How Is UK Fintech Changing The Landscape Of Payment Tech?

It was Fintech Week in London and the government took the time to look at how it wants payments to work over the next few years. A new package targets faster innovation and streamlined rules, as well as a system that keeps up with new tech. The plan covers everything from stablecoins to AI in payments.

Economic Secretary to the Treasury Lucy Rigby said, “Fintech is true British success story, and we are backing the industry to maintain its competitive edge and go even further and faster in driving growth.” She added, “Today’s package is our latest stake in the ground as we build a payments ecosystem that is secure, competitive and fully equipped to harness the opportunities created by rapid technological change.”

The government plans to bring payment services and electronic money into one framework. That covers tokenised payments such as stablecoins and tokenised deposits. It also plans to give the Financial Conduct Authority new powers over Open Banking, and to explore how rules should apply when AI systems carry out payments.

Chris Woolard CBE, appointed as Wholesale Digital Markets Champion, said, “It’s an honour to be appointed Digital Markets Champion for the UK’s Wholesale Financial Markets Digital Strategy. As financial markets increasingly move away from manual processes to digital, tokenised systems, collaboration and an open two-way dialogue between the private and public sectors will best support the Strategy’s success, and will ultimately enhance the UK’s global competitiveness as a leader in digital markets.”

The package also brings £1 million in funding for the Centre for Finance, Innovation and Technology and plans to bring the Payment Systems Regulator into the FCA. The government says over 3,000 fintech companies operate in the UK, attracting more than £2.6 billion in investment last year, second only to the United States.
 

What Does AI Mean For Payments?

 
AI is moving into payments and the Financial Conduct Authority says the next phase will centre on “agentic commerce”, where systems act on behalf of users.

Jessica Rusu, chief data, information and intelligence officer at the FCA, said, “Agentic commerce will change how we transact, how decisions are made.” She explained how this could work in daily life, “Instead of clicking ‘buy’, we will encode our preferences, permissions and constraints – allowing intelligent systems to transact on our behalf, within guardrails – optimising for price, convenience, and even long-term financial wellbeing.”

This development puts regulators in a position where oversight needs a rethink. Rusu said, “AI is already reshaping financial services, challenging how we think about accountability, trust and control. And that demands a fundamentally new approach.” The FCA plans to use its AI Lab to guide companies through technical and regulatory questions.
 

 
The Lab already works with companies on early stage ideas. According to the FCA, firms said the support reduced development time from a year to three months. The next phase will extend partnerships with NVIDIA and Naya One, and open new testing environments for payment use cases.

Philip Belamant, co founder and CEO of Zilch, said, “AI will fundamentally change how people interact with money, shifting payments from something consumers actively manage to something that is intelligently managed and optimised in the background.” He added, “We welcome the government’s focus on adapting payment regulation for AI-driven transactions. The UK has a real opportunity to lead globally in enabling agentic finance, helping consumers benefit from smarter, more efficient ways to manage their money.”
 

How Is Open Banking turning Into Open Finance?

 
Open Banking has already reached scale in the UK. The FCA says more than 16 million people use it, and 75% of adults use at least one fintech service. The next stage is Open Finance, which brings more financial data into one place.

Rusu explained, “Today, most people’s financial lives remain fragmented – current accounts, pensions, mortgages all in different places. Open Finance changes that.” She added, “When we talk about Open Finance, we’re talking about the foundations of a more intelligent financial system.”

The FCA wants financial data stored securely in digital wallets through Smart Data. This would allow systems to search for better products based on a person’s full financial profile. The regulator says this will support agentic commerce, where systems can act across accounts and services.

The government’s plan supports this work. It plans to consult on updates to payment rules, with a view to making space for tokenised money and AI driven transactions. It also wants to cut administrative work for companies offering stablecoin payments.

Janine Hirt, CEO of Innovate Finance, said, “The UK has all the ingredients to be a global superpower in fintech, payments and capital markets by leading in open banking, digital assets and stablecoin, and agentic AI. Unleashing innovators and championing transformation in markets is critical. We look forward to mobilising industry to work with Chris Woolard, Government and regulators to drive this strategic ambition and deliver at pace.”

Richard Swales, Chief Risk & Compliance Officer, Paysafe also commented. He said, “This announcement is a positive step for the UK’s payments ecosystem. As digital wallets and next-generation payment methods become central to how consumers transact, getting the regulatory and technology foundations right is key to driving growth, competition and trust.

“For the industry, this is about enabling innovation while strengthening security. We’re already seeing this shift firsthand – including the growing role of crypto as a form of wallet-based payment – and initiatives like this are vital to maintaining the UK’s leadership in global fintech.”