BSP requires ISO 20022 on retail payments
The Bangko Sentral ng Pilipinas (BSP) is requiring all retail payment systems in the country to adopt the ISO 20022 standard. It is a global standard that enables more seamless, efficient and secure domestic and cross-border retail payments.
The requirement, laid out in Circular No. 1223, aligns Philippine payment systems with specifications set by the Bank for International Settlements’ Committee on Payments and Market Infrastructures. This reflects a broader push to keep pace with international norms.
While participants in InstaPay and PESONet have already migrated to ISO 20022, the BSP said implementation has been uneven. The new circular seeks to enforce consistent use of the standard across the industry.
International Organization for Standardization or ISO is a global organization that sets standards for products, services, and systems. ISO 20022 is its standard for electronic data interchange.
The new BSP circular provided a two-year phased implementation period to allow the industry to transition to full compliance.
“This supports better transaction monitoring, stronger compliance checks and effective consumer redress,” the BSP said.
The central bank added that the directive also aligns with the G20’s objectives to improve affordability, speed and transparency of remittances as well as domestic and cross-border retail payments.
Latest data from the BSP showed digital payments cornered 57.4 percent of the total volume of retail transactions in 2024. This means an increase of 4.6 percentage points from the 2023 ratio of 52.8 percent.
Such a result surpassed the government’s 2024 goal to convert 52 percent to 54 percent of retail transactions to digital.
In terms of value, total monthly digital payments reached $136 billion last year. That accounted for 59 percent of the nation’s overall retail transaction value.
With the adoption and consistent implementation of ISO 20022, the central bank said consumers can expect faster resolution of inquiries.
