ISO 20022 – the vaunted “common language” powering seamless, secure payments globally – is poised for a critical mass of adoption in 2025 after a long buildup.

Multiple new payment schemes, particularly instant payment systems worldwide, are already natively ISO 20022 compliant. In North America, U.S. financial institutions face two key technical targets for ISO 20022 this year: Fedwire's July 14, 2025, deadline, and Swift's November 2025 deadline. For its part, Swift has adopted a phased approach, focusing initially on payment instructions and maintaining coexistence with legacy Swift messages.

The plan is now approaching fruition.

"We're seeing a ramp-up of ISO 20022 adoption among member banks," said Tony Clark, Head of Corporates - Business Development for North America at Swift​, during a recent webinar presented by Bottomline. “This transition represents a fundamental shift in how payment data is structured and processed across the financial ecosystem.”

Adding key details to that – chiefly the “why” of it all – Marcos Cameron, ISO 20022 Global Program Expert at Swift, noted that, “The rich and structured data format of ISO 20022 enables fast and frictionless payments across borders. This standardization is critical for improving transparency and efficiency in global transactions.”

"Don't wait until the regulation is absolutely specific. Be early, because vendors are all tracking this stuff as well,” added Sadiq Javeri, Head of Platform Product Management – Financial Messaging at Bottomline,​ who hosted the talk. He emphasized the importance of early preparation, adding that vendors are “worried about this massive influx, too."

 

Implementation Challenges and Compliance Hurdles

Banks face several challenges around implementing ISO 20022. For example, an audience poll during the webinar revealed that IT challenges and end-to-end processing changes rank among the top concerns related to meeting these critical deadlines.

Javeri highlighted a common dilemma, saying, "The challenge is choosing between waiting for core banking providers and doing a quick translation." This decision impacts not only compliance but also how effectively FIs can leverage the benefits of the standard.

For successful implementation, banks and financial institutions should:

  • Ensure they have internal experts monitoring regulations from inception
  • Document major use cases early
  • Verify understanding with vendors and peers early in the process
  • Make intentional choices about scope for day-one launch
  • Test thoroughly before deadlines kick in

"Don't bend to the temptation of outsourcing the whole lot," Javeri added to this point. "That just leads to more problems in the midterm, with knowledge transfer, with getting exactly what you want, with the customer experience being disjointed."

With a nod to the fact that some banks and FIs will inevitably miss the November deadline, Cameron said, “Our institutions can continue to send either one of the new MX ISO messages or the old MT messages after November, but will need to send payment instructions in ISO.”

 

Business Payments Benefits of ISO 20022  

While regulatory pressure is driving adoption right now, that may change once North American banks and corporates experience what ISO 20022 can do. Business benefits are substantial and soon to be evident. Enhanced data quality and transparency through rich, structured data that enables faster, and more frictionless payments are just part of it.

Cameron emphasized that the structured nature of ISO 20022 data reduces exceptions and manual intervention, leading to more seamless cross-border exchanges.

This improvement directly affects operational efficiency and cost reduction. The enhanced data carried in ISO 20022 messages allows for better payment matching with invoices and more automated processing.

"Corporates see improved reconciliation as a key benefit of ISO 20022," Clark noted.

This improvement in reconciliation efficiency can greatly reduce manual processing and associated costs. An emerging use case highlighted during the webinar is the ability to “hub” Swift payments through a portal from multiple banks, creating a more streamlined experience for institutions working with multiple banking partners.

 

Debunking Common ISO 20022 Myths

Several misconceptions about ISO 20022 adoption persist this late in the process.

For example, U.S. banks are not required to connect to Swift through a U.S.-based bureau. Various connectivity methods to the Swift network exist, offering flexibility for different institutional needs in various geographies.

Another myth debunked during the webinar is that banks must overhaul their entire payment infrastructure for ISO 20022. In reality, translation services can provide a bridge while Financial Institutions develop their long-term strategy.

The panel agreed that a crucial element of this is Swift Essentials, designed in part to improve cross-border payments in alignment with the G20 goals of lower cost, increased speed, enhanced transparency, and broader access.

"Swift Essentials is a big toolkit for financial institutions to increase the efficiency of their cross-border payments," Clark said.

These services cover the entire payment journey, from pre-payment validation to transaction tracking and case management. Bottomline has enabled three key Swift Essential services for their bureau customers: Swift gpi (cross-border real-time tracking), Swift Securities Tracker (to view the settlement process in real-time), and Swift Case Management (a platform integrating case-related and exceptions management activities).

Javeri encouraged institutions to take advantage of these services, noting they're included in existing Swift agreements: "You're paying for this like a Netflix subscription. It's part and parcel of your charge from Swift. You may as well use them."

As the November 2025 deadline approaches, financial institutions must accelerate their ISO 20022 implementation plans. Those who embrace this transition strategically will not only achieve compliance but also position themselves to deliver enhanced payment experiences and operational efficiencies in an increasingly digital financial ecosystem.