In the ever-evolving payments processing landscape, there are two prominent message formats: ISO 8583 and ISO 20022. ISO 8583 is specifically for card-based transactions, and ISO 20022 covers all transactions including real-time and cross border payments. 

The payments industry is pushing more companies to adopt ISO 20022. Several industry timelines and compliance deadlines in the United States, the United Kingdom, and Europe may lead to the universal adoption of ISO 20022 by November 2025. 

According to Barry Tooker, principal of payments consulting firm TransactionBanker.com, “ISO 20022 has transformative impacts on real-time, high-value, and cross-border payments.  It’s driving standardization, interoperability, automation, efficiency, and transparency across payment processes, systems, and services. Financial institutions, payment service providers, and other stakeholders in the payments ecosystem need to embrace ISO 20022 adoption to capitalize on the benefits and opportunities it offers for enhancing payment capabilities and experiences.”

While the industry is moving towards ISO 20022 as a universal payment messaging standard, ISO 8583 is currently the primary messaging standard for card payments and will continue to be used for some time. Therefore, it will be important to support both formats. 

Check out this article in BAI Banking Strategies by BHMI’s CTO, Michael Meeks, about the strategic advantages of implementing a unified approach that supports both ISO 8583 and ISO 20022 message formats.