Imagine a scenario: you’re trying to pay your rent in Berlin or send money to Europe for a birthday gift. While doing it, you see a screen asking if you want to use the “SWIFT” or “SEPA” option. This is where knowing the difference matters, especially if you want to avoid unnecessary fees.
Money transfers in Europe can be a complicated subject. Because, despite the EU’s best efforts, the continent is still a patchwork of different “rails.” The Eurozone uses SEPA, the UK relies on its own Faster Payments system, and everything else is often routed through the global SWIFT network.
It matters more than most people expect. Choosing the wrong rail can turn a simple transfer into a slow and expensive international bank transfer, with €20–€40 disappearing into fees. Not to mention, exchange rate markups can be very hefty.
Once you know which rail fits which situation, money transfers in Europe start feeling more predictable. Inside Genome, businesses can use all three options listed for cross-border payments and find out which one to use for particular situations below.
The “big three” payment rails in Europe
If you want to send money to Europe or within it, you need to know about these three systems.
SEPA and SEPA Instant Transfers
If you’re moving euros between EU countries, a SEPA transfer is your best option. It stands for the Single Euro Payments Area, and it’s meant to make euro transfers from Paris to Rome (or other countries in the SEPA zone) as easy as domestic ones.
SEPA Credit Transfers: These are standard SEPA transfers in euros. They take from 4 hours to a day to settle.
SEPA Instant Transfers: It’s an instant bank transfer that usually lands in the receiver’s account within 10 seconds. Although some banks can limit how much you can send via SEPA Instant, it is still a popular choice for transfers among individuals and businesses.
SEPA uses the IBAN (International Bank Account Number). The IBAN number shows the banking system exactly where the money should go: country, bank, and specific account, without needing extra instructions.
Tip: To save on payments, you should use SEPA instead of SWIFT if you are transferring funds in euros.
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Faster Payments
The UK does its own thing. If you need to transfer money to UK accounts in British pounds (GBP), you’ll be using Faster Payments (UK). It’s incredibly quick, but here’s the catch: it only allows GBP. You can’t use it to send euros to France or for a Swiss bank transfer in francs. They are primarily used to transfer money to the UK.
Inside Britain, Faster Payments is the backbone of everyday banking. Transfers in pounds move almost instantly, usually free (some fees may apply, depending on the bank), and use a local account number and sort code rather than an IBAN number.
There is also a CHAPS system (The Clearing House Automated Payment System), which provides secure, same-day transfers, but it is primarily used for high-value payments like taxes or expensive purchases because there is no upper limit.
When it comes to CHAPS vs. Faster Payments, the latter is the way to go for casual GBP transactions.
Problems start when euros are involved. You can’t use Faster Payments to send euros to France or Germany, and UK banks might reroute those transactions via an international bank transfer, often via the SWIFT network. From the user’s perspective, it appears as a single payment. Under the hood, it’s an entirely different process that can be costly.
Tip: only use Faster Payments if you are absolutely sure that you are sending GBP to a beneficiary in the UK.
SWIFT
The SWIFT network (Society for Worldwide Interbank Financial Telecommunication) is the universal connector. When SEPA or Faster Payments aren’t available, SWIFT steps in. It’s global, flexible, and still essential. But it’s also slower and more expensive compared to newer regional money transfer rails.
SWIFT was founded half a century ago by uniting banks from all over the world.
It’s reliable and universal, but still has flaws compared to some other transfer methods, especially when it comes to pricing. If you’re using it for a basic international bank transfer within Europe, you might overpay.
Tip: Use SWIFT for non-euro transfers, and you can’t use any other transfer option. Pay attention to fees.
How do they compare? | SEPA Instant | Faster Payments (UK) | SWIFT network |
Speed | Under 10 seconds | Near-instant | 3–5 Days |
Currency | Euros (€) | Pounds (£) | Almost any currency |
Cost | Usually free for personal, €0.20–€0.30 for business | Usually free, up to £2.50 per transaction for business | Flat $25-50$ plus exchange rate markup plus Intermediary fees: other banks in the chain often deduct $15–$50 USD. |
Regional guide: How different countries move money
Europe’s banking habits change the moment you cross a border. Here’s what’s actually happening on the ground when you try to send money to Europe.
The Eurozone
In places like France, Germany, or Spain, your IBAN number is everything. It’s your digital address. Most people here have forgotten what a “wire transfer” even feels like, because SEPA transfers are so invisible and easy.
Euros move via SEPA transfers, accounts are identified by an IBAN, and domestic apps often sit on top of SEPA Instant without users even realizing it.
