FCA Scraps Contactless Payment Cap — Banks Free to Set Own Limits
The Financial Conduct Authority has removed the regulatory cap on contactless payments, allowing banks and payment providers to set their own transaction limits from March 2026.
Payments
Latest payments news and analysis
Revolut Applies for US Banking Charter in Global Push
By Priya Sharma
UK fintech giant Revolut has filed applications with the OCC and FDIC for a US national bank charter, committing $500 million to the American market as it targets 100 million customers globally.
Monzo Eyes £6 Billion London IPO as UK Neobank Prepares for Public Markets
By Oliver Trent
Monzo has engaged Morgan Stanley for a potential London IPO valued between £6–7 billion, which would mark the most significant fintech listing on the London Stock Exchange in years.
FCA Cracks Down on Appointed Representatives Regime in Fintech Sector
The FCA has issued 19 enforcement notices to principal firms in the fintech sector for inadequate oversight of their appointed representatives, as tighter rules introduced in 2024 begin to bite.
Credit Builder Apps See Record UK Sign-Ups as Young Adults Tackle Financial Exclusion
Credit building apps including Loqbox, Bits and Creditspring have reported record user growth in the UK, driven by under-30s seeking to establish credit histories without taking on traditional debt.
Pay by Bank Adoption Doubles as UK Retailers Embrace Open Banking at Checkout
Pay by Bank usage has more than doubled in the past year, with over 40 major UK retailers now offering the Open Banking payment method at online and in-store checkouts.
UK Invoice Financing Sector Hits £40 Billion as Fintechs Capture Record Market Share
The UK invoice financing market has grown to £40 billion in annual advances, with fintech providers now accounting for nearly one-fifth of all originations as digital platforms reshape trade finance.
Card Payments Lose Ground to Digital Wallets as UK Consumers Shift Spending Habits
Digital wallet transactions have overtaken physical card payments in UK retail for the first time, with Apple Pay, Google Pay, and retailer-branded wallets now accounting for 52% of in-store contactless spend.
UK Fintech Valuations Stabilise as Public and Private Markets Converge in 2026
By Sophie Chen
After two years of corrections, UK fintech valuations are showing signs of stabilisation as public market comparables and private funding rounds converge around more sustainable multiples.
VC Investment in UK Fintech Tops £4.8 Billion in 2025, Reclaiming European Crown
By Sophie Chen
Venture capital investment in UK fintech companies totalled £4.8 billion in 2025, according to Innovate Finance's annual report, marking a 35 percent year-on-year increase and restoring the country's lead over Germany and France.
Confirmation of Payee Expansion Reaches 99 Per Cent Coverage Across UK Payment Networks
The Confirmation of Payee system now covers 99 per cent of UK Faster Payments transactions, marking a milestone in the fight against misdirected payments and APP fraud.
Amazon and eBay Launch 'Pay by Bank' in the UK, Marking Open Banking's Mainstream Breakthrough
Amazon and eBay have both launched Pay by Bank for UK customers via TrueLayer, allowing direct bank-account payments at checkout — a watershed moment for open banking adoption.
Buy Now, Pay Later Finally Comes Under FCA Regulation — 10.9 Million UK Users Affected
The FCA has confirmed that BNPL lenders must obtain authorisation and conduct affordability checks from 15 July 2026, ending years of debate over the fast-growing, largely unregulated sector.
Machine Learning Credit Scoring Opens Lending to 2.4 Million Previously Excluded Britons
Alternative credit scoring models powered by machine learning have enabled UK lenders to approve loans for 2.4 million consumers who were previously deemed uncreditworthy by traditional scoring methods. The shift is being hailed as a breakthrough for financial inclusion.
UK Payment Infrastructure Review Recommends Single Oversight Body for Clearing Systems
An independent review commissioned by HM Treasury has recommended consolidating oversight of the UK's payment clearing systems under a single body, replacing the current split between Pay.UK and the Bank of England.
E-Money Firms Face Tighter Safeguarding Rules Under FCA Overhaul
The FCA has finalised new safeguarding requirements for e-money and payments institutions, mandating that customer funds be held in statutory trusts and introducing daily reconciliation obligations.
Railsr Completes Restructuring and Relaunches as Embedded Finance Platform for UK B2B Payments
Railsr, formerly Railsbank, has completed its corporate restructuring and relaunched with a sharpened focus on embedded B2B payments and cross-border treasury services for UK mid-market firms.
