The biggest change to payments messaging in a generation
ISO 20022 is the new global payments messaging standard. This globally agreed methodology standardises how businesses interact, process and settle comprehensive payments details.
In the UK, these changes, which SWIFT, the Bank of England and Pay.UK are driving, will be mandatory for all firms exchanging payments information by spring 2023. Further afield, the European Central Bank, the Real-Time Payments Group and P27 are all driving international best practice and interoperability by adopting the standard.
What's changing and why?
Today, major payment systems are held back by the sheer variety of payments messages available – from CHAPS and Faster Payments to the well-known BACs – all operating in their own language. This causes a fragmented, limited and unharmonized system. ISO 20022 corrects this by providing a common language and model for payments data, and the benefits are clear:
ISO 20022 will also reduce the friction in cross-border payments, cut the need for intervention and repairs, and help trace payments, all of which is great news for KYC (Know Your Customer), AML (Anti-money laundering) and sanctions screening.
Where are you on your journey? Use our Readiness Assessment Tool to help you guage where you're at.