HIGHLIGHTS

Santander UK has partnered with Worldpay to offer payment acceptance services. This collaboration provides access to e-commerce and in-store solutions, aiming to boost growth for Santander’s business and corporate customers. 

Adyen introduces its Model Context Protocol (MCP) server, piloting a new way for developers to integrate payments using LLMs. This aims to simplify financial operations by translating natural language requests into Adyen API calls, streamlining workflows like refunds and payment session creation. 

Stripe is deepening its partnership with Shopify, enabling millions of Shopify merchants in 34 countries to accept USDC stablecoin payments. Shoppers can pay via crypto wallets, with merchants receiving funds in local currency or USDC. This aims to simplify stablecoin adoption and expand global commerce. 

In other news…

BNPL 

Norway’s Consumer Council has reported Klarna to the Consumer Authority, alleging the BNPL provider lacks transparency regarding credit costs. They claim Klarna’s marketing fails to clearly display interest on Buy Now, Pay Later products, potentially misleading consumers about the true financial implications.

CORPORATE ACTIVITY 

Payrails secured $32M Series A funding, led by HV Capital, totalling over $52.8M. This investment will fuel product innovation and expand its global payment operating system, helping enterprises optimize performance, reduce costs, and manage complex payment operations more efficiently. 

CROSS-BORDER 

Lloyds, in partnership with BNP Paribas, now offers corporate and financial clients advanced FX Execution Algorithms. This collaboration provides sophisticated tools for efficient, transparent, and controlled execution of large FX trades, supporting data-driven decisions and aligning with Lloyds’ digital FX strategy. 

Deutsche Bank and Ant International are partnering to offer integrated cross-border payment solutions to global merchants in Europe and Asia. The collaboration will leverage Ant International’s tokenization and AI-based FX tech, exploring innovations like tokenized deposits and stablecoins for efficient treasury management and reduced FX risks. 

CRYPTOASSETS/BLOCKCHAIN/DLT 

Coinbase and Shopify are partnering to enable USDC payments on Base for millions of Shopify merchants globally. This initiative aims to make onchain payments fast, low-cost, and secure, with merchants easily accepting USDC and customers potentially earning cashback. It signifies a major step towards mainstream crypto adoption in commerce. 

Coinbase is launching the Coinbase One Card this fall, offering up to 4% bitcoin back on all purchases for US Coinbase One members. Powered by American Express, it provides tiered rewards based on assets held. A new $4.99/month Basic tier makes Coinbase One more accessible, including card access. 

Deutsche Bank is exploring tokenized deposits and considering launching its own stablecoin, according to a Bloomberg report. The bank is evaluating various approaches, from independent issuance to industry collaborations, as major financial institutions increasingly embrace digital currency solutions. 

The Payments Association urges the UK Chancellor to clarify the nation’s stablecoin strategy. A new report highlights that clear regulation is crucial for the UK to become a global digital money hub, preventing talent and capital from moving to proactive jurisdictions like the US and EU, especially as stablecoin transaction volume ($27 trillion in 2024) surpasses Visa and Mastercard combined. 

Bitcoin faces a looming quantum computing threat that could undermine its security. Experts warn the cryptocurrency industry is underprepared, with potentially less than a decade to implement “post-quantum” protections to avoid catastrophic disruption to the blockchain’s cryptographic backbone. 

Stripe has acquired Privy, a crypto wallet infrastructure provider, to boost its digital asset offerings. Privy’s white-label solution, supporting 75 million wallets across 1,000 applications, will enhance Stripe’s focus on integrating crypto and fiat, building on its recent stablecoin initiatives. 

PayPal plans to launch its PYUSD stablecoin on the Stellar network, pending regulatory approval. This expansion aims to enable faster, lower-cost everyday payments, remittances, and ‘PayFi’ solutions for millions of users and merchants globally, leveraging Stellar’s efficient blockchain for enhanced utility. 

DIGITAL & eCOMMERCE 

BR-DGE has partnered with AstroPay, integrating the digital wallet as an alternative payment method. This expands BR-DGE’s APM coverage for merchants in e-commerce, travel, gaming, and digital goods, offering multi-currency capabilities, reduced FX costs, and faster, cheaper international transactions for users. 

DIGITAL, RETAIL & ‘Neo’ BANKING 

Revolut seeks to expand in Israel by applying for a “lean bank” license, allowing it to offer deposits and credit. The move aims to offer deposits and credit in the Israeli market beyond current accounts and money transfers. 

Starling Bank launched Spending Intelligence, a UK-first AI chatbot powered by Google’s Gemini. It allows customers to ask questions about their spending habits, offering insights into their transactions and helping them understand where their money goes. The feature aims to aid budgeting and future money management. 

NatWest is closing 55 more branches, adding to 53 already planned for 2025, due to increased online banking. Since 2015, NatWest Group has shut 1,409 branches. Customers can use other group branches, mobile services, or Post Office for in-person banking.

ISSUING 

Conferma partners with J.P. Morgan Payments to expand virtual card capabilities across Europe. They seek to reducing costs in high-volume, cross-border transactions like corporate travel and procurement.

OPEN BANKING & PSD 

Plumery and Salt Edge partner to enhance digital banking. Integrating Salt Edge’s open banking gateway, Plumery’s platform now offers real-time account aggregation and payment initiation across thousands of banks.  

TrueLayer has surpassed 15 million active users. Major brands like Papa Johns and Ryanair are  

adopting their solution with TrueLayer processing over $10 billion in payments. 

The UK’s new Data (Use and Access) Bill enables open banking to evolve into open finance. This expands data sharing beyond payments to include insurance, pensions, and investments, empowering consumers and fostering innovation across various sectors like energy, telecoms, and retail.

REGULATION (EU) 

Spain has introduced a new law, set for January 2026, enabling authorities to acquire cryptocurrency exchange data and seize digital assets for tax debts. This aligns with the EU’s DAC8 directive, enhancing tax oversight on crypto holdings for Spanish citizens, both domestically and internationally. 

REGULATION (UK) 

The FCA is launching a ‘Supercharged Sandbox’ in collaboration with NVIDIA, allowing financial firms to safely experiment with AI. This initiative provides access to enhanced data, technical expertise and regulatory support to accelerate AI innovation within the financial sector, fostering growth and efficiency.