Open Banking Pioneer TrueLayer Closes £90M Series F to Build Pan-European Payment Network
By Oliver Trent
TrueLayer has raised £90 million in a Series F round led by Addition and Northzone, as the open banking infrastructure provider expands its instant account-to-account payment network across 14 European markets.
UK Fintech Consolidation Accelerates as Checkout.com Acquires Modulr for £800 Million
By Oliver Trent
Payments processor Checkout.com has acquired embedded payments platform Modulr in an £800 million deal, as larger UK fintechs begin absorbing smaller competitors in a wave of domestic consolidation.
Bank of England Launches Phase Two of Digital Pound Consultation
The Bank of England and HM Treasury have opened a second public consultation on the digital pound, focusing on privacy safeguards, programmability features, and the role of fintech firms in distributing a UK central bank digital currency.
Deepfake Threats in Banking Escalate as AI-Generated Fraud Hits UK Financial Institutions
UK banks are scrambling to deploy deepfake detection tools after a spate of AI-generated voice and video fraud attempts targeting high-value corporate accounts.
UK Retains #2 Spot Globally as Fintech Investment Reaches $3.6 Billion in 2025
By Sophie Chen
Innovate Finance's annual report shows the UK attracted $3.6 billion across 534 fintech deals in 2025, reclaiming second place globally behind the United States.
Cross-Border Remittance Costs Fall to Record Low for UK-to-South Asia Corridor
By Marcus Webb
The average cost of sending £200 from the UK to India and Pakistan has fallen below 3% for the first time, driven by fintech competition and regulatory pressure on high-street banks.
UK Government Launches £500M Fintech Growth Fund to Back Scaling Companies
The Treasury has unveiled a £500 million Fintech Growth Fund backed by British Patient Capital and cornerstone commitments from Barclays, HSBC, and Lloyds, targeting Series B and C rounds for UK-headquartered fintech firms.
London Forecasted to See 37% Surge in Fintech Hiring in 2026
By Marcus Webb
Morgan McKinley research projects a 37% year-on-year rise in London fintech vacancies, with the capital accounting for 70% of all UK fintech roles as demand for developers and risk experts soars.
NatWest Launches 2026 Fintech Programme Targeting Agentic AI
NatWest Group has opened applications for its 12-week fintech accelerator, specifically targeting startups using agentic AI to reshape customer experience in financial services.
EU Publishes PSD3 Draft With Major Implications for UK Open Banking
The European Commission's finalised PSD3 text introduces sweeping changes to payment services regulation that could force the UK to update its own framework to maintain cross-border interoperability.
Griffin Obtains Full UK Banking Licence, Targets Developer-First BaaS Market
By Priya Sharma
Banking-as-a-Service startup Griffin has received its full UK banking licence from the PRA and FCA, becoming the first developer-focused BaaS provider to achieve authorisation.
UK Real-Time Payments Volumes Outpace Europe as Open Banking Drives Adoption
New data from the European Payments Council shows the UK processes more real-time payment transactions per capita than any EU member state, with open banking-initiated payments now accounting for 12% of all Faster Payments volume.
UK Finance Fraud Report Reveals Shifting Tactics as Criminals Exploit Digital Channels
The annual UK Finance fraud report shows total losses exceeding £1.5 billion in 2024, with criminals increasingly targeting digital-only channels and exploiting social media platforms.
FCA Overhauls Payment Safeguarding Rules in Biggest Change Since Regime's Inception
New FCA safeguarding rules effective 7 May 2026 require daily reconciliation, monthly returns, and annual audits for payment firms — after finding collapsed firms had average shortfalls of 65% of customer funds.
Atom Bank Pioneers Four-Day Working Week Model as Fintech Industry Takes Note
By Marcus Webb
Atom Bank's pioneering four-day working week has delivered measurable productivity gains and reduced staff turnover, prompting other fintechs to consider following suit.
Revolut Achieves £33 Billion Valuation in Secondary Share Sale Ahead of Expected IPO
By Oliver Trent
Revolut shares changed hands at a £33 billion valuation in a secondary transaction led by Coatue Management, fuelling speculation that the UK's most valuable fintech is preparing for a London Stock Exchange listing in 2026.
Payroll Fintech PayFit Raises £85M to Expand Embedded Financial Services for UK SMEs
French-British payroll platform PayFit has raised £85 million in a Series E round to deepen its embedded finance offering, including salary advances and pension auto-enrolment for UK small businesses.
