ISO 20022 is proliferating as a universal language for financial messaging, facilitating interoperability, standardization, and enhanced data richness in payment transactions, and it is projected to encompass 80% of clearing and settlement for high-value payments by 2025.

Nevertheless, the ISO 20022 standard is shaped by a rapidly evolving industry, necessitating yearly maintenance and ongoing enhancements to its coverage. This results in a highly complex and continually evolving data model.

In this context, most of the Payment Market Infrastructures adopting ISO 20022 have opted to implement specific versions and subsets of the ISO 20022 data model to simplify processes. To do that, these payment bodies have defined their own set of ‘Usage Guidelines’ which restrict the use of certain elements in the ISO 20022 message and add some tailored constraints on top of the standard definition.

This approach resulted in the proliferation of diverse message specifications and format constraints across different payment jurisdictions, which has led to a fragmented landscape, hindering seamless integration and interoperability for software vendors and financial institutions.

Overcominng these challenges demands innovative solutions that harmonize ISO 20022 messages, expedite adoption, and facilitate efficient communication across payment systems.