Banks told to align retail payments with global standards

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December 28, 2025 | 12:00am

MANILA, Philippines — The Bangko Sentral ng Pilipinas is now requiring all retail payment systems in the country to adopt ISO 20022, a global standard designed to make domestic and cross-border retail payments more seamless, efficient and secure.

The BSP issued Circular 1223 to harmonize local retail payment systems with international standards set by the Bank for International Settlements–Committee on Payments and Market Infrastructures.

The BSP said the move would support improved transaction monitoring, stronger compliance checks and more effective consumer redress.

ISO 20022 is a standard developed by the International Organization for Standardization for electronic data interchange, allowing the use of richer and more structured data in payment messages.

The central bank noted that participants in the InstaPay and PESONet systems have already adopted ISO 20022, but implementation across the industry has been uneven. With the issuance of the circular, all industry players are now required to consistently apply the global standard in their retail payment operations.

The circular also aligns with the G20’s objectives to improve the affordability, speed and transparency of remittances as well as domestic and cross-border retail payments. The G20 is an international body of major sovereign countries, including the European Union and the African Union.

The BSP said consistent adoption of ISO 20022 is expected to deliver broad benefits across the payments ecosystem.

“With the adoption and consistent implementation of ISO 20022, consumers can expect faster resolution of inquiries through complete transaction details,” the BSP said.

Businesses are seen to benefit from more accurate invoice reconciliation, reduced manual processing and smoother cross-border integration. At the same time, financial institutions stand to gain from streamlined regulatory compliance, deeper customer insights and improved interoperability among payment systems.

To allow the industry to adjust, Circular 1223 provides a two-year phased implementation period before full compliance is required.

The circular also establishes an ISO 20022 Harmonization Industry Project Team that will oversee industry-wide coordination throughout the transition.

“The BSP will work closely with the payments industry to ensure the smooth and timely implementation of this initiative,” the central bank said.