The Committee on Payments and Market Infrastructures (CPMI) at the Bank for International Settlements (BIS) has introduced a series of initiatives aimed at facilitating the global adoption of ISO 20022 data standards for cross-border payments. This plan provides clarity regarding the governance and maintenance of these standards as the world transitions to the ISO 20022 messaging framework. Furthermore, the CPMI’s directives promote collaborative industry efforts to create guidelines specifically geared towards expediting cross-border payment systems.
To ensure continuity, the CPMI has committed to upholding these coordinated data requirements through at least the end of 2027, aligning this timeline with the broader G20 cross-border payments agenda. These parameters had been first detailed in a report submitted to the G20 in October 2023.
In a bid to foster universal acceptance of these standards, the CPMI will also establish a joint panel comprising members from various ISO 20022 global market practice groups. This collaborative entity is set to convene biannually starting in 2025, following the protocols established for maintaining ISO 20022.
In tandem with this initiative, the CPMI has reinstated the Instant Payments Plus (IP+) market practice group to bolster the safety and efficiency of cross-border fast payments. This group will focus on formulating ISO 20022 market practice guidelines that enhance operational standards for quick and international transactions.
Moreover, the CPMI will actively engage with payment system operators and service providers to ensure that the harmonized data requirements are effectively implemented by the specified deadline in 2027. This initiative is part of a broader effort that includes enhancing interoperability within cross-border payment systems, which are critical for transactions that involve parties in different countries.
Recent research conducted by BIS underscores the significance of public sector involvement in the integration of payment systems. The study highlights the need for interchangeable platforms and addresses the complexities that often arise during real-world applications. It posits that the effectiveness of integration will largely hinge on policy decisions rather than on limitations in technology.
The importance of a shared transaction language and robust governance structures is emphasized to maintain financial integrity in payment systems. The report also identifies several challenges, including attracting users to new payment systems and considering models for public ownership that can accommodate fast payment solutions. Furthermore, it addresses the essential need for cross-border functionality and standardization to ensure efficient transaction processes.
Overall, these recent efforts and studies by the CPMI and BIS aim to streamline the processes surrounding cross-border payments, making them more reliable, efficient, and universally understood in the evolving financial landscape. This strategic approach signals an important step forward in addressing the growing demand for faster and more secure payment systems globally.