Currently, address information in payment messages is often communicated using unstructured free-text fields, leading to inconsistencies, processing difficulties, and hindering international interoperability.
In contrast, a Structured Address, as promoted by the ISO 20022 standard, breaks down address details into distinct, standardised fields, enabling more efficient automated processing, improved data quality, and seamless cross-border transactions, ultimately reducing errors and costs.
ISO 20022 is driving the adoption of Structured Addresses, with a move towards mandatory structured or hybrid formats for many payment schemes by November 2026, to enhance the accuracy and efficiency of financial messaging.