AI drives next phase of payments

By Milan Rojan

The UK’s financial services sector has welcomed the Financial Conduct Authority’s (FCA) latest review into the impact of artificial intelligence (AI) on retail financial services, with industry participants calling for modernised financial infrastructure to support the next phase of AI-driven innovation.

The FCA’s review has examined the growing role of AI across financial services, including the emergence of agentic finance, as firms increasingly explore the use of AI to automate financial decision-making and payment processes. The regulator’s work forms part of broader efforts to ensure the UK’s regulatory framework keeps pace with technological developments while maintaining consumer protection.

Responding to the review, OpenPayd said the findings highlighted the need to develop financial infrastructure capable of supporting AI-powered payments and digital financial services. The company said advances in AI are reshaping payments technology, security and customer interactions, creating opportunities for the financial services sector to modernise existing systems.

OpenPayd said agentic payments are expected to play a growing role in the future of financial services by enabling AI-driven systems to manage funds and execute transactions on behalf of consumers. The company added that payment infrastructure providers will have an important role in ensuring identity verification, transaction authorisation and fraud detection remain robust as adoption increases.

An OpenPayd spokesperson said: “It’s positive to see the FCA’s continued efforts to update and upgrade the UK’s financial system. With AI reshaping payments technology, security and consumer behaviour, the review is an important step in bringing the UK’s financial infrastructure in line with a changing world.”

The company also said future regulatory developments should support fair competition across the financial services ecosystem, enabling banks, FinTechs, payment providers and digital asset businesses to innovate alongside one another while maintaining appropriate safeguards.

The FCA’s review has come as financial institutions continue to invest in AI across areas including customer service, fraud prevention, risk management and payments. Industry participants have increasingly argued that clear regulatory frameworks and resilient payment infrastructure will be essential to supporting wider adoption of AI-enabled financial services while protecting consumers and maintaining confidence in the UK’s financial system.