The Central Bank of the Philippines (Bangko Sentral ng Pilipinas, BSP) issued BSP Circular No. 1223 requiring all retail payment systems to adopt the ISO 20022 standard, positioning it as a step toward more seamless, efficient, and secure domestic and cross-border retail payments. The requirements follow specifications set by the Bank for International Settlements’ Committee on Payments and Market Infrastructures (BIS-CPMI). The circular links ISO 20022 adoption to improved transaction monitoring, stronger compliance checks, and more effective consumer redress through more complete transaction data. While InstaPay and PESONet participants have already adopted ISO 20022, the BSP noted inconsistent implementation and now requires consistent application across industry players. The BSP also tied the measure to G20 objectives on the affordability, speed, and transparency of remittances and retail payments, citing expected benefits including faster resolution of consumer inquiries, improved invoice reconciliation and reduced manual processing for businesses, and better interoperability and streamlined regulatory compliance for financial institutions. Circular No. 1223 sets a two-year phased implementation period and establishes an ISO 20022 Harmonization Industry Project Team to lead industry-wide coordination during the transition.
Central Bank of the Philippines 2025-12-23
Central Bank of the Philippines mandates ISO 20022 for all retail payment systems with a two-year phased rollout
The Central Bank of the Philippines (BSP) issued Circular No. 1223 mandating all retail payment systems to adopt the ISO 20022 standard to enhance payment efficiency and security. The circular addresses inconsistent implementation among InstaPay and PESONet participants and aligns with G20 objectives on remittance affordability, speed, and transparency. A two-year phased implementation is planned, with an ISO 20022 Harmonization Industry Project Team overseeing the transition.