The Payments Newsletter including Digital Assets & Blockchain, May 2026

On 8 May 2026, the EU's Anti-Money Laundering Authority (AMLA)'s consultation on regulatory technical standards for customer due diligence closed. For firms operating in the payments sector, uncertainty around key terms and concepts in Article 22(3) (vIBANs) could give rise to material unintended consequences.

Take a look at this Our Thinking article for a detailed analysis of the consultation and the steps banks and payment firms should consider taking. We also have a dedicated AMLA Hub where you can find the latest trends and developments in this area.

On 1 July 2026, the transition periods under the EU's Markets in Crypto-Assets Regulation (MiCA) will come to an end. When its first draft was published on 24 September 2020, MiCA promised to be a pillar of EU financial services legislation, positioning the EU as the first major jurisdiction to establish a comprehensive regulatory framework for crypto markets. With the transition periods now concluding, this marks a natural point to assess MiCA's impact. While it has delivered greater clarity in a number of areas, its implementation has also revealed tensions between regulatory ambition and market reality, and between consumer protection as a stated goal and consumer access as a practical outcome.

Take a look at this Our Thinking article for a detailed analysis of MiCA's performance against its objectives and the potential next steps for the EU regime.

United Kingdom: Government announces new measures to boost UK’s competitiveness in payments and digital markets

On 21 April 2026, the government announced a package of measures aimed equipping the UK’s payments sector for the future of rapid financial innovation. This was briefly covered as a ‘stop press’ item in the April 2026 edition of the Newsletter; further detail on the key proposals is set out below:

• In one of the most significant announcements, the regulatory regimes for payment services and e-money will be integrated into the Financial Services and Markets Act 2000 (FSMA). This aims to establish a single, coherent framework for both traditional and tokenised payments, including stablecoins and tokenised deposits;
• The government has confirmed its intention to regulate stablecoins used for payments purposes, where issued under the new regulated activity for stablecoin issuance in the UK. Related amendments to the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 have also been published in a draft statutory instrument with accompanying policy note (see the related item under the Digital Assets Regulatory Developments section below);
• The government is considering how the regulatory framework may need to adapt to accommodate AI-driven financial activity, in particular agentic payments;
• The FCA will receive new powers to regulate the future of open banking, including underpinning the development of new open banking payments within commercial schemes;
• Chris Woolard CBE is being appointed as the new Wholesale Digital Markets Champion to lead work on delivering a more efficient and competitive financial sector by building a tokenised wholesale financial markets system;
• The government has published its response to its consultation on bringing the PSR within the FCA (see the next item below, and note also the separate item below on the Financial Services and Markets Bill 2026-27 which includes provisions relating to the PSR/FCA consolidation);
• The government has announced an additional £1 million in funding for the Centre for Finance, Innovation and Technology (CFIT) from April 2026, enabling it to continue supporting collaboration and solving pressing issues across the fintech sector.

In terms of next steps, a government consultation on wider payment services reforms is expected in the coming months.

For more on the government’s plan, take a look at this Our Thinking article.

United Kingdom: Government publishes response to consultation on new “streamlined” regulatory framework for payment systems

On 21 April 2026, HM Treasury (HMT) published its response to the September 2025 consultation on a new “streamlined” regulatory framework for payment systems, setting out feedback from respondents and the government’s intended policy direction.

Among other things, the government has confirmed the following:

• Broadly, the Payment Systems Regulator’s (PSR) functions, objectives, “have regard” requirements, regulatory powers, and oversight and accountability framework will be transferred to the FCA by integrating them within the FCA’s pre-existing legal framework under the Financial Services and Markets Act 2000, to the extent practicable;
• The PSR’s functions under assimilated payment services law will also be maintained and transferred to the FCA in line with the general policy of consolidation. However, these will be reviewed and reformed as part of wider planned reforms to assimilated payment services law, with a consultation expected in Q2 2026;
• Pre-existing PSR requirements, technical standards, other legal instruments, and guidance (including the mandatory reimbursement regime for APP scams) will also be transferred to the FCA, following which the FCA will decide on its approach under the new legislative framework;
• A designation regime will be retained to bring payment systems in and out of scope of FCA regulation, reflecting the regime used in the Financial Services (Banking Reform) Act 2013;
• With reference to the recent High Court decision on the PSR’s ability to cap certain fees relating to payment systems (see the January 2026 edition of our Newsletter), the ability to impose price controls or regulate fees and charges in appropriate circumstances to address competition issues in the market will be carried over to the FCA;
• The access regime for payment systems will be simplified; and
• The framework for appealing regulatory decisions will be streamlined to reduce complexity for industry.

In terms of next steps, the required legislative provisions were subsequently introduced to Parliament on 19 May 2026 in the Financial Services and Markets Bill 2026–27, previously referred to as the Enhancing Financial Services Bill in the King’s Speech (see the separate items below). Pending the final legislation, the PSR and FCA are focusing on areas where external stakeholders will be affected and where greater clarity can support a smooth transition.

For more detailed analysis of HMT’s consultation response, see this Our Thinking article.

