ISO 20022’s Next Phase Stalled by Corporate Data Gaps

The global standard for payment messaging, ISO 20022, is hitting a speed bump that impacts how consumer financing and retail payments move across borders. Swift has delayed the deadline for requiring 'structured' address data until 2026. For retailers and lenders, this delay is a double-edged sword. It provides more time to update legacy systems, but it also slows down the move toward faster, more automated payment reconciliations. Currently, many businesses use messy, 'unstructured' address formats that lead to payment delays or manual reviews by banks. The goal of this transition is to make every payment message carry precise, standardized data. This change is critical for Buy Now, Pay Later (BNPL) providers and lenders operating internationally, as it reduces the risk of payments being flagged for compliance errors. If your business relies on cross-border merchant settlements or serves international customers, your back-office systems eventually need to capture customer addresses in a highly specific, segmented format. This delay gives you breathing room to ensure your checkout and loan origination software can handle these data requirements without breaking the user experience.

Source: PYMNTS

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