Upcoming changes to the payment address format
The requirement for providing payee addresses in SEPA and international payments are changing as part of the transition to the ISO 20022 standard. While the implementation deadline has been postponed, companies that send payment files are advised to prepare for the new address format requirements.
In brief:
- Does this affect me? Mainly if your company sends payments as payment files from an ERP, accounting or treasury system.
- What will change? The payee’s address will need to be provided in a structured or hybrid format. Fully unstructured addresses will no longer be accepted once the new requirements take effect.
- Do I need to make changes now? Not yet. The previously announced deadline of 15 November 2026 has been postponed, and a new implementation date has not yet been confirmed.
- What should I do now? Check how payee address information is provided in your payment files and make sure that your software supports at least the hybrid address format.
What is changing?
Payment messages, including international payments, have used the ISO 20022 standard since November 2025. As part of the transition to ISO 20022, the requirements for providing payee address information in SEPA and international payments are changing.
Payers will need to provide the payee’s address in either structured or hybrid format:
- Structured address (recommended) - each address element is given in its own standard field, such as street name, building number, postal code, town and country. Town and country are the minimum required, and free-form address lines cannot be used.
- Hybrid address - combines structured and unstructured information. Town and country must be given in separate structured fields and can be supplemented with free-form address lines. No end date has currently been set for the use of hybrid addresses.
- Unstructured address – all address details entered as free text. This format will no longer be accepted once the new deadline takes effect.
The change applies to the payee’s address only. The bank does not check the accuracy of the address content, so customers are responsible for ensuring that the address fields are filled in correctly.
Which payments are affected?
- International payments - we strongly recommend providing the payee’s address, as it helps ensure that the payment is delivered successfully.
- SEPA credit transfers - the payee’s address is not required. However, if an address is included and it does not meet the required format, it may not be forwarded with the payment.
The change mainly concerns customers who send payments as payment files from their ERP, accounting or treasury systems. In the online bank, the payment form guides the payer to enter the payee’s address in the correct format.
When will the change take effect?
The previously announced deadline of 15 November 2026 has been postponed. SWIFT and the European Payments Council have extended the transition period, meaning that payments with unstructured addresses will continue to be processed for now.
A new implementation date has not yet been confirmed. We will inform you of the new date and any further details once they are confirmed.
What happens if the address is in the wrong format?
Once the new requirements take effect, payments where the payee’s address is in an incorrect format will be rejected, and you will receive feedback on the rejection and will need to correct the address in your system before resubmitting the payment.
How to prepare
- Check how your company provides payee addresses: for which types of payments an address is given, in what format, and from which system the address data comes.
- Make sure that the software you use supports at least the hybrid address format.
- If needed, discuss with your software supplier how addresses can be generated for different payment types in line with the requirements.
- Prepare your internal processes for the possibility that payments may be rejected because of the address format.
More detailed technical information, including payment file specifications, will be published once the new timeline is confirmed.
Why is this changing?
Structured address information improves payment processing and data quality, supports compliance with identity verification requirements for preventing money laundering and financial crime, and reduces errors and manual handling.
Additional questions?
If you have any questions, please contact your OP Corporate Bank plc Latvian branch Cash Management contact person or by writing to latvia.icm@opbank.lv.