United Kingdom: FCA publishes Innovation Insights Report

On 20 April 2026, the FCA published the Innovation Insights Report for 2025, which identifies where innovation is accelerating and how the FCA’s innovation services are supporting firms. In relation to the payments sector, the report highlights that:

• The payments sector continues to feature prominently in larger deals both in the UK and globally and remains one of the leading sectors in the UK fintech market by investment size, reaching $1.0 billion;
• Applications to the FCA’s Regulatory Sandbox and Innovation Pathways increased by 49% in 2025, with 35% originating from the payments and digital assets sector;
• The key innovation trends in payments and digital assets include blockchain-enabled payments, embedded finance and financial inclusion; and
• The FCA has launched the Pre-Application Support Service (PASS), which supports early engagement for firms in sectors including payments and cryptoassets.

United Kingdom: FCA publishes speech on supporting fintech firms with next phase of AI Lab

On 21 April 2026, the FCA published a speech by Jessica Rusu, its Chief Data, Information and Intelligence Officer, on supporting fintech innovation through the next phase of its AI Lab. Ms Rusu confirmed the FCA does not plan to introduce new AI rules, but will use insights from the Lab to identify good and poor practices, to be published later in 2026. The next phase expands support through increased computing capacity via an extended NVIDIA partnership, continued post-Lab support and scaling of the Supercharged Sandbox with NayaOne. Ms Rusu also mentioned the launch of a second cohort for AI Live Testing, covering wholesale and retail use cases such as agentic payments and AI in financial advice and credit scoring. Testing will conclude by the end of 2026, with an evaluation report expected in Q1 2027. Support for fintech scale-up was also highlighted, with reference to the fact that the FCA's Scale-Up Unit is open for expressions of interest from solo regulated firms.

United Kingdom: FCA publishes good and poor practice guidance on managing potential risks from inactive appointed representatives

On 21 April 2026, the FCA published findings from its review of good practice and areas for improvement identified in its supervisory work on inactive appointed representatives (ARs).

Key findings include:

• Where ARs do not carry out regulated activities, principals still need to have effective oversight of their ARs and cannot rely on transaction oversight as a source of information.
• As principal firms are responsible for AR oversight and liable for harm caused by their ARs, the FCA expects them to:
  • Review arrangements for ARs that are not routinely undertaking regulated activities and assess whether oversight, monitoring and governance remain appropriate. This includes actively and appropriately engaging with ARs through oversight, and using robust data quality and governance, including additional measures when an AR is inactive;
  • Accurately report revenue generated by ARs, together with reasons for periods of inactivity, through the REP025 regulatory return; and
  • Monitor the continued appropriateness of AR relationships and take timely action to terminate arrangements where appropriate, ensuring that the FCA Register remains up to date and risks are mitigated.

Other points emphasised in the FCA’s findings include:

• Principals should be monitoring ARs’ consumer-facing materials: Principal firms should ensure that ARs use correct terminology in public materials. The FCA highlighted a growing trend where ARs incorrectly refer to themselves as “authorised representatives”. Firms should review the relevant rules, including GEN 4 Annex 1 (General Provisions of the FCA Handbook), which sets out statutory status disclosure requirements under GEN 4.3.1R; and
• AR agreements need to meet regulatory requirements: AR agreements should include a clear acceptance of responsibility by principals for the regulated activities carried out by ARs, and must contain the required terms under section 39 of the Financial Services and Markets Act 2000 and SUP 12.5 (Supervision manual of the FCA Handbook).

United Kingdom: FCA publishes Open Banking Future Entity Industry Evaluation Recommendation Report

On 1 May 2026, the FCA published an independent evaluation report prepared by KPMG, assessing proposals to establish a future Open Banking standards-setting body, referred to as the Future Entity (FE).

Key points covered by the report include:

• Background: The FCA has been supporting industry participants in developing a standards-setting body capable of becoming the FE, which is expected to act as the primary body for setting Open Banking API standards in the UK, supporting innovation, consistency and clarity across the ecosystem.
• What did the evaluation consider? The evaluation assessed proposals from Open Banking Limited (OBL) and the Smart Data Group (SDG) across six categories: governance, independence and ethical framework; industry support and stakeholder engagement; technical capability; funding and financial feasibility; risk management and security; and operational feasibility.
• Who was involved? KPMG facilitated an industry-led assessment involving participants including Lloyds Banking Group, Mastercard, NatWest, Nationwide, Revolut, Santander and Spotify.
• What were the findings? The OBL proposal received higher scores than the SDG proposal across all categories, with a high degree of consistency among panel members. Reasons included the OBL’s practical readiness, proposed governance structures, credible mobilisation plan and demonstrated expertise.

The FCA is expected to publish a further KPMG report outlining considerations for operationalising the FE in the coming weeks. The process is without prejudice to how the FCA may exercise its powers under the Data (Use and Access) Act (DUAA), and a formal appointment will follow once oversight powers are conferred under the Long Term Regulatory Framework, expected by the end of 2026. Industry participants may use the findings to inform alignment on the design and establishment of the FE during the interim period.

United Kingdom: DRCF publishes 2025/26 Annual Report and 2026/27 Workplan

On 27 April 2026, the Digital Regulation Cooperation Forum (DRCF), comprising the Competition and Markets Authority (CMA), FCA, Information Commissioner's Office (ICO), and Ofcom, published its 2025/26 Annual Report and 2026/27 Workplan.