If both sender and receiver use euro accounts, SWIFT should never be involved. Most expensive “international” euro transfers inside the Eurozone happen simply because the wrong transfer rail was chosen.
The UK
The UK doesn’t use IBANs for everyday domestic transfers. Instead, it uses a sort code and account number. But UK accounts can also have IBANs for international and euro (SEPA) transfers.
For very large amounts, banks use CHAPS, a separate same-day sterling system.
When currency conversion or cross-border routing is involved, transfers can become slower or more expensive. Especially if the payment is sent via a correspondent/SWIFT-style route.
Use Faster Payments (or CHAPS when time-critical) for GBP transfers within the UK.
Switzerland and Scandinavia
Switzerland uses IBANs. CHF transfers typically run through Switzerland’s domestic system, while EUR transfers can use SEPA transfers. Currency conversion appears when the payment currency doesn’t match the account currency.
Scandinavian countries are among the most cashless, with strong local instant-payment apps. Cross-border transfers still depend on bank rails, and when currencies differ, costs can be hidden in FX. Sweden and Norway are also in the SEPA zone, so EUR transfers can still be sent via SEPA.
Eastern Europe
In Poland or Hungary, it’s a mix: individuals and businesses can use SEPA for EUR transfers, but local-currency payments run on local rails (PLN, HUF). Always double-check which currency you’re sending.
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Digital providers vs. traditional banks
You’ve probably noticed that banking apps are often cheaper than your local bank. It’s becoming a new standard for cross-border payments.
Instead of sending your money across a physical border, they have bank accounts everywhere. When you “send” money, you’re giving euros to their French account, and they’re releasing pounds from their UK account via Faster Payments (UK).
No money actually crosses the border. No massive fees. This is the best way to handle money transfers in Europe without the headache of a traditional international bank transfer.
So, why do banks use SWIFT anyway? Because the SWIFT network is the only system that works everywhere, even if it’s not the best system for most European payments.
Some banks are not directly connected to every local payment network. Being a direct member of systems like SEPA Instant or Faster Payments costs money, requires local licensing, compliance teams, and technical infrastructure. Some banks, especially smaller or older ones, simply don’t have that setup outside their home country.
Critical factors: speed, cost, and limits
Check the transfer rail: If it’s euros, insist on SEPA Credit or SEPA Instant Transfers. Use Faster Payments for casual cross-border payments in pounds or CHAPS for high-volume transactions.
Watch the fees. The exchange rate markup is where hidden costs for transfers can be hidden.
Be aware of limits: SEPA Instant payments can be capped by some banks, while standard SEPA Credit Transfers have no such limits. SWIFT works very differently. In theory, a SWIFT-based international bank transfer has no upper limit. You can move millions in a single transaction, which is why SWIFT is still used for corporate payments, treasury operations, and large asset purchases. The trade-off is speed and cost: it would take days, involve multiple correspondent banks, and be subject to manual compliance checks along the way.
From a security perspective, all systems are regulated and encrypted. The difference is timing and cost.
In short, if you need instant bank transfers, SEPA and Faster Payments are your best friends. If you need to move very large sums in USD or other non-euro non-GBP currency, and you don’t care about timing, SWIFT is still the fallback.
The best part: no matter which option you want to use, Genome offers all of them to its business clients.
SEPA Credit and Instant Transfers are always accessible to companies: they can use them for everyday business transactions with ease.
Not only that, but Genome’s merchants can accept payments from customers via SEPA Instant/Credit Transfers. Our instant bank payments work through Pay-by-Bank: at checkout, the customer selects it and is redirected to their bank app or website to authorize the payment using strong customer authentication (SCA). Once approved, the transfer is processed in real time and can be settled within seconds (when SEPA Instant is used), with immediate confirmation for both the customer and the merchant.
In Genome, international transfers for businesses start once you have your dedicated account details for receiving money from abroad. With those details, payers in 40+ countries can send you funds using the rail that works for them, such as SWIFT, as well as UK rails (Faster Payments, BACS, CHAPS) or euro-area options like TARGET2.
For outgoing international payments, Genome uses an Intelligent Routing System that automatically picks the cheapest and most efficient available route for that specific transfer. SWIFT is the primary default for international payments, but the routing system can switch to alternatives like Faster Payments, CHAPS, or TARGET2 when they fit the destination and currency.
In short, incoming transfers depend on the payer’s chosen system, while outgoing transfers are optimized automatically by Genome’s routing.
