HIGHLIGHTS

Stripe unveiled new AI-powered tools and enhanced global money management for UK businesses including multi-currency balances, expanded international payment methods and an AI foundation model for payments.  

Cashflows and Cardstream are partnering to simplify embedded payments for businesses in the UK and Europe. Combining Cashflows’ acquiring expertise with Cardstream’s PayFac as a Service (PFaaS) infrastructure, they’ll manage regulatory and operational complexities, enabling faster launch and growth for Payment Facilitators and software platforms. 

Fiserv will acquire AIB’s stake in AIB Merchant Services (AIBMS), making it the sole owner. AIBMS will continue providing payment solutions in Ireland and Europe, with no immediate customer impact. AIB will still refer customers to AIBMS, maintaining a strong relationship. 

Visa’s Pay by Bank launches in the UK market. Visa A2A will offer client protection to bank transfer payments, including clear guidelines on rights and responsibilities. The process is designed to provide a similar level of security associated with card payments. 

In other news…

ACCEPTANCE & PROCESSING 

Fintech Autopay has rolled out a biometric palm-authentication payment system in Poland. To start using biometric payments, consumers must first register in the Autopay app and add their payment card. Purchases are authorized by placing the hand on a special scanner and, after positive verification, the funds are transferred to the seller from the card linked to the Autopay app. 

BNPL 

Zilch partners Visa to launch a physical card. Expanding from a virtual payment card stored in the Zilch app or in a mobile wallet will enable Zilch to capture more of the UK’s in-store spend. The card will be available to Zilch’s existing customers from September and will function identically to the virtual card. 

Klarna and Visa have teamed up to launch a pilot programme for a new debit card that uniquely combines “pay now” and “pay over time” options. This Klarna Card, powered by Visa Flexible Credential, offers users FDIC-insured wallet features and broad merchant acceptance. Currently, the pilot is exclusive to the USA, with plans for a wider rollout in both the US and Europe. 

CASH(less) 

UK-based Revolut has announced its plans to launch its ATMs in Spain. with Portugal to follow in 2026. After this initial phase, another 150 terminals for cash withdrawals and other services will be set up across Spain, aiming for a total of 200 ATMs in the country, specifically in Madrid, Barcelona, Valencia, and Malaga. Expansion into three additional countries is planned for 2026, namely Portugal, Italy, and Germany. 

CORPORATE ACTIVITY 

UK fintech company Wise to switch main listing to New York to attract more US investors and boost its valuation, while maintaining a secondary London listing. This move highlights ongoing concerns about London’s competitiveness against Wall Street. 

Tide is in advanced talks with Apis Partners, a UK-based fintech investor, about a new funding deal that would see the UK-based business banking fintech’s valuation rise above $1bn making it the UK’s next unicorn. 

CROSS-BORDER 

The EU Digital Identity Wallet, launching by 2026, enables secure, cross-border identity verification for easier account opening and payment authentication, offering a significant opportunity for innovation and trust in the digital landscape. 

CRYPTOASSETS/BLOCKCHAIN/DLT 

BCP Technologies launched tGBP, the first British pound stablecoin from an FCA-registered issuer. Backed 1:1 by sterling in a segregated UK account, tGBP offers a reliable, liquid alternative for various uses, including cross-border payments, DeFi, and tokenised asset settlement. 

DIGITAL & eCOMMERCE 

Zero Fintech offers a net-zero banking alternative in the UK. It helps climate-conscious consumers track their carbon footprint via a “GreenScore” and plans carbon offsetting projects. 

Mastercard has reached 49% e-commerce tokenisation in Europe within a year, aiming for 100% by 2030. Biometric Passkeys are also rolling out to improve online authentication, boosting conversion and approval rates.

DIGITAL, RETAIL & ‘Neo’ BANKING 

Monzo revenues hit £1bn for first time. Revenue reached £1.2bn ahead of a planned IPO, a 48% increase on the previous year. Customer deposits rose by the same percentage to £16.6bn while total assets rose by 41% to £18.3bn. 

Revolut joins the European Payments Initiative. Revolut’s customers, initially in France, Belgium, and Germany, will have access to Wero’s core features directly within their Revolut app, including instant, free-of-charge money transfers between Wero users. 

FRAUD & CYBERSECURITY 

The BIS and Bank of England’s ‘Project Hertha’ successfully trialled AI to detect financial crime in retail payments. This collaboration, named after inventor Hertha Ayrton, found AI improved illicit account detection by 12% and novel crime pattern identification by 26%, offering a valuable tool despite implementation challenges.  

ISSUING 

Mastercard and PayPal partner on Mastercard One Credential, offering consumers more choice and control at checkout. This collaboration aims to simplify payments online and in-store with a single credential providing multiple payment options. 

MOBILE MONEY/WALLETS 

Venmo is expanding its features with the Venmo Debit Card and Venmo Checkout, allowing users to spend their balance more broadly and earn enhanced rewards. This move transforms Venmo into a full-service commerce experience, simplifying in-store and online payments. 

OPEN BANKING & PSD 

Deutsche Bank and Mastercard partner to advance open banking, enhancing Deutsche Bank’s Request to Pay (R2P) service. This collaboration integrates Mastercard’s open banking technology, enabling merchants to offer “Pay by Bank” options.

REGULATION (EU) 

The European Card Payment Association urges EU payments sovereignty, advocating for strong domestic card schemes and open standards like CPACE. This aims to reduce reliance on dominant US players (Visa, Mastercard, Apple, Google, PayPal) and bolster Europe’s financial resilience amidst geopolitical uncertainties. 

SCHEMES 

Worldline will launch the Wero payment service for online merchants in Germany by summer 2025.