Pay.UK is consulting on its approach to delivery of the global message standard ISO 20022 as part of the country's New Payment Architecture. This follows industry-wide consultation over the last couple of years from both the Bank of England and Pay.UK. Pay.UK is inviting current and future participants, Government Banking Service (as the largest volume user of UK payment services) and end user organisations to respond to this consultation by Tuesday 31 March.
Pay.UK at the core of this transformation
Setting standards is at the heart of what Pay.UK does. As the UK’s leading retail payments authority, Pay.UK established the New Payment Infrastructure, designing the standards and business rules necessary for UK payments. In 2019, Pay.UK’s infrastructure carried more than £7 trillion worth of payments.
As part of the NPA, Pay.UK set up the Standards Authority which has the responsibility to deliver the next generation of standards for UK payments. The initial key focus is on the standard for the NPA clearing and settlement capability – this is the NPA standard on which this consultation focuses.
ISO 20022, what is it?
ISO 20022 is a multi-part International Standard prepared by ISO Technical Committee. It describes a common platform for the development of messages using:
- a modelling methodology to capture in a syntax-independent way financial business area, business transactions and associated message flows;
- a central dictionary of business items used in financial communications.
It is the emerging global standard for payments messaging. This standard creates a common language for payments data across the globe. The resulting models and derived messages are published in the Catalogue of messages and stored in the ISO 20022 Financial Repository available on this website.
ISO 20022, what’s the point?
It is not only the UK which is adopting ISO 20022. Over 70 countries have already adopted ISO 20022, so messages will be harmonised with payment systems around the world.
One of the key features of ISO 20022 is enriched data which will enable more detailed and better structured reference information. More efficient data collection may also improve the decision making and make it easier for businesses to detect fraud and help target financial crime.
It is also expected that enriched data and flexibility will help adapt and boost competition and innovation in payments.
Pay.UK plans to publish the findings of this consultation on wearepay.uk in H2 2020.