Account-to-Account Payments Threaten Visa and Mastercard's UK Dominance
A new report from UK Finance warns that account-to-account payments could capture up to 25 per cent of point-of-sale card volume by 2030, forcing card networks to rethink their pricing strategies.
Revolut Secondary Share Sale Values Neobank at £38 Billion Ahead of Listing Decision
By Oliver Trent
Revolut has facilitated a £750 million secondary share sale valuing the neobank at £38 billion, as early employees and investors cash out ahead of a highly anticipated public listing decision.
Faster Payments Hits One Billion Monthly Transactions as Real-Time Infrastructure Strains
The UK's Faster Payments system has surpassed one billion transactions in a single month for the first time, prompting Pay.UK to accelerate its New Payments Architecture programme amid capacity concerns.
KYC and AML Technology Spending Hits Record £2.1 Billion Across UK Financial Services
UK banks and fintechs are projected to spend a record £2.1 billion on KYC and AML technology in 2025, driven by regulatory pressure and the rising complexity of financial crime.
Fintech Licensing Backlog Reaches 14 Months as FCA Faces Capacity Crunch
UK fintech firms are waiting an average of 14 months for FCA authorisation, up from nine months in 2023, prompting calls for urgent reform of the regulator's licensing processes.
Zopa Surpasses £5 Billion in Deposits as Savings-Led Strategy Pays Off
By Priya Sharma
Zopa has crossed £5 billion in customer deposits, cementing its position as one of the UK's fastest-growing digital banks with a savings-first approach.
Open Banking Data Reshapes Alternative Credit Scoring in the UK
A growing number of UK lenders are adopting open banking-based credit scoring models that look beyond traditional credit bureau data, potentially unlocking access for millions of underserved borrowers.
Shopify and Stripe Partner to Bring Embedded Invoice Financing to UK Merchants
Shopify and Stripe have launched a joint embedded finance offering that gives UK e-commerce merchants instant access to invoice financing directly within their storefront dashboards.
Agentic AI Arrives in UK Banking as Revolut and Monzo Launch Autonomous Finance Tools
By Priya Sharma
Revolut and Monzo are pioneering agentic AI systems that can autonomously manage bill payments, negotiate better deals, and rebalance savings on behalf of customers. The technology marks a shift from reactive chatbots to proactive financial agents.
Worldpay Charts Independent Course After FIS Separation with £2.5bn UK Investment Plan
By Oliver Trent
Worldpay has unveiled a £2.5 billion technology investment plan following its formal separation from FIS, with the payments giant pledging to modernise its UK acquiring infrastructure and expand merchant services.
London SPAC Backed by Hedosophia Targets Wealthtech Acquisition
By Oliver Trent
A London-listed special purpose acquisition company backed by Hedosophia has entered exclusive talks to merge with a prominent UK wealthtech firm in a deal that would value the combined entity at £3.5 billion.
Onfido and Jumio Battle for Dominance in UK Identity Verification Market
The UK identity verification market is intensifying as Onfido and Jumio compete for fintech contracts amid rising regulatory demands for robust KYC onboarding.
Chase UK Reaches 2 Million Customers but Faces Questions Over Path to Profitability
By Priya Sharma
JPMorgan's Chase UK has crossed the 2 million customer mark, but mounting losses have sparked debate about the long-term viability of the American banking giant's UK digital venture.
FCA Sets March 2026 Deadline for Operational Resilience Compliance
UK financial firms face a hard March 2026 deadline to meet the FCA's operational resilience requirements, with the regulator warning that firms unable to remain within impact tolerances for critical services risk enforcement action.
ClearBank Crosses £1 Billion in Deposits as BaaS Demand Surges Among UK Fintechs
By Sophie Chen
ClearBank, the UK's first new clearing bank in over 250 years, has surpassed £1 billion in customer deposits as demand for its Banking-as-a-Service infrastructure accelerates.
Zilch Secures £200m Funding Round to Expand Credit Product Range
London-based fintech Zilch has raised £200 million in a Series D round, valuing the company at £2.5 billion as it plans to move beyond BNPL into broader consumer credit.
UK Stablecoin Legislation Clears Parliament, Paving Way for Regulated Issuance
By Raj Patel
Parliament has passed the Payment Stablecoins Act, creating a bespoke regulatory regime that allows authorised firms to issue sterling-backed stablecoins for use in UK payment systems.