The Annual Report highlights the launch of the DRCF's Thematic Innovation Hub, with “agentic AI” selected as its first theme to engage with organisations across regulated sectors that are considering, or beginning to develop and deploy, agentic systems. Agentic AI has also been a key focus of the DRCF's Horizon Scanning programme. The DRCF has published a separate Future of Agentic AI paper, further details of which were covered in the April 2026 edition of our Newsletter.

The 2026/27 Workplan sets out actions to promote innovation, with agentic and generative AI as key focuses, building on prior work through the Thematic Innovation Hub and Horizon Scanning programme.

United Kingdom: FCA updates Payments and E-Money Approach Document

On 7 May 2026, the FCA published an updated version of its Payment Services and Electronic Money – Our Approach document.

The updated approach document reflects recent regulatory developments, including:

• Safeguarding framework: updates to reflect the entry into force on 7 May 2026 of the FCA’s interim (stage 1) changes to its safeguarding regime for payments and e-money firms (see this Our Thinking article); and
• Termination of framework contracts: changes to align with new rules on the minimum notice period for contract terminations introduced by the Payment Services and Payment Accounts (Contract Termination) (Amendment) Regulations 2025 (SI 2025/688), which came into force on 28 April 2026 (see this Our Thinking article).

The FCA has also updated its webpage on safeguarding requirements for payment and e-money institutions to reflect the May 2026 changes.

United Kingdom: UK Finance publishes Plan for Growth report

On 11 May 2026, UK Finance published a "Plan for Growth: From Strategy to Delivery" report setting out nine mutually reinforcing financial services reforms (the Growth Enablers) to support the government’s broader growth agenda.

One of these Growth Enablers is “supporting payments modernisation and innovation”. The report estimates that modernising the UK’s retail payments infrastructure could generate up to £9 billion in annual economic uplift. It calls on regulators to deliver four key actions during 2026:

• HM Treasury (HMT) and the FCA to provide greater regulatory flexibility for the Great British Tokenised Deposit initiative;
• HMT, the Bank of England (BoE) and industry to lock in reform by empowering DeliveryCo to deliver next-generation payments infrastructure;
• HMT and the FCA to lock in reform by legislating for a commercially sustainable open banking framework, with HMT delivering the necessary secondary legislation in 2026 and the FCA finalising interface rules for the long-term regulatory framework by Q1 2027; and
• HMT, the BoE and the FCA to lock in reform by finalising the stablecoins framework, enabling the development of regulated, interoperable forms of digital money that complement the existing monetary system, alongside a decision on the digital pound.

United Kingdom: King’s Speech 2026 outlines upcoming legislative programme for financial services

On 14 May 2026, the government set out its legislative programme for the next parliamentary session in the King’s Speech and accompanying background briefing notes.

Key measures of relevance to financial services include:

• Enhancing Financial Services Bill: Now introduced to Parliament as the Financial Services and Markets Bill 2026-27 (see the next item below) and due to be prioritised in the legislative process, this Bill will deliver key elements of the 2025 Leeds Reforms.
• Regulating for Growth Bill: Building on the government’s 2025 Regulation Action Plan, key provisions will be: (i) a strengthened Growth Duty aimed at increasing the importance of growth considerations in regulatory decision-making; and creation of cross-economy “sandboxing powers” for businesses to test cutting-edge new products and technologies (for example, in AI and defence technology) safely and then scale up delivery of changes more quickly.

Other relevant planned legislation includes:

• Digital Access to Services Bill to establish the legal framework for the government to create, issue and use Digital ID, including provisions to enable its use in priority areas across the public and wider economy (expected to be published in late autumn 2026);
• Cyber Security and Resilience Bill (carried over from the previous parliamentary session) to expand the remit of existing regulations to strengthen protection of critical services; and
• National Security Bill to reform the cyber landscape, including by updating the Computer Misuse Act 1990.

For more on the King’s Speech, see this Our Thinking article.

United Kingdom: Financial Services and Markets Bill 2026-27 introduced to Parliament

On 19 May 2026, the Financial Services and Markets Bill 2026-27 (the Bill), previously referred to as the Enhancing Financial Services Bill in the King’s Speech (see the related item above), was introduced to Parliament. Explanatory Notes to the Bill as introduced have also been published.

The Bill pulls together several significant strands of work from the government’s 2025 Regulation Action Plan, FS Growth and Competitiveness Strategy and Leeds Reforms – making this the first major piece of financial services regulatory reform in some time.

Key provisions include those relating to:

• Consolidation of the Payment Systems Regulator (PSR) into the FCA (see the separate item above on HMT’s related consultation response);
• Financial Ombudsman Service (FOS) reform;
• Senior Managers and Certification Regime (SMCR) reform;
• Updates to the statutory framework for ring-fencing;
• Consumer Credit Act (CCA) reform;
• Reforms to the appointed representatives regime;
• Introduction of a provisional licences authorisation regime for early-stage firms;
• A new power for HMT to introduce targeted secondary legislation or empower the FCA to make rules to protect access to in-person banking services, linked to an HMT independent review on the same topic announced on 14 May 2026; and
• A new power for the Secretary of State or HMT to amend and update provisions on recovery powers relating to illicit cryptoassets in the Proceeds of Crime Act 2002, the Anti-Terrorism, Crime and Security Act 2001, and the Terrorism Act 2000 to reflect future technological, market and regulatory developments.

