The role of the ISO 20022 messaging standard in improving payment transactions utilising participants’ data

Abstract

This paper critically evaluates the prospective influence of ISO 20022, a widely recognised communications standard, on payment services. ISO 20022 provides a standardised and extendable framework aimed at improving efficiency, interoperability, and customer experience in the financial sector. The paper examines how ISO 20022 application can drive revolutionary improvements in payment processing, speeding up transaction processes, and increasing data richness. It also emphasises the importance of taking a balanced approach to ISO 20022 adoption, taking into account both the benefits and obstacles. While ISO 20022 offers enormous opportunity for modernising payment services, organisations must overcome a number of challenges, including technological improvements, data migration and regulatory compliance, to fully realise its promise. By accepting ISO 20022 and addressing its related obstacles, stakeholders can realise the revolutionary benefits of this standard, paving the way for a more efficient and interoperable payment environment.