A Brief Primer to ISO 20022

One of the pivotal factors into the rise of real time payments is the adoption of ISO 20022, a communication standard created to break down barriers in financial transactions and processing.

Introduced in 2006, ISO 20022 is a unified messaging standard used by the financial services industry to facilitate payments from one entity to another using the same information.

Gaining traction in the past few years, ISO 20022 reached a major landmark earlier this month when the first draft of ISO 20022 payments messages came from the ISO Real-Time Payments Messages Group (RTPG), a panel of 50 experts from around the world tasked with driving forward the project of developing the ISO 20022 messages required.

As the industry reviews the work of the RTPG, the group will continue to work, drafting additional messages and meeting in October to update the industry on the progress.

Clear and Consistent Communication

ISO 20022 was designed with one thing in mind: Simplify the communication between entities, no matter the country. The syntax of a multi-border transaction could mean two completely different things to two entities across a border.

The creation of ISO 20022 and use in the future will offer a more efficient way of developing and implementing message standards that will serve as a basis for long-term solutions.

More Information

As ISO 20022 continues to move forward, accomplishing landmarks, being clarified, and pushing toward the end goal of simplified communication, more entities with international reach will comment on and look further into its progress.

For more information on the internationalization of payments, learn more from the whitepaper, The Future of Corporate Payments, and through the resources below.

• ISO 20022 Website
• Accounts Payable Exceeds Efficiency