The Bill received its first reading in the House of Lords on 19 May 2026, with second reading scheduled for 8 June 2026.

Take a look at this Our Thinking article for an overview of the main areas covered by the Bill and some indication of next steps that firms will need to be on the lookout for.

United Kingdom: Bank of England consults on extending RTGS and CHAPS settlement hours

On 18 May 2026, the Bank of England (BoE) published a consultation paper on its proposed next steps for extending Real-Time Gross Settlement (RTGS) and CHAPS settlement hours towards near 24/7 operation. This is part of the regulators’ broader initiative on tokenisation in wholesale markets (see the related item in the Digital Assets Regulatory Developments section below).

The consultation follows the BoE’s February 2026 announcement of the implementation of an early morning extension to CHAPS settlement hours from September 2027, with the opening time moving from 6:00 am to 1:30 am.

The BoE is consulting on two further steps towards near 24/7 settlement:

• Introducing an additional settlement day at the weekend (most likely Sundays), as well as settlement on certain UK bank holidays, although this is not expected before 2029; and
• Extending settlement hours on existing weekdays (Monday to Friday) as a second step, which is not expected before 2031.

Together, these steps would extend RTGS operation to 22 hours, six days a week (Sunday to Friday), with participants also able to undertake liquidity transfers between their own accounts on Saturdays, except during scheduled maintenance windows. The BoE also sets out longer-term options, including extending settlement to 22 hours a day, seven days a week, or moving to near-continuous settlement (23.5 hours a day, seven days a week). The extension of RTGS and CHAPS settlement hours forms part of the BoE’s broader roadmap for the renewed RTGS service (RT2).

The deadline for responses is 10 August 2026.

United Kingdom: PSR consults on financial reporting direction relating to remedies from market review of card scheme and processing fees

On 21 May 2026, the Payment Systems Regulator (PSR) published a consultation paper (CP26/1) proposing a direction and guidelines on a targeted regulatory financial reporting remedy aimed at addressing the issues identified during its market review of Mastercard's and Visa's scheme and processing fees:

• Draft specific direction to Mastercard and Visa on regulatory financial reporting - containing the core financial reporting requirements; and
• Draft regulatory accounting guidelines - providing more detail and setting out how the schemes must prepare their submissions.

The remedy is intended to ensure that the PSR receives consistent and reliable financial information on the schemes' UK card businesses, so that it can assess profitability and whether market power may be resulting in outcomes that are not consistent with effective competition.

The PSR will keep the scope and operation of the proposed direction under review, as further intervention may be needed in future due to new information or market developments.

The consultation closes on 3 July 2026.

European Union: PSD3 and PSR final compromise texts published

On 23 April 2026, the Council of the EU published notes from its General Secretariat to the Permanent Representatives Committee (COREPER) setting out final compromise texts for the legislative proposals on:

• Directive on payment services and electronic money services in the internal market (PSD3);
• Regulation on payment services in the internal market (PSR).

The Council also published an "I" item note from the General Secretariat of the Council, suggesting that COREPER approves the text of the draft PSD3 and draft PSR with a view to reaching an agreement at second reading with the European Parliament.

European Union: ECB partners with European standard setters to facilitate digital euro payments

On 24 April 2026, the European Central Bank (ECB) signed agreements with three European standard setting organisations, namely the European Card Payment Cooperation (ECPC), nexo standards and the Berlin Group, to reuse existing open technical standards for processing digital euro online payments.

The standards include:

• CPACE standards, developed by the ECPC, which support contactless “tap‑to‑pay” payments using near-field communication between payment devices and terminals;
• nexo standards, which connect merchant systems with the back-end systems of payment service providers and acquirers, supporting payment acceptance and ATM transactions; and
• Berlin Group standards, which enable payments using aliases (such as mobile phone numbers) and support balance checks and reconciliation across mobile devices and merchant applications.

Leveraging these open standards, the ECB aims to reduce adoption costs, expand geographical reach and support wider usage. Once EU co-legislators adopt the digital euro Regulation, European payment providers will be able to scale beyond national borders.

United States: PACE Act to modernise payment landscape introduced to House of Representatives

On 21 April 2026, U.S. Representatives Young Kim and Sam Liccardo introduced the Payments Access and Consumer Efficiency (PACE) Act to the House of Representatives. The legislation aims to enable faster, lower-cost payments by modernising access to payment rails, in particular by allowing qualified providers to access federal payment systems directly, thereby reducing delays and costs for consumers and small businesses.

Key provisions include:

• Streamlined federal registration: Eligible payments companies can apply for federal registration with clear standards and a 180-day review deadline for initial applications;
• Strong consumer protections: Consumer funds must be fully backed on at least a 1:1 basis, held separately from company assets, and cannot be reused or put at risk;
• Direct access to federal payment networks: Approved companies would be able to access certain Federal Reserve payment systems directly;
• Robust oversight and enforcement: The Office of the Comptroller of the Currency (OCC) supervises registered payment companies and can hold them to high standards; and
• Consumer-first insolvency protections: In the event of insolvency, consumers will be prioritised in the recovery of funds.

