Swift has announced an extension to the structured address migration for ISO 20022 payment messages, following requests from the global payments community for more time to prepare.
The move comes as the industry continues its transition to richer, more structured payment data. More than 98% of payment instructions are now sent in ISO 20022 format, following the transition from the MT standard last year. However, readiness for structured postal addresses remains uneven across markets.
The requirement was originally scheduled as part of Standards Release 2026 in November. Swift will defer all the payment changes while it consults banks, central banks, payment market infrastructures, market practice groups and corporates on the optimal timing and approach.
An update on the structured address migration timeline is expected by December 2026 at the latest.
Why are unstructured addresses being phased out?
ISO 20022 is designed to carry richer, more structured and granular payment data. While the migration to ISO 20022 is an important milestone, maximising its benefits also depends on the quality of the information in each payment message.
Structured address data can support:
- Greater straight-through processing
- More effective compliance screening
- Improved data quality
- Greater transparency across the payment chain
Unstructured addresses, by contrast, can create barriers to automation and operational efficiency because important information sits in free-text fields rather than clearly defined data elements.
The scale of the transition is significant. Earlier this year, Swift reported that approximately 65% of payment messages still contained unstructured addresses, highlighting the work still required across the industry.
Structured, unstructured or hybrid: What's the difference?
Swift currently supports three approaches to postal address data as the industry transitions towards greater structure.
🔹 Structured address
Address components are provided in dedicated structured fields, with town name and country required at a minimum.
🔹 Unstructured address
Address information can be provided in up to three free-text address lines, without separating individual components into dedicated fields.
🔹 Hybrid address
The address combines structured and unstructured elements. town name and country are provided in structured fields, while additional address information can be included in address lines.
What happens next?
The direction has not changed: the payments industry is continuing its transition away from fully unstructured postal addresses.
Once the requirement takes effect, payment messages will need to use structured or hybrid address data where address information is required, rather than fully unstructured addresses. Institutions that currently rely on unstructured data will therefore need to adapt their systems, data models and processes.
The extension gives the industry more time to prepare, but it does not change the broader objective. As ISO 20022 adoption matures, richer, more structured data will play an increasingly important role in improving automation, compliance, and transparency across cross-border payments.
For banks, payment providers and businesses, the message is clear: the deadline may have moved, but the transition towards structured payment data continues.
