A significant change to international payment messaging is approaching, with new address requirements coming into effect from mid-November 2026 as part of the continued adoption of ISO 20022.
From this point, fully unstructured postal addresses will no longer be accepted for affected ISO 20022 payment messages. Instead, address information will need to be provided using either a fully structured or hybrid format, helping to improve data quality, payment processing and transparency across the payment’s ecosystem.
The change may sound technical, but its practical impact is straightforward.
One important misconception is that the new requirements relate only to Single Euro Payments Area (SEPA) payments.
The changes form part of the broader evolution of ISO 20022 payment messaging and can therefore have implications beyond SEPA. The removal of unstructured postal addresses applies across relevant ISO 20022 payment messages and should be considered by organisations making payments internationally.
This does not mean that every bank file format will automatically change. Established local payment formats, such as BACS Standard 19 in the UK and ABA files in Australia, may continue to operate under their existing requirements.
The key consideration is whether your organisation uses ISO 20022 payment files and what your individual bank requires.
The main change concerns how addresses are presented within affected payment messages.
Historically, addresses could be supplied across free text address lines without individual elements being clearly identified. From mid-Novembervember 2026, affected payments will instead need to use structured or hybrid postal addresses.
There are two permitted approaches:
In both cases, town and country are the minimum required address information, with the country provided using the appropriate ISO country code.
Depending on the payment type and individual bank requirements, organisations may need to review the address information held for parties involved in the payment. This makes data quality an important part of preparation, particularly where existing address information is held primarily in free text fields.
Moving away from free text addresses is intended to make payment information more consistent and machine readable.
Structured data can support more effective payment processing, compliance screening and identification of the parties involved in transactions. It can also reduce the need for manual intervention where address information is incomplete or difficult for payment systems to interpret.
The consequences of submitting incorrect information are also important. Non-compliant address data could result in affected payments being rejected or delayed once the new requirements take effect, making early preparation important.
Banks have been communicating with customers about the changes, and these communications should not be ignored.
If activpayroll currently provides bank payment files for your organisation, there are four important steps to take:
Bank requirements and implementation approaches may differ, so confirmation should ultimately come directly from your banking provider.
For customers where activpayroll manages the payment process directly, preparations for the new requirements are already in hand, with implementation completed in some countries.
Our teams continue to monitor the transition and make the necessary changes to support compliant payment processing ahead of the November 2026 deadline.
Where activpayroll provides a bank file for the customer to submit directly, however, the customer's bank remains the authoritative source for confirming whether that file will continue to be accepted.
The technical changes behind ISO 20022 can be complex, but the immediate action for businesses does not need to be.
Start by understanding how your payments are currently submitted and whether your bank requires any changes. Address data should also be reviewed to ensure that, where required, town and country information is available in a format that can be provided separately rather than solely within free text address lines.
Taking these steps now can provide time to identify potential gaps, complete any required bank testing and make necessary changes before the new requirements take effect.
The move to structured and hybrid addresses represents another important step in the global adoption of ISO 20022. For businesses making payments across multiple countries, understanding which payment formats are affected and confirming requirements with banking partners will be essential.
activpayroll is already preparing for the changes where we manage customer payments directly. Where we provide bank files for customer submission, our teams can also help assess changes once the relevant specifications have been confirmed by your bank.
If activpayroll provides your bank files, speak to your bank now to confirm whether your existing format will remain acceptable from November 2026. If changes are required, share the specifications with your activpayroll contact as soon as possible.
Have further questions? Get in touch with our team today for guidance and support.