The Committee on Payments and Market Infrastructures (CPMI) of the Bank for International Settlements (BIS) has announced new measures to support the adoption of its harmonized ISO 20022 data requirements for cross-border payments.

The steps aim to clarify the medium-term governance and maintenance of these requirements during the global transition to the ISO 20022 messaging standard. The CPMI's actions also encourage industry-led efforts to develop guidelines for cross-border fast payments.

CPMI to Maintain ISO 20022 Requirements Until 2027

First, the CPMI will maintain the coordinated data requirements until at least the end of 2027, aligning with the G20 cross-border payments program. These requirements were initially outlined in an October 2023 report to the G20.

To promote global adoption, the CPMI will form a joint panel with members from the ISO 20022 global market practice groups. The panel will meet twice a year, starting in 2025, following the ISO 20022 standard maintenance process.

“The CPMI’s focus on fast payments aligns with the growing demand for instant, frictionless transactions, and it’s positive to see the relaunch of the Instant Payments Plus (IP+) market practice group to accelerate industry-wide adoption," Pratiksha Pathak, Head of Payments at RedCompass Labs, commented.

Bank for International Settlements: “ISO 20022 can be adopted as standardized messaging protocol FOR DIGITAL ASSET TRANSACTIONS.”📝✅

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"The transition to ISO 20022 will unlock significant benefits, including enhanced interoperability, improved transparency, and enriched data processing. However, achieving these outcomes will require continued commitment from payment system operators, service providers, and financial institutions to meet the 2027 adoption timeline," Pathak added.

CPMI Relaunches IP+ Group to Support Fast Payments

The CPMI also encourages the development of ISO 20022 market practice guidelines for fast payments. These guidelines aim to enhance the safety and efficiency of cross-border fast payments. The CPMI supports this initiative by relaunching the Instant Payments Plus (IP+) market practice group.

Lastly, the CPMI will continue engaging with payment system operators and service providers to ensure the implementation of the harmonized data requirements by the end of 2027. The CPMI’s central bank community and task force on cross-border payments Cross-Border Payments Cross-border payments refer to transactions involving individuals, companies, banks or settlement institutions operating in at least two different countries.The concept of cross-border payment is not new however, despite its rise in importance in the 21st century.New technology and the growth of blockchain has brought the term cross-border payment into our daily conversations.Cross-border payments are an essential term that refers to any transaction involving private individuals’ companies, bank Cross-border payments refer to transactions involving individuals, companies, banks or settlement institutions operating in at least two different countries.The concept of cross-border payment is not new however, despite its rise in importance in the 21st century.New technology and the growth of blockchain has brought the term cross-border payment into our daily conversations.Cross-border payments are an essential term that refers to any transaction involving private individuals’ companies, bank Read this Term interoperability will provide additional support.

BIS Emphasizes Policy Role in Payment Systems

BIS recently released a study, Regional Payment Infrastructure Integration: Insights for Interlinking Fast Payment Systems, highlighting the role of public sector support in payment system integration. It emphasizes the importance of shared platforms while acknowledging the complexities of real-world implementation, as reported by Finance Magnates.

BIS argues that policy decisions, not technological limitations, will determine the level of integration or fragmentation. The report discusses the need for a common transaction language and strong governance to ensure financial integrity. It also explores challenges like attracting users, the potential of public-owned FPS models, and the need for cross-border functionality and standardization.