The Federal Reserve has rescheduled the Fedwire Funds Service’s adoption of the ISO 20022 message format to July 14, 2025.

It was to be implemented on March 10.

This single-day implementation aims to enhance the efficiency and interoperability of high-value payment systems. The transition to ISO 20022, a global standard for financial messaging, is expected to improve data quality and facilitate more seamless cross-border transactions.

Moving the payments messaging system to the ISO 20022 pattern will aid in reducing fraud and provide conformity in payment messaging data, Booshan Rengachari, chief executive at fintech Finzly, previously told Bank Automation News.

To ensure readiness, the Fed has outlined a comprehensive testing strategy. This includes the MyStandards Readiness Portal, available since March 2023, which allows participants to validate their ISO 20022 messages against Fedwire specifications. Additionally, a new Depository Institution Testing environment (DIT2) has been established for dedicated testing with the updated message format.

Financial institutions are encouraged to complete necessary testing and preparations ahead of the July 2025 implementation date to ensure a smooth transition.

Register here for Bank Automation Summit 2025, taking place March 3-4 in Nashville, Tenn. View the full event agenda here.