FPC offers resources for efficient, secure, inclusive payments

The U.S. Faster Payments Council (FPC) recently took two significant steps to support the advancement of faster payments in the United States, unveiling new resources that offer guidance to financial institutions on implementing faster payment standards and operational practices. These developments underline the council's ongoing commitment to creating a more efficient, secure and inclusive payments landscape, the FPC noted.

In one initiative, the FPC introduced two reports from its Cross-Border Payments Work Group, sponsored by Mastercard, aimed at simplifying the adoption of ISO 20022—a global standard for financial messaging that is rapidly becoming a game-changer for cross-border and instant payments.

Two reports for ISO 20022 mastery

The reports, titled How to ISO 20022 and Distinguishing Advantages in the Format & Structure of ISO 20022 for Instant Payment Adoption, provide comprehensive resources for financial institutions (FIs) looking to integrate the new standard into their operations.

How to ISO 20022 serves as a detailed roadmap for FIs, covering everything from technical specifications to practical steps for integration and migration. This guide is designed to help organizations understand the operational changes required and the substantial benefits that can be achieved through the transition to ISO 20022. Barry Tooker, Principal at

Barry Tooker, principal atTransactionBanker.com and chair of the FPC Cross-Border Payments Work Group, emphasized the importance of the reports, stating, "The journey to ISO 20022 is complex, but the rewards are substantial. These new reports distill our collective expertise into actionable steps that will help financial institutions navigate this transition smoothly, ensuring they are well-positioned to leverage the full capabilities of this powerful standard."

Building on this guidance, Distinguishing Advantages in the Format & Structure of ISO 20022 for Instant Payment Adoption, focuses on the specific benefits of ISO 20022 over legacy messaging standards. Key features such as richer data content, enhanced straight-through processing, and improved operational efficiency are highlighted, all of which are crucial for the successful adoption of instant payments and cross-border transactions.

Jonathan Holland, vice president, account management at Mastercard and vice chair of the Cross-Border Payments Work Group, stated, "ISO 20022's flexible structure and ability to support rich data make it a game-changer for the payments industry. Our new reports outline how these features can streamline operations, reduce errors, and ultimately, improve the customer experience."

FPC Executive Director Reed Luhtanen added, "By embracing this standard, we're laying the groundwork for a more efficient and interconnected global payments system. The insights provided in these reports are crucial for understanding the full potential of ISO 20022."

Both reports are now available for download from the FPC's Faster Payments Knowledge Center.

New faster payments guidance

In a separate but complementary initiative, the FPC released a new guideline, Operational Considerations for Receiving Instant Payments, aimed at assisting financial institutions in navigating the complexities of instant payments, including RTP and FedNow. Developed by the FPC's Operational Considerations Work Group and sponsored by Endava, this publication provides essential insights and best practices for enhancing operational readiness for real-time payments, the FPC stated.

The guideline addresses the unique challenges that financial institutions face as they adapt their systems and processes to support instant payments, offering detailed guidance on crucial topics such as liquidity management, fraud mitigation, business continuity and staffing requirements.

Miriam Sheril, head of product – US at Form3 and chair of the Operational Considerations Work Group, highlighted the value of the new guideline, stating, "Chairing the Operational Considerations Work Group has been a huge opportunity for me in ways that I hadn't even imagined when I took it on. The expertise around the room is showcased in this deliverable, where we really delve into details around FIs moving into receiving instant payments."

The guideline outlines key operational differences that financial institutions must understand to effectively implement instant payments, such as how real-time payment networks differ from traditional ACH and wire transfers.

Tony Cook, executive vice president – payment operations at FirstBank and vice chair of the Operational Considerations Work Group, emphasized the importance of understanding these distinctions: "It's important to recognize the differences and subtleties of instant payments and what FIs should consider for their implementation," he said.

By offering a comprehensive roadmap for achieving operational excellence in supporting real-time payments, the new guideline helps ensure that institutions are equipped to handle the nuances of 24/7/365 operations, fraud prevention, and customer support.

"As the adoption of instant payments accelerates, it's crucial for financial institutions to understand the operational challenges and opportunities they present," added FPC Executive Director Reed Luhtanen.

Both the new reports on ISO 20022 adoption and the guideline for operational considerations reflect the FPC's commitment to fostering an inclusive and robust faster payments ecosystem. As the organization continues to prioritize diverse perspectives and real-world solutions, these resources pave the way for a future of faster, more secure payments for all.

For more information on these initiatives and to access these resources, visit the FPC's Faster Payments Knowledge Center.

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