SEPA vs. SWIFT transfers: key differences explained

SEPA (Single Euro Payments Area) is a European payment scheme that enables euro transactions across participating countries, making domestic-style transfers possible across borders. It’s designed for payments in EUR between bank accounts held at a bank in the SEPA zone. It has rules around formats, timelines, and fees, especially for SEPA payments.

SWIFT (Society for Worldwide Interbank Financial Telecommunications), by contrast, is a global messaging network used by financial institutions to route payment instructions worldwide. It’s often associated with cross-border wires and correspondent chains, which is why swift payments can involve more intermediaries, variable fees, and less predictable settlement speed.

Businesses often confuse SEPA and SWIFT because both can move money internationally, and both may be initiated from a bank interface. But choosing the right option matters: the method you use can change the total cost (fees and FX markups), speed (same-day vs multi-day), and operational efficiency (reconciliation, reference data quality, and exception handling), especially for international payments.

For EU business accounts, Genome provides SEPA and SWIFT transfers, helping companies send and receive transfers efficiently through their bank account workflow.

What is a SEPA transfer?

A SEPA transfer is a type of euro-denominated bank transfer made within the Single Euro Payments Area (SEPA). It is a standard for euro payments made across multiple European countries. Using it, businesses and individuals can send money in euros, relying on the same basic format and rules, whether the recipient is domestic or in another SEPA country. While SEPA is closely associated with the European Union, the SEPA zone also includes several non-EU countries and territories that follow the same standards.

SEPA is designed for EUR transfers between accounts in SEPA countries and typically offers lower fees and clearer processing timelines than many traditional wire routes. These SEPA payments generally require the recipient’s IBAN (International Bank Account Number), which ensures the transfer can be routed correctly and reconciled efficiently.

There are three main SEPA transfer types:

• SEPA Credit Transfer (SCT). A standard bank transfer in EUR is commonly used for one-off business or personal transactions.

• SEPA Instant (SCT Inst). An instant version of SCT that can settle in seconds (subject to the receiving bank’s participation and limits), which is especially useful when timing matters.

• SEPA Direct Debit (SDD). A payment method that allows a payee to collect funds from a payer’s account with prior authorization, often used for subscriptions and recurring billing.

Businesses sometimes compare SEPA to SWIFT payments, but they solve different problems. SEPA is used for EUR transfers within the SEPA zone. SWIFT is a global messaging network often used for wires beyond it. That’s why people mix up SWIFT and SEPA when thinking about cross-border payments: both can move funds across countries, but they differ in costs, speed, and predictability. For many companies, choosing the right method improves operational efficiency, especially when handling cross-border payments and broader international payments.

What is a SWIFT transfer?

A SWIFT transfer is a type of bank-to-bank payment that uses SWIFT as the secure messaging system behind the scenes. SWIFT doesn’t “move” the funds itself. Instead, it sends standardized instructions between financial institutions so they can complete international transfers safely and consistently. 

SWIFT stands for Society for Worldwide Interbank Financial Telecommunications, and it’s widely used to coordinate international financial transactions across different countries and banking systems.

Because SWIFT is global, it supports multiple currencies and is commonly chosen for B2B payments that need to reach banks outside regional schemes. In everyday terms, SWIFT payments are often what people mean when they say they’re making a wire for international payments in USD, GBP, or other non-euro currencies – or when they need to pay a supplier in a country that isn’t covered by a local transfer framework. It’s also a common route for larger, more complex money transfers that are truly cross-border, especially when a direct banking relationship doesn’t exist.

One thing to know: a SWIFT transfer can involve intermediary (correspondent) banks. Those intermediaries help route the payment, but they can add fees and reduce predictability. That’s why SWIFT payments often cost more than local rails, and why settlement can take longer. Typically, it is 1 to 5 business days for many international payments, depending on time zones, compliance checks, and the banks involved.

Businesses sometimes compare SWIFT and SEPA, but they serve different needs. SEPA focuses on euro transfers within the SEPA area, while SWIFT is designed for global reach. If you’re paying outside that area, SWIFT payments are often the practical option for cross-border routing in a wide range of currencies, even if they’re slower and more expensive than domestic-style alternatives.

SEPA vs. SWIFT: Side-by-side comparison

Feature	SEPA	SWIFT
Currency	Euros only	Most currencies, depending on financial institutions
Geographical scope	SEPA zone	Worldwide
Speed	10 seconds – 1 business day	1-5 days
Fees	On the lower side	Usually on a higher side
Ideal for	EU payments	Global payments

SWIFT and SEPA are both used for cross-border transfers, but they work in different ways and fit different needs.

Speed: In the SEPA system, transfers usually arrive in 1 business day, or in seconds with SEPA Instant. SWIFT transfers typically take 1–5 business days because payments may pass through multiple banks before reaching the recipient.

Fees: SEPA fees are generally very low. SWIFT fees are often higher, especially when intermediary banks charge handling costs.

Currency: SEPA is EUR-only. SWIFT can handle international transactions in almost any major currency.

