What is the difference between SEPA and SWIFT?

SEPA, or the Single Euro Payments Area, is designed for cashless euro transactions within 36 European countries. It allows for quick transfers, typically completed within one business day, using only the recipient's IBAN. SEPA transactions are usually much lower-cost, but then can only process payments in EUR, and can't be sent to places outside the SEPA area.

In contrast, SWIFT (Society for Worldwide Interbank Financial Telecommunication) is a global messaging network used by over 11,000 banks in more than 200 countries. It supports multiple currencies, but it is slower and can take up to five business days for transfers. SWIFT requires more detailed information, including the recipient's bank details and SWIFT/BIC code, and often incurs higher fees, as currencies often need to be processed through local correspondent/intermediary banks.