United Kingdom: Final Codes of Practice under Public Authorities (Fraud, Error and Recovery) (PAFER) Act 2025 published

On 14 May 2026, the government published the response to its consultation on draft Codes of Practice (CoPs) under the PAFER. The final CoPs have also been published.

Take a look at this Our Thinking article for more on the PAFER (under which banks and e-money institutions face new information and account direct deduction obligations) and the CoPs consultation. Some key changes made to the final CoPs are:

• Eligibility Verification Notices (EVNs) CoP has been amended to:
  • provide further examples of eligibility indicators which may be specified in an EVN;
  • set out a definition of the term “necessary and proportionate”;
  • provide further examples of considerations that the Secretary of State may take into account when determining whether it is necessary and proportionate to issue an EVN;
  • provide further information about how the Department for Work and Pensions (DWP) may evaluate EVNs during the Test and Learn period.
• DWP Direct Deduction (DDO) and Disqualification from Driving Orders COP has been amended to:
  • confirm credit reference agency (CRA) data, and, where appropriate, a longer period of bank statements will be used to consider affordability;
  • make clear when bank costs may be applied and how this can be avoided;
  • provide clarity on when joint accounts and joint business accounts will be considered for a DDO;
  • include further detail on expectations where penalties have been applied by the DWP;
  • confirm banks should advise the DWP if an account is unsuitable for a DDO;
  • provide further detail on actions for banks and the DWP where there are insufficient funds in an account to comply with a DDO.
• DWP Obtaining Information to Support Fraud Investigations in the Welfare System COP has been amended to (among other things) provide further clarity around the concepts of reasonable grounds, necessity and proportionality.

The Government will now begin implementing the relevant measures in the PAFER. The provisions on EVNs came into force on 2 February 2026. Now that the final EVN COP has been issued, EVNs can be given. The DWP will initially test the eligibility verification power with a small number of financial institutions - the ‘Test and Learn’ period. The measure will then be gradually rolled out with all relevant financial institutions. A similar approach will be adopted with DDOs, where the relevant provisions came into force on 1 April 2026.

United Kingdom: Latest edition of Financial Services Regulatory Initiatives Grid published

The latest edition of the Financial Services Regulatory Initiatives Grid was published on 19 May 2026, setting out an updated overview of the planned regulatory initiatives for the next 24 months. Some key points from the updated Grid in relation to payments and cryptoassets developments include:

• Modernising payments assimilated law: An HM Treasury (HMT) consultation paper on a review of assimilated payment services law, including the approach to Open Banking and stablecoin payments, is due in Q2 2026.
• Open Banking - Implementation of Joint Regulatory Oversight Committee actions: Subject to legislation, in Q3 2026 there will be an FCA consultation paper on the Open Banking Long-Term Regulatory Framework interface rules. In Q4 2026, HMT’s Data (Use and Access) Act SI is due to be laid in Parliament, which (alongside the above payments reforms) will give the FCA the necessary powers to oversee the future ecosystem, including regulating the Future Entity and commercial schemes.
• National Payments Vision implementation: The Grid highlights a consultation on the next steps on the Retail Payments Infrastructure Board’s (RPIB) work due in ‘Spring 2026’, and that the Delivery Company set up is expected in H1 2026.
• Cryptoasset Resolution Regime: An FCA consultation paper is expected in H2 2026. The purpose is to develop a resolution regime for cryptoasset custodians and stablecoin issuers.

European Union: European Commission publishes consultations on review of MiCA

On 20 May 2026, the European Commission published a targeted consultation on its review of the Regulation on markets in cryptoassets (MiCA).

The Commission is proposing to assess whether MiCA remains fit for purpose by comparing the EU framework for cryptoassets with the frameworks of other jurisdictions and with market developments. It is consulting on the following areas:

• Scope and definitions: including questions on the conditions for offering or seeking admission to trading of cryptoassets other than asset referenced tokens (ARTs) or e‑money tokens (EMTs);
• Requirements for ARTs, EMTs and their issuers: including questions on the conditions for offering or seeking admission to trading of ARTs and EMTs, their prudential regime, the multi‑issuance model of global tokens and the interaction with third-country regulatory frameworks;
• Appropriateness of MiCA for cryptoasset service providers (CASPs): covering questions on the scope of cryptoasset services regulated under MiCA.
• Topics beyond the initial scope of MiCA: covering questions relating to decentralised finance, cryptoassets staking, lending and borrowing activities, and non‑fungible tokens (NFTs). The Commission also seeks views on whether MiCA should aim to increase legal certainty of cryptoassets and other on‑chain assets, particularly in respect of natively-issued assets.

Following its simplification agenda to support EU competitiveness, the Commission also wishes to gather information to assess whether any administrative or other burdens under MiCA can be simplified, reduced or dispensed with.

The Commission has also launched a public consultation on the MiCA review.

Both consultations close on 31 August 2026.

In terms of next steps, responses to the consultation will help the Commission to compile a report on the application of MiCA and the latest developments in cryptoassets markets, which it is required to prepare under Articles 140 and 142 of the Regulation. If deemed necessary, the report may be accompanied by a new legislative proposal to amend MiCA.

