Following the banks, which have been migrating to ISO 20022 since March 2023, companies are required to follow suit by the end of the year (November 2025) and transition all their payment flows to the XML format. As banks adopt ISO 20022, businesses must adapt accordingly.
Behind this standardization lies a major challenge: ensuring data integrity while managing a significant transformation in payments.
This transition is not just a technical upgrade—it fundamentally reshapes how payment flows are handled. But how can businesses prepare for this shift without disrupting everything?
A revolution… seemingly under control
Banks have already begun the transition. Since March 2023, they have been using the ISO 20022 format for cross-border payments and interbank messages. This international standard, developed by the International Organization for Standardization (ISO), aims to unify payment formats by replacing the old SWIFT MT (Message Type) messages with MX messages (based on XML – Extensible Markup Language).
But what about businesses? Many still rely on MT files, such as MT940 (electronic bank statement) or MT101 (multi-bank payment order). However, this coexistence won’t last: starting in November 2026, corporations will be required to send and receive payments exclusively in XML.
A technical shift… and an explosion of complexity
Known as CBPR+ (Cross-Border Payments and Reporting Plus), the transition from MT to MX, as decided by a panel of experts convened by SWIFT (guidelines), is far more than a simple conversion. ISO 20022 introduces a much more detailed data structure, with XML tags enabling the transmission of richer and more comprehensive information.
For example, the SWIFT FIN network will transition to SWIFT FINplus, which will be used for exchanging all ISO 20022 messages, including payments, treasury transfers, and more. Additionally, MT101 messages will migrate to pain.001.
Another major change concerns the addresses of beneficiaries and originators. Previously stored in a single line, these addresses are now broken down into multiple distinct fields: name, street, building, postal code, city, country, and, in some cases, additional details based on local regulations. This modification is mandated by the European Payments Council (EPC) (see details), which is harmonizing payments across Europe to enhance transparency and strengthen fraud prevention.
The Impact on Businesses Is Immediate :
- ERP and TMS (Treasury Management System) must handle these new structures without data loss. A poorly formatted field can lead to rejected payments or reconciliation errors.
- Treasury tools must process significantly larger data volumes. A traditional MT940 statement was concise, whereas its XML equivalent, camt.053, can carry much more detailed information.
- Treasury teams must adapt to a new logic. The era of fixed-format files is over—ISO 20022 introduces a flexible, adaptive structure that requires extensive configuration.
- Testing with banks is now essential. Each bank may have its own specific variations of the ISO 20022 format, making standardization even more complex.
Hybrid Approach or Full Transition?
To manage this transition, some companies are opting for a hybrid approach, consolidating multiple ISO 20022 fields into a single field within their ERP (Enterprise Resource Planning) or TMS (Treasury Management System). This method enables a gradual transition while minimizing the initial impact on their IT systems.
The advantage? A smoother transition, with automatic conversions in the ERP or TMS to simulate the old MT format while technically sending MX messages to banks. However, this approach can become a trap if not properly managed—mapping errors or data loss could complicate the full adoption of ISO 20022.
Others prefer a full migration, integrating XML formats natively. While more complex in the short term, this strategy ensures full compliance with banking and regulatory requirements by November 2026 and internationally.
A Tailored Solution: A TMS Ready for ISO 20022
Impacts Beyond Just a Format Change
This migration is more than just a technical requirement—ISO 20022 directly impacts payment management, accounting reconciliation, and regulatory compliance.
- Enhanced Bank Reconciliation: With more detailed information, businesses can automate a greater portion of the reconciliation process between payments and invoices.
- Strengthened Compliance: Structured data facilitates AML (Anti-Money Laundering) controls and helps combat fraud.
- Optimized Cash Management Processes: Greater data granularity improves liquidity management and enables more accurate cash flow forecasting.
- Reduced Banking Fees: Some fees stem from manual correction processes—automation and standardization can help lower these costs.
November 2026 Is Just Around the Corner
Every lost day makes the transition more challenging. By November 2026, MT payments will be phased out, and XML will become the standard.
Some businesses have already started their transition, testing their new formats with banking partners.
Others are still waiting—hoping for a miracle solution or an extension.
The real question is no longer whether the migration will happen, but how it will be managed.
ISO 20022 migration is a complex but achievable project. Businesses that start preparing now stand to gain the most.
But one key question remains: Are your current tools (TMS, ERP, etc.) ready to handle this transition without requiring heavy and costly configuration changes?
And You?
The ISO 20022 migration is a revolution for corporate payments. It requires major technical changes, but it also presents unprecedented opportunities. Businesses that start preparing now have everything to gain.
So, are you ready?
