Navigating ISO 20022 Migration: A Comprehensive View
Written by Meenakshi Sundaram Arunachalam, Rammurthy Mudaliar & Rahul Goveas
3 October, 2023
In the landscape of financial transactions, the shift towards ISO 20022 migration is an evolving narrative, brimming with complexity and potential. Across the European Union, a comprehensive study conducted by the European Cards Stakeholders Group emphasized the significance of a market-driven approach to ISO 20022 migration, refraining from imposing a rigid standardization mandate. From our vantage point, this transition can be orchestrated through a dynamic, point-to-point connection within the ecosystem, involving key players.
The proposed migration sequence encompasses critical entities, starting with Acquirers connecting with Payment Schemes, followed by Payment Schemes engaging with Issuers, subsequently involving Clearing and Settlement processes, and ultimately, Terminals integrating with Acquirers. Acknowledging the arduous journey ahead, bridging the translation capabilities between the existing ISO 8583 and ISO 20022 standards at various touchpoints is crucial to smooth the transition.
In essence, striking a balance between challenges and benefits for stakeholders necessitates a nuanced approach. Soft nudges towards standardization, unique to each country, must be embraced. It's imperative to reassess migration strategies with a fresh perspective, envisioning a robust, uniform, and modern payment infrastructure.
Learn more about how these two standards stack up and our take on the benefits and challenges expected for various stakeholders.
