Insights from the Pay360 summit

What is the next step for Payments companies?

Alex Speedie

April 1, 2025

As a delegate of the Pay360 summit, it was a pleasure to hear from so many industry titans on the issues facing the payments industry, right now. As discussed in a previous post, payments remain one of the most dynamic and fastest-growing areas within fintech.

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The keynote panel on the opening day was particularly illuminating. As the payments industry expands, regulatory scrutiny around financial crime is intensifying, emerging as the primary challenge for businesses. With fines for non-compliance potentially reaching tens of millions, firms must significantly enhance their internal processes to avoid regulatory penalties. As a global fintech leader, the UK is well positioned to shape the next phase of regulation. However, the implementation of new UK APP fraud rules has sparked concern, given the increased liability and exposure they create for payments companies. Businesses now face the dual challenge of maintaining a seamless user experience while ensuring that customers do not inadvertently make payments to fraudulent recipients. The burden of rejecting refunds has never been higher for payments firms.

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A lunchtime panel on the impact of global economic trends on payments was equally engaging. With Donald Trump’s economic policies taking shape, fears of a global recession are mounting, potentially reducing disposable incomes and leading to lower per capita transaction values. This year may see the full impact of market disruptions as Trump’s tariffs ripple through the global economy. Yet, paradoxically, payments companies may find an opportunity amid the turbulence. B2B transactions, particularly those affected by tariffs could see higher values, creating a potential avenue for UK firms to target businesses focused on exports to the US. Geopolitics also loomed large. With speculation that the war in Ukraine may soon reach a ceasefire, could Russia be reintroduced into the SWIFT network, and what would that mean for payments firms?

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The afternoon sessions I attended looked at AI’s growing role in payments. The integration of chatbots is an interesting point here, because as natural language models become ever more sophisticated, their ability to service customer queries in a satisfactory manner, increases. This has significant implications for payments companies. Fraud prevention remains a critical issue, with the Payment Systems Regulator reporting that £341 million was lost to APP scams in 2023 across more than 250,000 cases. Given the introduction of the UK APP fraud rules, investment in AI-driven fraud detection has become not just necessary but financially prudent. As an example, the session explored how AI is being deployed, from detecting fraudulent approaches before they reach consumers to freezing suspicious transactions and requiring manual authorisation. This discussion naturally segued into the final session I attended, which focused on AI’s broader role in combating financial crime.

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On the second day, the most thought-provoking session was the keynote speech outlining industry changes expected over the next 12 months. With that, the UK cannot regulate in isolation though, and collaboration with European regulators is likely to deepen. Whether such alignment will extend to the US remains uncertain though. Payments remain the largest subsector within fintech, and its continued growth depends on a harmonised regulatory approach. For UK firms seeking global expansion, obtaining licences in multiple jurisdictions remains essential. A more coordinated regulatory framework would enhance efficiency, reducing costs for both businesses and consumers, and would enable a faster rate of growth for payments companies.

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With that, looking ahead to 2026, four key themes stand out: The opportunities involved in international expansion, the importance of regulatory compliance, how AI is reshaping the industry for the better and geopolitical volatility and the opportunities and threats that then brings. A great couple of days, and looking forward to next year!

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Insights from the Pay360 summit

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