Saturday, June 28, 2025

In Search Of 20022

ISO 20022 Header Image
The Role of ISO 20022 in Accounts Payable

ISO 20022 is a global standard for electronic data interchange between financial institutions. It plays an increasingly important role in Accounts Payable by enabling standardized payment instructions, better remittance data, and improved efficiency.

What Is ISO 20022?

Developed by the International Organization for Standardization, ISO 20022 is an XML-based messaging standard for financial services such as payments and electronic statements. Its structured format is gradually replacing many international payment and cash management formats.

  • XML-based messaging standard
  • Used across payments, securities, trade, and cards
  • Mandatory in many global financial systems, including SWIFT

🎥 Understanding ISO 20022

How ISO 20022 Benefits Accounts Payable

  • Standardized Payment Instructions: Messages like pain.001 streamline domestic and international payments.
  • Enhanced Remittance Data: Helps vendors reconcile payments quickly and accurately.
  • Cross-Border Compatibility: One format for all geographies reduces complexity.
  • Automation & STP: Minimizes manual work and errors through Straight-Through Processing.
  • Fraud & Compliance: Better data helps with AML and regulatory screening.

ISO 20022: Empowering the Future of Payments

by Patrick Riesen (Kindle Edition)

📘 View on Amazon

Disclosure: This post may contain affiliate links. As an Amazon Associate, we may earn from qualifying purchases. This helps support the AP Professionals community at no additional cost to you.

Common ISO 20022 Message Types for AP

Message Type Use Case
pain.001 Payment initiation
pain.002 Payment status report
camt.053 Bank statement
camt.054 Credit/debit notification
remt.001 Remittance advice (developing)

Getting Started with ISO 20022 in AP

  1. Talk to your bank about ISO 20022 file support.
  2. Check if your ERP (SAP, Oracle, Workday) is compatible.
  3. Map out your AP workflows for improvement opportunities.
  4. Test end-to-end with partners and banks before going live.

The future of AP is digital, structured, and global. ISO 20022 is at the center of it all.

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