Checkout.com Raises £600M in Down Round but Insists Fundamentals Are Strong
By Oliver Trent
Payments giant Checkout.com has raised £600 million in a Series E round at a reduced £8 billion valuation, as the company pivots toward embedded finance and stablecoin settlement infrastructure.
SumUp Rolls Out Tap-to-Pay for UK Small Businesses as Contactless Ceiling Rises
SumUp has launched its Tap to Pay on iPhone service across the UK, allowing sole traders and micro-merchants to accept contactless payments of up to £100 without any additional hardware.
TrueLayer Raises £130 Million to Expand Pay by Bank Across Europe
London-based Open Banking infrastructure provider TrueLayer has closed a £130 million Series E round as it bets on Pay by Bank becoming the dominant checkout option across European e-commerce.
Stripe Acquires GoCardless in £2.1 Billion Cross-Border Deal
US payments giant Stripe has agreed to acquire London-based direct debit platform GoCardless for £2.1 billion, marking the largest cross-border fintech acquisition involving a UK target this year.
Consumer Duty Rules Force 47 Fintech Firms to Overhaul Fee Structures
Nearly 50 UK fintech firms have been required to restructure their pricing models following FCA enforcement action under Consumer Duty rules, with the regulator warning that hidden charges remain a persistent concern.
Clearpay Launches AI-Powered Credit Limits Amid Tighter Regulatory Scrutiny
Clearpay has introduced dynamic AI-driven credit limits that adjust in real time based on user spending behaviour, as the BNPL sector prepares for full FCA regulation.
Bank of England Advances Digital Pound Pilot with High Street Banks
The Bank of England has launched a live pilot programme for the digital pound, partnering with five major UK banks to test retail CBDC transactions across 10,000 volunteer consumers.
Variable Recurring Payments Go Live With Major UK Billers
The UK's largest energy suppliers and broadband providers have begun accepting Variable Recurring Payments, marking a pivotal moment for Open Banking's push beyond one-off transactions.
Checkout.com Secures Major Airline Contracts in Push for UK Payments Dominance
London-based Checkout.com has signed payment processing deals with three major European airlines, including British Airways parent IAG, as it targets high-value verticals in an increasingly competitive acquiring market.
PSR Scam Prevention Mandates Force Payment Firms to Overhaul Compliance Systems
New regulatory mandates from the Payment Systems Regulator are compelling fintechs and banks to implement real-time fraud screening or face significant penalties.
Bridgepoint Completes £1.4 Billion Buyout of Funding Circle
By Oliver Trent
Private equity firm Bridgepoint has finalised its acquisition of SME lender Funding Circle in a £1.4 billion take-private deal, delisting the company from the London Stock Exchange after six years as a public company.
iwoca Reports Record Lending Year as UK SMEs Turn to Alternative Finance
Alternative lender iwoca has disbursed over £1.5 billion to UK small businesses in the past twelve months, marking a record year driven by demand for flexible credit products.
Klarna Reports 40% Surge in UK Users as BNPL Demand Accelerates
Klarna has announced that its UK user base grew by 40% year-on-year, reaching 18 million active accounts as consumers increasingly turn to buy now, pay later for everyday purchases.
Tide Secures £100M Credit Facility to Expand SME Lending Across the UK
Business banking platform Tide has closed a £100 million credit facility with institutional investors, aiming to triple its SME lending book by the end of 2025.
UK Banks Deploy AI Fraud Detection Systems as Scam Losses Hit £1.2 Billion
Major UK lenders are racing to implement AI-powered fraud detection as authorised push payment scams surge to record levels. Barclays, HSBC, and Lloyds have collectively invested over £400 million in machine learning systems designed to flag suspicious transactions in real time.
UK Open Banking Payments Surpass 12 Million Monthly Transactions
Open Banking payment volumes in the UK have reached a new milestone, with monthly transactions exceeding 12 million for the first time as consumer adoption accelerates.
Wise Reports Record UK Transfer Volumes as Cross-Border Demand Surges
Wise has processed over £32 billion in cross-border transfers from UK accounts in the past quarter, marking a 41% year-on-year increase driven by freelancer payments and SME trade flows.
APP Fraud Losses Surge Past £300 Million as UK Banks Face Mounting Pressure
Authorised push payment fraud losses reached £341 million in the first half of 2025, prompting renewed calls for mandatory reimbursement enforcement across the banking sector.