You probably heard about the short word “SWIFT”. This may refer to a computer programing language populated by Apple for its mobile Apps. It also refers to cross-border payment communication between financial institutions. The latter is the focus of this article. You’ve gotten it, we are going to talk about Swift payment format and the transition to ISO 20022 standard.
What Is a SWIFT Payment?
A SWIFT payment is an international bank transfer messaging sent through the SWIFT network ((Society for Worldwide Interbank Financial Telecommunication).
SWIFT itself does not move money. Instead, it provides a secure messaging system that banks use to communicate payment instructions. Your bank generates a SWIFT code (MT message) to communicate to the correspondent bank when you’ve done a Telegraph Transfer (TT) also known as bank transfer across country borders.
This standard system has been in use by more than 11,000 institutions in more than 200 countries for the last 48 years, since 1977. A lot of improvement of the MT messaging took place till 2018 when the SWIFT community formally decided to adopt ISO 20022 for cross-border payments and reporting, recognizing the need for richer data, better automation, and modernized messaging. The two systems have been working together since then until last November 2025, the deadline for the complete shift from SWIFT MT messaging to ISO 20022 Standard.
What is ISO 20022 and what’s changing
ISO 20022 is a global, open, structured messaging standard for financial transactions. It defines a common “language” for payments, reporting, cash-management, securities, and so on.
With ISO 20022, messages carry richer, more structured data compared to the older SWIFT “MT” message format. This richer data can include more detailed remittance information, structured addresses, better data for compliance, reconciliation, reporting, etc.
The global banking community, via SWIFT, has officially migrated cross-border payments to ISO 20022. As of 22 November 2025, the “coexistence” period (where both MT and ISO-based messages were allowed) ended. From now on, most cross-border payment instructions must use ISO 20022 (MX/pacs messages) rather than legacy MT.
According to JP Morgan, this isn’t just a technical tweak: it’s a foundational shift that enables better compliance, more efficient processing, improved automation, enhanced data analytics, and smoother interoperability across different payment systems and jurisdictions.
The shift from the long-standing SWIFT MT format to the ISO 20022 standard is a strategic transformation that will shape the future of cross-border payments, compliance processes, reconciliation, and data-driven decision-making. Financial institutions, payment service providers, and corporate finance teams now need to adapt to new message structures, embrace richer data models, and strengthen internal capabilities to fully benefit from this global modernization.
Whether you are a bank, fintech, corporate treasury unit, or financial operations department, understanding ISO 20022 is no longer optional, it is essential. The institutions that invest early in knowledge, internal readiness, and the right skills will gain the greatest operational efficiency and competitive advantage.
This is where Zylloo Consult comes in.
Zylloo Consult offers expert guidance, capacity-building, and customized ISO 20022 training programs designed to equip your team with practical, actionable understanding of the new standard. From message mapping and operational impacts to compliance enhancements and system readiness, our training is tailored to your specific workflows and strategic needs.
If your organization needs to build confidence in ISO 20022 or prepare staff for the transition:
👉 Contact Zylloo Consult today to learn more, request a quotation, or schedule a customized training session for your team.
We are ready to support you in navigating this transformation and turning the ISO 20022 shift into a real opportunity for operational excellence.
By Cezzy Kanionga, Lead Consultant