Driving Efficiency in Cross-Border Payments Through ISO 20022

The Bank for International Settlements' (BIS) Committee on Payments and Market Infrastructures (CPMI) has outlined new initiatives to accelerate the global adoption of the ISO 20022 messaging standard. These efforts are part of a broader mission to enhance the efficiency, safety, and interoperability of cross-border payments. By fostering global data harmonisation, CPMI aims to enable smoother transactions and strengthen financial networks across borders.

Strengthening Harmonised Data Standards

One of the cornerstones of this initiative is the commitment to maintain harmonised data requirements across the G20 cross-border payments programme until the end of 2027. These requirements, initially established in a report presented to the G20 in October 2023, are critical for facilitating the ongoing transition to ISO 20022.

To support this process, the CPMI is forming a joint panel comprising representatives from global market practice groups for ISO 20022. The panel will meet for the first time in early 2025 and continue semiannual meetings in alignment with the standard’s maintenance cycle. This collaboration underscores the importance of unified data standards in achieving seamless global payment interoperability.

Fostering Best Practices for Fast Payments

Recognising the growing need for rapid and reliable payment systems, the CPMI is relaunching the Instant Payments Plus (IP+) market practice group. This group will focus on developing comprehensive ISO 20022 market practice guidelines for fast payments.

The goal is to create a blueprint that payment system operators and service providers can follow to ensure security and efficiency in cross-border transactions. Such guidelines will also encourage industry-led initiatives that promote consistency in payment processing practices worldwide.

Collaboration With Key Stakeholders

The CPMI’s efforts go beyond data harmonisation and guideline development. Active engagement with payment system operators and service providers will play a crucial role in ensuring the adoption of ISO 20022-compliant practices by the 2027 deadline.

To achieve this, the CPMI plans to leverage its central bank community of practice on payment systems and the industry task force on cross-border payments. These collaborative platforms are designed to identify and resolve challenges while ensuring interoperability between systems across different jurisdictions.

The initiatives spearheaded by the CPMI mark a significant step toward a more connected and efficient global payment ecosystem. By driving the adoption of ISO 20022 and supporting best practices, the committee is laying the groundwork for a future where cross-border payments are faster, safer, and more standardised.

The collaborative approach, involving central banks, market practice groups, and industry stakeholders, underscores the transformative potential of these efforts. As the ISO 20022 standard gains traction, it promises to unlock new levels of efficiency and trust in the financial sector, paving the way for a more integrated global economy.