Semantic Interoperability in Payment Infrastructure Modernization: A Canonical Transformation Reference Architecture for ISO 2022 Migration

The global migration to the ISO 20022 standard, which concluded its coexistence period on the Swift network in November 2025, is often referred to as a format change. The thesis of this paper is that the idea that the migration is a format change is the reason for the stalled and low-value migrations of many organizations. Instead, the real problem is that of semantic interoperability between the systems that need to exchange payment data. In this paper, I will detail the design science approach to the problem, analyze the standards and cutovers of various market infrastructures and the operations of those infrastructures. In doing so, I will differentiate between the syntactic translation between different formats (MT and XML) and the semantic transformations between them. In contrast to the one-directional converters currently available, this paper will present a canonical transformation reference architecture based upon the Canonical Data Model and Message Translator integration patterns. Using this architecture, all incoming and outgoing messages are normalized into the Canonical Data Model prior to the generation of the target message format. Furthermore, I will outline the transformation pipeline, the validation gates, and the exception and repair process within that architecture. Finally, I will discuss the benefits of this proposed architecture, evaluating it in terms of the measurable figures of the operator, the published benchmarks of third-party organizations, and projections of the outcomes of implementing this model. These projections indicate a reduction in the number of investigations required for transactions of approximately 1,600 staff hours for an organization that processes one million transactions per month. In addition, the presented architecture is intended to be a durable model rather than a one-time cutover plan, as the harmonization of the various payment systems will continue through at least 2027.

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Publication Details

Journal
Zenodo (CERN European Organization for Nuclear Research)
Published
2026-11-06
DOI
https://doi.org/10.5281/zenodo.24009331
Primary Topic
Service-Oriented Architecture and Web Services
Type
article
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article

Semantic Interoperability in Payment Infrastructure Modernization: A Canonical Transformation Reference Architecture for ISO 2022 Migration

Chandrashekhar Kharche
Zenodo (CERN European Organization for Nuclear Research)
Service-Oriented Architecture and Web Services
article

Semantic Interoperability in Payment Infrastructure Modernization: A Canonical Transformation Reference Architecture for ISO 2022 Migration

Chandrashekhar Kharche
article en

Abstract

The global migration to the ISO 20022 standard, which concluded its coexistence period on the Swift network in November 2025, is often referred to as a format change. The thesis of this paper is that the idea that the migration is a format change is the reason for the stalled and low-value migrations of many organizations. Instead, the real problem is that of semantic interoperability between the systems that need to exchange payment data. In this paper, I will detail the design science approach to the problem, analyze the standards and cutovers of various market infrastructures and the operations of those infrastructures. In doing so, I will differentiate between the syntactic translation between different formats (MT and XML) and the semantic transformations between them. In contrast to the one-directional converters currently available, this paper will present a canonical transformation reference architecture based upon the Canonical Data Model and Message Translator integration patterns. Using this architecture, all incoming and outgoing messages are normalized into the Canonical Data Model prior to the generation of the target message format. Furthermore, I will outline the transformation pipeline, the validation gates, and the exception and repair process within that architecture. Finally, I will discuss the benefits of this proposed architecture, evaluating it in terms of the measurable figures of the operator, the published benchmarks of third-party organizations, and projections of the outcomes of implementing this model. These projections indicate a reduction in the number of investigations required for transactions of approximately 1,600 staff hours for an organization that processes one million transactions per month. In addition, the presented architecture is intended to be a durable model rather than a one-time cutover plan, as the harmonization of the various payment systems will continue through at least 2027.

Zenodo (CERN European Organization for Nuclear Research)
Industry, innovation and infrastructure
Openalex Percentile: Top 10%
Service-Oriented Architecture and Web Services
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