Countries covered: SEPA is used across 36 European countries. SWIFT reaches 200+ countries worldwide.

Use cases: SEPA is ideal for EU payroll, business payments, and invoices in EUR. SWIFT is better for paying international suppliers and sending cross-currency payments, often requiring a SWIFT code to route the transfer correctly.

SEPA Instant vs. SWIFT

SEPA Instant Transfers are fast SEPA payments: most SEPA Instant payments can settle within about 10 seconds, which makes it great when you need to send money quickly for urgent payouts, marketplace settlements, payroll, or EU e-commerce. It works like modern domestic transfers, moving EUR between local banks in the SEPA area with clear rules and typically lower costs. SWIFT payments are still useful for global reach and multiple currencies, but they’re usually slower and more expensive due to extra processing and possible intermediary banks.

When should a business use SEPA?

A business should use SEPA when it needs to make or receive SEPA payments in EUR within the SEPA system. It’s a great fit if you work with EU-based clients or suppliers, pay teams and partners across Europe, or want predictable processing with low fees. In most cases, most SEPA transfers are straightforward to send and reconcile, as long as the payment details are correct.

Typical SEPA use cases include:

• Paying EU-based suppliers and service providers from your bank account.

• Collecting recurring subscription payments (for example, via direct debit where available).

• Sending the payroll in euros to employees in Europe through your bank.

• Paying contractors across Europe quickly, without complex wire instructions.

• Improving cash flow with faster settlement times and fewer surprise charges than global wires.

To get SEPA right, make sure both the sender and recipient provide accurate details, especially the correct account number (usually an IBAN) and beneficiary info. That helps your bank route the payment smoothly, reduces exceptions, and keeps your operations efficient.

When should a business use SWIFT?

A business should use an international bank transfer via SWIFT payments when it needs to pay or get paid outside the SEPA area, or when the transaction isn’t in EUR. SWIFT is a common choice for global B2B activity because the SWIFT network helps banks exchange payment instructions securely across borders.

Typical use cases include:

• Paying suppliers outside Europe for goods, software, or services.

• Sending non-EUR currencies to partners or vendors (and yes, SWIFT supports multiple currencies).

• Paying global staff or contractors in their local currency.

• Handling large international payments where you need formal wire documentation.

• Supporting FX operations, such as converting currencies and settling invoices internationally.

• Managing cross-border business in markets that don’t support SEPA-style rails.

To send these money transfers, you usually need the recipient’s bank details plus routing information like bank identifier codes (BIC). Many banks also ask for a SWIFT code to identify the receiving institution correctly. Because correspondent banks may be involved, international transfers can take longer and may include extra fees. Thus, it is important to plan ahead when timing and total costs matter.

SEPA and SWIFT transfer fees explained

When it comes to international payments, fees often depend on the payment method: SEPA payments or SWIFT. SEPA is designed for EUR transfers in the SEPA area, so it’s usually low-cost and sometimes even free, depending on your plan and payment service providers. That makes SEPA a go-to option for everyday business money transfers in Europe.

SWIFT is different. It’s a global wire route, and fees can vary a lot because they depend on your own bank, the recipient’s bank, and how the payment is routed. In some cases, there can be multiple intermediary banks involved, which may add lifting fees or unexpected deductions before the funds reach the recipient’s bank. Currency exchange can also increase the total cost: if you’re sending a non-EUR currency, conversion spreads and currency handling fees may apply.

To minimize costs, pick the transfer method that matches the payment type: use SEPA for EUR transfers in the SEPA zone, and use SWIFT only when you truly need global reach. Also, double-check your fee options (shared vs sender-paid vs recipient-paid, if available) and confirm all beneficiary details upfront—clean data speeds up the transfer process and reduces costly repairs. Understanding SWIFT and SEPA differences helps you avoid routing through multiple intermediary banks when a simpler path is available.

How Genome helps businesses with SEPA transfers

Genome helps businesses simplify everyday money transfers and stay flexible when working cross-border. With dedicated EUR IBANs, you can receive and manage EUR flows easily, and handle reliable SEPA transactions through SEPA Credit and SEPA Instant support. That means you can transfer funds to partners, clients, and teams across the SEPA area with clear timelines and smooth reconciliation.

When you need to send money internationally beyond the SEPA zone or in different currencies, Genome also supports SWIFT transfers. Use them for broader financial transactions and send them in different currencies: USD, GBP, EUR, PLN, CHF, JPY, CAD, CZK, HUF, SEK, AUD, and DKK.

Genome’s multi-currency business accounts are designed for modern companies that move fast. EU businesses can benefit from fast onboarding and tools that support growth, including low-cost payments, batch transfers, and API-based integrations for automated payouts. Complete your experience with corporate virtual cards and physical Visa cards, as well as a merchant account of you need to accept payments.

Whether you’re handling routine EUR settlements or expanding to new markets, you can use SEPA for efficient euro transfers and SWIFT for global reach.

And to put it simply: we offer SWIFT and SEPA so you can pick the method that matches your destination, currency, and speed requirements.