A new messaging standard for UK payments: ISO 20022

Payments data in the UK is changing

The UK payments industry is moving to ISO 20022, the emerging global standard for payments messaging. This standard creates a common language for payments data across the globe.

This change includes the Bank’s sterling high value payment system CHAPS.

Better data in payments promises to deliver significant long-term benefits for the economy. To adapt to the new messaging standard and accompanying data requirements, your organisation might have to make process and technology changes.

Read our fact sheet on ISO 20022 for more background Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window Opens in a new window and see how we are collaborating with Pay.UK on ISO 20022 payment messages.

Benefits of ISO 20022

Who we are engaging with and why

Our timelines and approach for CHAPS

The RTGS Renewal Programme has consulted with CHAPS Direct Participants, other central banks and members of the payments industry on its plans for ISO 20022 migration, we continue to work closely with stakeholders as we develop this detail further.

Following industry wide consultation and an impact assessment, the Programme is now able to confirm a revised approach to ISO 20022 migration: 

Phase 1: Preparation (Completed)

• We have published our approach for the migration to ISO 20022, the ISO 20022 revised approach and final schemas document provides detail for CHAPS Direct Participants and all RTGS account holders.
• The Policy Statement: Implementing ISO 20022 Enhanced Data in CHAPS Opens in a new window also provides further information regarding the introduction of Purpose Codes, LEIs, Remittance Data, Structured Addresses and the Extended Character Set in ISO 20022 messaging.
• We are seeking industry feedback on the Purpose Codes Opens in a new window to be used in future UK payments by 31 March 2021. Please see our Technical resources page for further information.
• We are continuing to work closely with Pay.UK to ensure our approach to implementing enhanced data is as aligned as possible with the NPA.

Phase 2: Like-for-like

• From June 2022 the Bank will require all CHAPS Direct Participants to send and receive ISO 20022 payment messages (pac.008, pacs.009 (/COV) and pacs.004).
• ISO 20022 messages will be mapped from MT messages on a like-for-like basis using only the like-for-like XML schemas. Enhanced data will not be permitted.

Phase 2.1:

• From February 2023 the Bank will require all CHAPS Direct Participants to receive enhanced ISO 20022 payment messages and at a minimum continue to send like-for-like messages, using the enhanced XML schemas.
• CHAPS Direct Participants will be able to send enhanced messages, but will not be mandated to do so.
• The like-for-like schemas and rules will be forward compatible with the enhanced schemas and the like-for-like schemas will be decommissioned at this point.

Phase 3:

• The Bank will introduce the new RTGS2 core ledger and settlement engine in September 2023.
• At this point, CHAPS Direct Participants must continue to be able to receive enhanced messages, as under Phase 2.1.

Phase 4:

• The Bank will consider further enhancements to ISO 20022 message schemas and the CHAPS rulebook to mandate or incentivise full use of the ISO 20022 messages (see Policy Statement, above).
• From spring 2024, the Bank will mandate the use of Purpose Codes and LEIs for payments between financial institutions. It will also mandate Purpose Codes for property transactions. From November 2025 the Bank will mandate the use of Structured Addresses and Remittance Data for all payments.

Standards Advisory Panel

The Bank of England and Pay.UK have established a Standards Advisory Panel to provide industry advice on the adoption of new payments standards in the UK.  Please see our Industry Engagement page for further details and past minutes.

How to contact us

For enquires of a technical nature, please see our Technical Resources or contact rtgsreadiness@bankofengland.co.uk.

For all general enquiries, speaker engagements and communication please contact rtgsengagement@bankofengland.co.uk.