SWIFT has published a standard for ‘Pay Later’ Application Programming Interfaces (APIs), moving the industry closer to adoption of a new consumer payment model.

Pay Later offers customers the ability to use traditional bank loan financing to pay for goods purchased online. Customers are provided with available loans from their banks; they can then select and initiate a loan, knowing that the funds can immediately be credited to the merchants and items dispatched.

SWIFT stated that using this single standard, merchants will be able to implement the Pay Later option, ensuring they are able to reach multiple banks around the world and avoid multiple costly implementations.

The working group on the Pay Later API standard included banks, merchants and technology providers, working to evolve the standard API specifications and rulebook.

By re-using business definitions from the established ISO 20022 messaging standard that it manages, SWIFT can ensure that data specified in APIs is compatible with the messages used to clear and settle instant payments.

With the publication for version one of the specification, multiple participants, including merchants, marketplaces, FinTechs and banks will be able to begin working on live pilots.

Tony McLaughlin, managing director for treasury and trade solutions at Citi, said that the launch of Pay Later API will support banks’ transition into the world of digital platforms.

“The API will enable banks to maintain the vital lending relationship, whilst driving growth of the global digital economy,” he added.

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