US Council for Faster Payments Presents Report on Real-Time Cross-Border Payment Applications Based on ISO 20022 Standard
In a groundbreaking report sponsored by Mastercard, the U.S. Faster Payments Council (FPC) has highlighted the significant impact of ISO 20022 messaging on cross-border payments. The report, titled "ISO 20022: Data Rich Messaging Advances Top Cross-Border Real-Time Payment Use Cases," illuminates the path forward toward a future where faster, smarter, and more inclusive payments are the norm.
The report identifies three key use cases of ISO 20022 messaging in enhancing cross-border real-time payments:
- Buyer-to-Supplier Payments: ISO 20022 enables richer, structured data that facilitates smarter and faster payment processing between buyers and suppliers globally. This improvement is crucial for U.S. manufacturers, for instance, who can now enjoy streamlined transactions with their international partners.
- Tourism and Retail Transactions: The messaging standard supports seamless and rapid cross-border payments in the tourism and retail sectors. This transformation improves the customer experience and transaction speed for tourists in destinations like Brazil, for example, where quick and efficient payments are essential.
- Financial Inclusion: By enabling more inclusive payment systems with rich data capabilities, ISO 20022 helps expand access to real-time cross-border payments for underserved populations. This development is particularly significant for entrepreneurs in developing economies, who can now participate more effectively in the global marketplace.
These use cases collectively demonstrate ISO 20022’s transformative impact on making cross-border payments smarter, faster, and more inclusive through standardized, data-rich messaging.
Jonathan Holland, Vice President of Account Management at Mastercard and Vice Chair of the Cross-Border Payments Work Group, states that ISO 20022 is a strategic enabler of payments innovation. Mark Majeske, SVP of Faster Payments at Alacriti and FPC Cross-Border Payments Work Group Chair, adds that the report demonstrates how ISO 20022 is driving payments modernization.
As governments and industry players build more open, real-time payment environments, ISO 20022 is driving alignment across borders. Reed Luhtanen, FPC Executive Director and CEO, is proud to share the report from the Cross-Border Payments Work Group, which showcases how ISO 20022 is reshaping the way money moves globally.
The Faster Payments Council is a membership organization dedicated to advancing safe, easy-to-use faster payments in the United States. The Cross-Border Payments Work Group is a division within the Faster Payments Council that focuses on exploring and addressing topics related to cross-border payments. The report showcases how ISO 20022 enhances payment experiences through structured, standardized data that enables faster processing, improved compliance, and reduced costs.
In conclusion, the report underscores the potential of ISO 20022 in facilitating smarter, faster, and more inclusive cross-border payments. This development is not only beneficial for businesses and consumers but also aligns with broader public policy goals such as financial inclusion. As the world moves towards more open and real-time payment systems, ISO 20022 is poised to play a crucial role in this transformation.