United Kingdom: Government publishes draft SI exempting stablecoins for payments from scope of new crypto regime

On 21 April 2026, HM Treasury published a draft statutory instrument (SI) (the Amending SI) together with a policy note, amending the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026 (the Crypto Regulations). The Amending SI proposes to exempt certain stablecoin payments firms from the requirement to obtain authorisation for cryptoasset dealing and arranging under the new regulatory regime from October 2027.

The government plans to consult soon on bringing payment services using UK-issued stablecoins, issued by firms authorised to carry on the new regulated activity of issuing qualifying stablecoins, within the regulated payments framework as part of its broader payment services reforms announced on 21 April 2026 (see the related item in the Payments Regulatory Developments section above). Pending this further regulatory clarification, the government proposes to:

• Carve out UK qualifying stablecoin (UKQS) from the new activities of dealing in qualifying cryptoassets as principal, dealing in qualifying cryptoassets as agent and arranging deals in qualifying cryptoassets under the Crypto Regulations;
• Retain lending and borrowing activities involving UKQS within scope of the cryptoassets dealing activities, allowing the FCA to create rules to address the associated consumer risks as appropriate;
• Change the perimeter for the financial promotions regime under the Financial Promotions Order (FPO) so that transactions involving UKQS (and no other cryptoassets) will not be subject to the financial promotions regime, with the exception of lending and borrowing arrangements; and
• Bring the provisions in the crypto regime that carve out stablecoin backing assets from being either a collective investment scheme or alternative investment fund into force early – as currently drafted, 30 days after the Amending SI enters into force.

Following stakeholder feedback and in the interests of ensuring a competitive UK crypto regime, the government is also proposing two further points in the Amending SI relating to proprietary trading/market making, as well as central securities depositories.

The Amending SI and policy proposals were open for consultation until 22 May 2026. HMT will also engage directly with industry for feedback, with a broader consultation on payment services reforms expected during Q2 2026.

For more on the Amending SI, take a look at this Our Thinking article.

United Kingdom: High Court confirms only certain actions in tort are available when seeking to recover cryptoassets

Following the enactment, in December 2025, of the Property (Digital Assets etc) Act 2025 (the Act), the High Court handed down a judgment on 10 March 2026 confirming the Law Commission's conclusion, reached in the report it produced in the lead up to the Act, that the tort of conversion is not available to a claimant seeking recovery of a digital asset.

The Claimant held a substantial sum of Bitcoin in a cold wallet (a physical device unconnected to the internet), located at a UK home address, protected by a PIN and a 24-word seed phrase (a type of recovery passphrase). In August 2023, the Bitcoin was transferred without the Claimant's consent, via a number of transactions, to 71 separate addresses. The Claimant alleged that his estranged wife (the First Defendant), acting alone or with her sister (the Second Defendant), covertly recorded him on home video to obtain the seed phrase without his knowledge or permission and used it to transfer the Bitcoin.

The Claimant initially sought and obtained a proprietary injunction to prevent the Defendants from dissipating assets, advancing causes of action in the torts of conversion and trespass to goods, alongside related conspiracies.

The First Defendant subsequently applied for a strike-out and summary judgment, arguing these torts were not available to a claimant in an action by which recovery of intangible assets (in this case, Bitcoin) is sought.

In response, the Claimant amended the Particulars of Claim to add a number of alternative causes of action, including unjust enrichment, breach of confidence, misuse of private information, causing loss by unlawful means, proprietary restitution and constructive trust.

Cotter J struck out the claims in conversion and trespass to goods. The court found that while Bitcoin is undoubtedly property, not least as a result of the operation of the Act, it is nonetheless intangible, and therefore cannot be the subject of a claim in conversion under English common law. However, the court did permit the amendments to the claim to reflect the range of alternative causes of action available to victims of crypto-misappropriation which include restitution and constructive trust (see AA v Persons Unknown [2019] EWHC 3556) and deceit and unjust enrichment (see Jones v Persons Unknown [2022] EWHC 2543).

For more detailed analysis of the High Court's decision, see this Our Thinking article. 

United Kingdom: FCA publishes guidance for cryptoasset firms applying for authorisation or variation of existing permissions

On 30 April 2026, the FCA published a webpage providing guidance for cryptoasset firms applying for authorisation or seeking to vary existing permissions under the forthcoming regulatory regime. Key points flagged by the FCA include:

• Firms should develop a “clear and credible plan” demonstrating how they have considered the incoming regulatory requirements and how they will be ready to comply, including by:
  • Determining the type of authorisation required;
  • Ensuring the scope of proposed permissions aligns with the firm’s business model and risk profile;
  • Carrying out a gap analysis against expected Financial Services and Markets Act 2000 (FSMA) requirements;
  • Developing a realistic, board-approved implementation plan setting out accountability, required changes, delivery approach and timelines;
  • Assessing the resources and costs associated with preparation, authorisation and ongoing compliance; and
  • Obtaining legal, compliance or regulatory advice where appropriate.
• Firms may request a pre-application meeting with the FCA through the Pre-Application Support Service (PASS), with meetings expected to begin from July 2026.
• The authorisation gateway will open from 30 September 2026 to 28 February 2027, with the new regime commencing on 25 October 2027.
• Firms submitting applications outside this window or providing poor quality submissions risk not obtaining authorisation in time and would have to suspend cryptoasset activities.
• Firms already registered under the Money Laundering Regulations (MLRs) or authorised under FSMA will need to demonstrate how their existing business complies with the new requirements, including in relation to market conduct, customer treatment, governance and systems and controls.

