ISO 20022: Giving global payments a common language

Behind every payment lies a wealth of crucial information: the sender, the recipient, the reason, the timing and the method. Yet for decades, this information has moved through narrow, often incomplete channels that offer limited usability. Many businesses have questions about the shift to this new standard, so here are the key points to keep in mind.

More than a standard, a meaningful leap forward

ISO 20022 marks a significant evolution in the world of payments. It introduces a common, modern and structured language that’s gradually being adopted across the globe. As payment systems accelerate and become increasingly interconnected, this shift fundamentally changes how payment information is processed.

ISO 20022 brings a new way to transmit payment information, going beyond the limits of outdated formats.

In practical terms, this means:

• Richer, better-structured and easier-to-use data, enabling stronger controls, enhanced security and improved fraud prevention and anti–money laundering capabilities
• Clearer identification of all parties involved
• Fewer manual interventions and exceptions
• Greater automation of accounting processes and reconciliations

• Stronger interoperability between financial institutions
• Improved controls and traceability

That’s why payment providers must now align with this standard for interbank transactions, including for international transfers. 

What ISO 20022 means for businesses

For businesses, adopting the ISO 20022 standard is now essential to ensure payment continuity and compliance.

While adherence is mandatory, the real value lies in the qualitative benefits. With ISO 20022:

• Payment information becomes more detailed and better structured, making it easier to use
• Processing times become more predictable
• Reconciling payments and invoices becomes simpler and more efficient
• The risk of errors tied to incomplete or ambiguous data is reduced

Desjardins: A trusted partner in modernizing payments

Desjardins began preparing for this transition several years ago to ensure uninterrupted service for our members and clients. This initiative reflects our long-term vision of modernizing the payment ecosystem while supporting businesses through this transformation, with full consideration for their operational realities and business needs.

Our systems are already able to process payments that meet the ISO 20022 standard. However, achieving full adoption requires a collective effort, as each organization must update its own systems and processes to comply with the new requirements.

That’s why we will be reaching out directly to businesses currently affected by the transition to provide the support they need. New clients will receive the same level of guidance during their integration process, whenever required.