EBA Clearing, AusPayNet, and Payments Canada have transformed their payment systems to adapt to the new ISO 20022 data exchange format.
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The transition to the new format has been postponed several times. The reason for this was various technical problems that are associated with updating throughout the industry and adapting the new standard to all jurisdictions.
The Federal Reserve has postponed the transition to a one-day Big Bang migration until 2025. The Bank of England has set a deadline for June this year. Euro1 from EBA Clearing, HVCS from AusPayNet and the Lynx payment system from Payments Canada were among the first to achieve the goal of switching to a new format.
The upgrade to Euro1 coincides with the launch of the new wholesale payment system T2 with support for the ISO20022 standard from Eurosystem, which includes RTGS and a central liquidity management tool.
Erwin Kulk, Head of Development and Service Management at EBA Clearing, said that with the help of this migration, it was possible to transfer the powerful functionality of Euro1 and its extremely high level of availability and reliability to a new technological space. He also noted that these transformations will allow users to increase the level of liquidity efficiency and profitability of the system during longer operating hours.
Payments Canada customers also expect to be able to take advantage of the new format at a faster pace.
Ramesh Siromani, Executive Director of the Royal Bank of Canada, said that technological migration provides a space of opportunities for further implementation and promotion of innovative solutions in the field of payment services. He noted that the new product will improve the quality of data exchange in the payment ecosystem.
For banks, adapting to the new data exchange format means starting a complex work that consists of 750 new business components and more than 1,900 message definitions. A transitional period is currently in effect, which will end in November 2025. After the end of this period, the outdated MT format will be canceled. This means that all banks in the Swift network will have to comply with the new ISO 20022 standard.
As we have reported earlier, Bank of Canada Prepares Report on Prospects of Digital Currency.