United Kingdom: FCA publishes rules and guidance on progressing fund tokenisation

On 30 April 2026, the FCA published a policy statement (PS26/7) setting out rules and guidance to support the adoption of fund tokenisation, together with a roadmap for future regulatory developments. Key points covered in the policy statement include:

• Responses to the FCA’s October 2025 consultation broadly supported its approach and objective of accelerating fund tokenisation in the UK.
• The FCA has introduced guidance for operating tokenised authorised funds within the existing regulatory framework, largely as proposed, with some changes to reflect feedback, including:
  • Clarifying that units in a class may be issued on multiple blockchains where investors’ underlying rights, and the nature of charges and expenses, remain unchanged;
  • Confirming that on-chain transaction records may serve as the primary books and records for unit deals, without requiring a full off-chain “mirror”, provided appropriate resilience arrangements are in place; and
  • Not proceeding with certain proposed anti-money laundering guidance on the basis that it duplicated existing, well-understood obligations.
• The FCA will introduce an optional Direct to Fund (D2F) model to enable direct dealing in conventional and tokenised authorised funds. Following feedback, this will include permitting authorised fund managers to act as principal and removing the requirement to transfer unattributable cash into a client money account.
• The policy statement also sets out the FCA’s longer-term roadmap for digital assets, encouraging firms exploring tokenised portfolio management and composable finance to engage with the FCA and take advantage of its open-door policy, with further industry input on composability expected later in 2026.
• The final rules and guidance are set out in the appendix, in the Collective Investment Schemes Sourcebook (Use of Distributed Ledger Technology in Authorised Funds) Instrument 2026 (FCA 2026/24) and the Collective Investment Schemes Sourcebook (Direct Dealing) Instrument 2026 (FCA 2026/25), both of which came into force on 30 April 2026.

United Kingdom: FCA and Bank of England publish shared vision for tokenisation in UK wholesale markets

On 18 May 2026, the FCA and the Bank of England (BoE) set out a shared vision for tokenisation in UK wholesale markets. In response to industry requests for more certainty on regulation and infrastructure as tokenisation develops, the regulators have outlined their approach across key areas. As part of this initiative, a number of related publications have been released:

• An FCA and BoE joint Call for Input, “The future of tokenisation – A joint vision from the authorities for UK wholesale financial markets” (see the next item below);
• PRA Dear CEO letters setting out updated guidance on the prudential treatment of tokenised assets, stablecoins and other cryptoasset exposures, as well as on innovations in deposits, e-money and stablecoins (see the related item below);
• A BoE consultation on extending RTGS and CHAPS settlement hours, setting out next steps towards near 24/7 settlement, with a staged approach including weekend and extended daily operating hours (see the related item in the Payments Regulatory Developments section above); and
• A BoE announcement on the launch of a live synchronisation service for the renewed RTGS platform (RT2).

United Kingdom: FCA and Bank of England publish joint Call for Input on tokenisation in wholesale markets

On 18 May 2026, the FCA and the Bank of England (BoE) published a joint Call for Input as part of their broader initiative on tokenisation in wholesale markets (see the item above), setting out a potential framework for the long-term development of tokenisation and the transition towards it.

Key points from the Call for Input include:

• Principles and operational considerations:The regulators set out the key infrastructure, policy and regulatory principles they intend to follow, including:
  • There should be an identifiable person accountable for regulated financial services activities;
  • There should be fair, orderly and resilient trading conditions for tokenised securities;
  • The ability for issuers of securities and their holders to have a direct relationship needs to be maintained;
  • The risks of some non-natively issued tokens need to be addressed. Some tokenised assets offer their customers exposure to underlying assets, but without the consent of the issuer of the underlying asset;
  • There should be a legally accountable person responsible for maintaining a clear record of ownership and ensuring settlement finality;
  • Fragmentation of liquidity must be minimised, for example, between tokenised and non-tokenised securities, between different tokenised versions of the same security, and between UK and international infrastructure; and
  • Wholesale settlement should remain anchored in central bank money.
• Specific policy proposals
  • Prudential treatment: The regulators are aiming for equivalent prudential treatment of tokenised and non-tokenised assets, with the PRA to consult separately on banks’ cryptoasset exposures;
  • Collateral treatment: Consideration of the eligibility of tokenised assets as collateral in Sterling Monetary Framework (SMF) operations;
  • Central clearing: The BoE will continue industry engagement on the potential for tokenised collateral to be accepted by Central Counterparties, and publish a discussion paper on how they could be eligible under the UK European Market Infrastructure Directive (EMIR);
  • Settlement: Enabling digital asset ledgers to access programmable settlement in central bank money, including through a BoE synchronisation service via RTGS, targeted for delivery by 2028;
  • Tokenised central bank money: The BoE will publish an assessment in 2027, including consideration of a potential wholesale central bank digital currency;
  • Digital gilts (DIGIT): The FCA and BoE will support DIGIT, including through eligibility as collateral in SMF operations, sandbox issuance, and helping to identify options for cash settlement;
  • Custody: The FCA proposes not to apply the new crypto custody rules in CASS 17 to specified investment cryptoassets (ie traditional securities in cryptoasset form), with existing custody rules for traditional securities (CASS 6) remaining applicable.

