BSP mandates ISO 20022 adoption across retail payments in Philippines

 BSP said it will establish an ISO 20022 Harmonization Industry Project Team to coordinate the industry-wide transition.

The Bangko Sentral ng Pilipinas (BSP) has moved to standardise electronic data interchange across the country’s retail payments ecosystem, as part of efforts to improve the efficiency, security, and transparency of domestic and cross-border transactions.

The central bank said it has issued BSP Circular No. 1223, which requires all retail payment systems in the Philippines to adopt the ISO 20022 messaging standard.

The requirement follows specifications set by the Bank for International Settlements’ Committee on Payments and Market Infrastructures.

BSP said the adoption of ISO 20022 will support better transaction monitoring, stronger compliance checks, and more effective consumer redress.

The standard allows for richer and more structured payment data, which the central bank said would improve oversight and reduce friction across payment processes.

Whilst BSP noted that participants in the InstaPay and PESONet systems have already adopted ISO 20022, it said implementation across the industry has been inconsistent.

Under Circular No. 1223, all relevant players are required to apply the standard consistently across retail payment systems.

The central bank also framed the move as part of international alignment efforts. BSP said the circular supports G20 objectives to improve the affordability, speed, and transparency of remittances, as well as domestic and cross-border retail payments.

According to BSP, consumers are expected to benefit from faster resolution of payment inquiries due to more complete transaction details.

Circular No. 1223 provides for a two-year phased implementation period. BSP said it will establish an ISO 20022 Harmonization Industry Project Team to coordinate the industry-wide transition, and added that it will work closely with payment system participants to ensure smooth and timely implementation.