUR, GBP, and other currencies without traditional friction. Skydo is one of them, designed specifically for Indian exporters and freelancers. Others include Wise, Infinity, Payoneer, and PingPong and others, each with different pricing models and features.
If you're looking for a faster, more affordable way to receive global payments, virtual accounts are worth a closer look.
Skydo: A Smarter Alternative to SWIFT for Indian Exporters
For Indian freelancers and businesses, dealing with international payments often means juggling delays, deductions, and paperwork. Skydo offers a cleaner, more transparent alternative to Swift to receive payments without the usual back and forth.
Here’s how it works:
Local virtual accounts in major countries
With Skydo, you get local account details in places like the US, UK, Australia, and Singapore. So if your client is in New York or London, they can just make a domestic transfer, no SWIFT, no middlemen, no confusion.
Superquick settlements, no guessing
Once the money hits your virtual account, it’s converted to INR at live exchange rates (no markup) and lands in your Indian bank account in about 1-2 business days. The pricing? Simple and predictable:
- $19 for payments up to $2,000
- $29 for $2,000–$10,000
- 0.3% if it’s more than $10,000
You end up keeping more
Because there are no surprise deductions or forex games, you often end up saving a good chunk of money, sometimes over ₹10,000 on a $5,000 transfer compared to a typical SWIFT route.
Easy Compliance
Skydo also handles the compliance side. You get FIRA instantly after each payment. No chasing banks. No follow-ups. Just download and go.
Skydo makes cross-border payments faster, cheaper, and stress-free for Indian business owners. It combines ease of use with low costs and clarity, which makes it an ideal SWIFT payment alternative.
Get started with Skydo in just 5 minutes. Sign up now.
