First draft standard on ISO 20022 for real-time payments published

An international project to develop a set of harmonised standards for cross-border real-time payments has published a first draft of ISO 20022 messages for review.

  38 6 comments

First draft standard on ISO 20022 for real-time payments published

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The draft is the result of work by the ISO Real-Time Payments Group (RTPG), made up of over 50 global experts brought together under the aegis of trade body Payments UK.

There are currently 18 countries live with a working model for faster payments, 12 countries that are ‘exploring/planning/ building’, and an additional block of 17 countries that are ‘exploring’ through a pan-Eurozone initiative.

The focus of the first draft spec is not merely on helping countries with their domestic implementation, but also with ensuring interoperability between systems.

Irfan Ahmad, vice president, product development and strategy at US ACH The Clearing House says: "In the short-term we believe these efforts will have a tremendous industry impact with multi-national companies, who can use the same formats and procedures across their operations. In the long-term this effort provides the foundation for international interoperability among real time payments systems."

The initial spec is currently being circulated for review and comment ahead of a further meeting at the international Swift banking conference, Sibos, which is being held in Singapore in October.

Doug Kreviazuk, vice president, next generation clearing and settlement of the Canadian Payments Association (CPA), comments: "This international committee will drive greater efficiency in cross-border and domestic payments. The resulting message set will be leveraged by the CPA in its own modernisation initiative to better meet the needs of those who depend upon Canada’s payments system."

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Comments: (6)

A Finextra member 

Is the draft available for review?

A Finextra member 

I'd be very interested to see a copy

Ramadas Mv

Ramadas Mv Managing Partner at Enterprise Banking Architects

can any one share the draft copy? 

 

Paul Penrose

Paul Penrose Head of Research at Finextra

We've reached out to Payments UK who tell us the draft spec is available from Lauren Jones, head of standards at the body. Switchboard number: +44 (0)20 3217 8200.

Paul Penrose

Paul Penrose Head of Research at Finextra

The Canadian Payments Association has also just launched a public consultation document on the initiative. You can read it here: https://www.cdnpay.ca/imis15/eng/Publications/News/eng/res/ns/seeking_feedback_on_ISO_20022.aspx

A Finextra member 

Great to see Payments UK leading the initiative to develop a common standard, given the UK's leadership of the current global wave of real-time Retail Payment systems (launching Faster Payments in 2008) and VocaLink's pioneering work to spread the word and develop the concept internationally (with its ISO20022 real-time platform IPS now live in at least one other geography).

The concept of real-time payments is that by using technology we can overcome many of the failings of earlier retail payments systems which were subject to the constraints of the technology available at the time they were set up. The role of the technology in real-time systems is to make the transaction as simple as possible to use (the complexity fo previous systems owed a lot to the above mentioned constraints). This inherent simplicity, (plus the involvement of experienced practitioners) may mean that we actually have a chance this time to agree a common standard in a short time, and a new, more capable, more inclusive and more accessible payments architecture will result. 

With geographies like the US, Eurozone, Canada and Australia about to make major investments the motivation is there to make this succeed.

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