Standardisation as standard
Whilst P27 can be considered the important driver for enabling cross border real-time payments in the Nordic countries, other initiatives related to standardisation will also play a key role in supporting instant schemes going forward.
These include SWIFT’s ISO 20022 Programme, scheduled to go live at the end of 2022, which aims to establish a harmonised modern global language for cross border payments messaging. Also, SWIFT’s gpi (global payments innovation) initiative to enhance cross border payments processing has already been adopted by more than 160 banks worldwide. SWIFT gpi enabled payment messages are already securing faster processing and include full end-to-end tracking for both the remitter and ultimate beneficiary of the payment. Furthermore, SWIFT gpi also has an instant offering which can be connected to domestic instant systems, thereby broadening the instant cross border payments area even further.
Marta continues: “From a global perspective, moving to ISO 20022 is crucial for supporting real-time cross border payments as well. First of all ISO 20022 messages are data-rich, providing more details, which is useful for creating more value from the additional information. Also, when we are able to have the same standards, as in we are speaking the same language for all payments, both cross border and domestic, we can make sure that all of the information related to the payments is consistent and that corporates and consumers can use the data, as well as banks. This will enable much faster and more effective processes for receiving and making payments, end to end cash management and managing accounts payables and accounts receivables. The plan is to base P27 on these global ISO standards in order to secure the foundation for future proof payments offerings.”