The central bank, along with the New Payments System Operator (NPSO) and the Payment System Regulator (PSR), is asking for feedback on adopting ISO 20022 across the UK's three main interbank payments systems: Chaps, Faster Payments and Bacs.

The BofE and NPSO have already been preparing for the switch, designing a ‘Common UK Credit Message (CCM)’ - a standard message to be used across all three systems that will also be compatible with the overseas payment systems that are adopting ISO 20022.

The overhaul is being enabled by the central bank's new Real Time Gross Settlement for Chaps payments, and the creation of a New Payments Architecture (NPA) for Bacs and Faster Payments.

ISO 20022 - which will not be rolled out for several years - will enrich the data carried in payments messages, improve compatibility across technology platforms and create opportunities for collaboration and innovation.

Andrew Hauser, executive director, BofE, says: "The coordinated adoption of a single standard across UK payment systems should bring many benefits for payment providers, and for the businesses and households they serve.

"Risk will be reduced by allowing payments to be rerouted more effectively between systems, and by standardising and improving data supporting detection of fraud and financial crime. Payments will flow more easily across international borders."

However, the switch will involve major upheaval for both payment providers and users of the system, prompting the consultation on implementation. You can read the consultation paper here and register to reply here.