Top news:

Gen Z boosts subscription economy spending £305 monthly, tripling spend from older generations. Gen Z stands out as the largest consumer group for subscriptions, with 93% surveyed having at least one. The most common subscriptions across all generations are for TV, music and groceries. 

Santander won a High Court case, avoiding liability for £415,000 lost in an APP fraud. The court ruled Santander had no duty to protect fraud victims, and imposing such a duty would create an “unacceptable burden” on banks.

According to survey by Payabl, UK shoppers often abandon baskets due to poor online checkout. According to the findings based on the observations of customers across the UK, Germany, and the Netherlands, 43% of all shoppers would not return to a retailer if the online checkout process was a poor one.

In other news…

ACCEPTANCE & PROCESSING

ACI Worldwide and Co-op extend their partnership. Co-op will continue using ACI’s platform for in-store, online and mobile payments, plus fraud management. 

Block cuts 931 staff and closes 748 open positions. The CEO Jack Dorsey emphasised these cuts aren’t for financial targets or AI replacement, but efficiency. This follows prior layoffs and regulatory fines in the last two years.

AI

NatWest & OpenAI collaborate to accelerate AI transformation in support of bank-wide simplification and enhanced customer experience. The development of the bank’s digital assistant services for customers will be a key area of focus, including new ways that customers can use AI to help them with more complex tasks, including the identification, reporting and resolution of fraud and scams. 

CASH(less)

In Switzerland, debit cards overtake cash at the POS as the favoured payment method among consumers as per survey conducted by the Swiss National Bank.

CORPORATE ACTIVITY

SBI Group finalized regulatory approval to control Solaris after a €140M funding round. This move aims to bolster Solaris’s growth in the embedded finance market.

Fintech myPOS acquires UK-based UTP Group. UTP provides a comprehensive suite of payment services, including portable and countertop card machines, Tap-to-Pay and ecommerce solutions, and flexible funding options.

CRYPTOASSETS/BLOCKCHAIN/DLT

World Network, linked to Sam Altman’s Worldcoin, is in talks with Visa to integrate card features into its crypto wallet. Aiming to create a “mini bank account,” it plans to offer fiat and stablecoin payments via Visa’s network, expanding its fintech capabilities.

DIGITAL & eCOMMERCE

The EU Commission will invest €1.3 billion through the Digital Europe Programme (2025-2027) in AI, cybersecurity, and digital skills. Funding aims to boost AI adoption, cyber resilience, digital public services, and enhance European tech sovereignty.

DIGITAL, RETAIL & ‘Neo’ BANKING

Monzo introduces Split payments feature under which users can split bills, invite friends and automate payments, simplifying shared expenses.

FRAUD & CYBERSECURITY

Trustly launches Trustly ID, a biometric login solution, in Europe. Using facial or fingerprint recognition, it speeds up logins and payments by securely storing KYC details. Piloted in Finland, it aims to enhance user experience, especially in gaming, with faster, secure access.

OPEN BANKING & PSD

Noda introduces a £0.20 fixed-fee QR code payment solution for UK merchants. It facilitates instant bank transfers, aiming to reduce costs for merchants like beauty salons and tradespeople, offering a cheaper alternative to card transactions. 

Open-Banking-enabled payments provider Atoa integrates with Xero to offer UK businesses optimisation in how they get paid and minimise fees with Instant Bank Pay.

REGULATION (UK)

FCA launches 5-year strategy to support growth and improve lives by boosting trust and growth by becoming a smarter regulator, supporting economic development, aiding consumers in financial decisions, and combating financial crime.