Exciting era for cross-border payments as #ISO20022 standard is globally introduced in Mar. 2023

As a universal, digital language for payments messaging, ISO 20022 has existed for years. But with the growing digitization of the financial services industry, the need for an international payments ‘language’ has become greater than ever, and uptake of the standard is rising fast – ISO 20022 is expected to be the native language of payments by 2025.

Financial messaging provider SWIFT predicts that in the coming years, ISO 20022 will be the de facto standard for high-value payment systems of all reserve currencies, supporting 80% of global volumes and 87% of value of transactions worldwide.1

SWIFT is phasing in ISO 20022 as the standard for cross-border payments and cash reporting from March 2023. From the end of 2022, the previous ‘MT’ messaging standard will be supported for backward compatibility purposes – but future investments will be focused on ISO 20022 standards.

Benefits of ISO 20022:

  • Richer data, which is ripe for analysis and can be used to improve customer experience
  • Greater interoperability between different payments systems and interfaces, thanks to a common language
  • Lowered costs thanks to establishing seamless, compatible messaging between countries, financial institutions and individuals
  • Enhanced reconciliation: faster payments speeds by removing holdups, bottlenecks and ambiguity when sending international payments.

But of course, change can bring challenges. We believe it makes sense to be ahead of the curve to achieve a smooth transition and to be ready to reap the benefits of this new, data-rich standard sooner rather than later. But how? Here’s our four-step advice to mastering ISO 20022.


Source: https://twitter.com/swiftcommunity/status/1626224146526113794?s=46&t=qFAcYUhtMAFamtaOh2__ww