U.S. Faster Payments Council Releases Dual Reports on ISO 20022 Implementation and Benefits

The U.S. Faster Payments Council (FPC), a membership organization devoted to advancing safe, easy-to-use faster payments in the United States, has announced the release of two complementary reports from its Cross-Border Payments Work Group, sponsored by Mastercard: How to ISO 20022 and Distinguishing Advantages in the Format & Structure of ISO 20022 for Instant Payment Adoption. These reports serve as critical resources for financial institutions seeking to implement ISO 20022, a global standard that is reshaping the landscape of financial messaging.

The first report, How to ISO 20022, provides a detailed roadmap for financial institutions on how to successfully adopt and implement ISO 20022. This guide covers everything from the technical specifications of the standard to practical steps for integration and migration. It is designed to help organizations understand the operational changes required and the benefits that can be unlocked through this transition.

“The journey to ISO 20022 is complex, but the rewards are substantial,” said Barry Tooker, Principal at TransactionBanker.com and FPC Cross-Border Payments Work Group Chair. “These new reports distill our collective expertise into actionable steps that will help financial institutions navigate this transition smoothly, ensuring they are well-positioned to leverage the full capabilities of this powerful standard.”

Building on the implementation guidance, the second report, Distinguishing Advantages in the Format & Structure of ISO 20022 for Instant Payment Adoption, delves into the specific benefits that ISO 20022 offers over legacy message standards. The report highlights key features such as richer data content, enhanced straight-through processing, and improved operational efficiency, all of which are critical for the successful adoption of instant payments and cross-border transactions.

“ISO 20022’s flexible structure and ability to support rich data make it a game-changer for the payments industry,” said Jonathan Holland, Vice President, Account Management at Mastercard and Vice Chair of the Cross-Border Payments Work Group. “Our new reports outline how these features can streamline operations, reduce errors, and ultimately, improve the customer experience.”

“The FPC is committed to advancing faster payments across the board, and the insights provided in these reports are crucial for understanding the full potential of ISO 20022,” said FPC Executive Director Reed Luhtanen. “By embracing this standard, we’re laying the groundwork for a more efficient and interconnected global payments system.”

Both reports are now available for download from the FPC’s Faster Payments Knowledge Center.

The FPC prioritizes inclusion of diverse perspectives in tackling complex topics such as interoperability, identifying real-world solutions that can ease adoption of faster payments, managing security risks and fraud threats, addressing barriers to financial inclusion and cross-border payments, and more, as the organization paves the way toward a future of faster payments for all.