Responses to the Call for Input are requested by 3 July 2026. The regulators describe it as providing an initial roadmap. The FCA is expected to publish a response statement over the summer, followed by a full joint roadmap for the digitalisation of wholesale markets later in 2026, building on HM Treasury’s Wholesale Financial Markets Digital Strategy and supporting the role of the newly appointed Wholesale Digital Markets Champion (see the related item in the Payments Regulatory Developments section above).

United Kingdom: PRA publishes Dear CEO letters on cryptoasset exposures and digital money innovations

On 18 May 2026, as part of the regulators’ broader initiative on tokenisation in wholesale markets (see the item above), the PRA published a Dear CEO letter to banks and designated investment firms, updating its expectations for managing the prudential risks arising from tokenised assets, stablecoins and other cryptoasset exposures.

The letter updates the PRA’s 2022 expectations and confirms that firms should continue to apply existing risk controls while adopting a more risk-sensitive and proportionate approach where appropriate. In particular:

• Firms are encouraged to take a proportionate approach based on the specific risk characteristics of each cryptoasset when applying the prudential framework;
• Firms can use the Basel Committee on Banking Supervision’s (BCBS) international standard for the prudential treatment of cryptoasset exposures;
• Tokenised traditional assets should generally receive the same prudential treatment as their non-tokenised equivalents where legal rights and risks are comparable; and
• Firms may apply this approach within the Digital Securities Sandbox, including in relation to the Digital Gilt Issuance Pilot.

The PRA notes that these expectations are interim, pending consultation on a future prudential framework, which is expected in 2028 at the earliest.

On the same day, the PRA published another Dear CEO letter to PRA-regulated firms on innovations in the use of deposits, e-money and regulated stablecoins. This letter updates the PRA’s 2023 expectations and is intended to help mitigate risks to loss of confidence arising from differences in protection between retail deposits and other forms of digital money. In particular, the PRA clarifies that:

• Banking groups issuing e-money or stablecoins should ensure those products are clearly distinguished from deposit products in naming and presentation; and
• Firms are expected to continue issuing e-money and stablecoins from a separate non-deposit-taking and insolvency-remote entity, such that stress or failure of the issuing entity does not adversely affect the wider deposit-taking group or the continuity of deposit-taking services.

Hong Kong: SFC introduces new regulatory framework for secondary trading of tokenised investment products

On 20 April 2026, the Securities and Futures Commission (SFC) of Hong Kong introduced a new regulatory framework, set out in a circular, to pilot the secondary trading of tokenised SFC-authorised investment products. The initiative aims to boost trading activity within Hong Kong’s expanding digital asset ecosystem by improving the tradability of tokenised funds and further integrating them with the Web3 environment. The framework focuses on enabling secondary trading of tokenised SFC-authorised open-ended funds on SFC-licensed virtual asset trading platforms (VATPs), broadening access for retail investors to regulated trading services. The SFC may consider over-the-counter secondary trading arrangements on a case-by-case basis. The framework also envisages 24/7 trading supported by the potential use of regulated stablecoins and tokenised deposits for settlement.

Key requirements introduced include:

• Fair pricing: VATPs should implement effective risk management and supervisory controls to ensure fair pricing of tokenised products, including price deviation alerts and reminding investors of the primary market alternative;
• Liquidity provision: Product providers should use best endeavours to appoint at least one market maker per tokenised product, subject to a minimum three-month termination notice period, and closely monitor trading activity and liquidity;
• Disclosure: Firms must provide clear and comprehensive risk disclosures covering liquidity, price deviation, price fragmentation and reliance on market makers, in offering documents and digital interfaces (including websites and applications) and get clients to acknowledge these risks prior to onboarding for secondary trading;
• Notification: Product providers must immediately notify the SFC and investors if dealing is suspended or market making is disrupted; and
• Prior consultation: Prior SFC consultation is required for new tokenisation features, material changes to the approved arrangements, and first-time secondary trading by intermediaries.

Japan: Regulators issue joint guidance on real estate transactions using cryptoassets

On 28 April 2026, Japan’s Financial Services Agency, together with the Ministry of Land, Infrastructure, Transport and Tourism, the National Police Agency, and the Ministry of Finance published joint guidance on the use of cryptoassets in real estate transactions. The guidance warns industry associations and market participants of increasing money laundering and related risks arising from the use of cryptoassets, particularly given their ability to facilitate rapid cross-border transfers.

The guidance provides that:

• Exchanging cryptoassets for fiat currency on behalf of clients may constitute a “cryptoasset exchange business”, and carrying out such activities without registration may breach the Payment Services Act;
• Real estate agents must conduct customer due diligence in cryptoasset-related transactions, file suspicious transaction reports and notify the police where criminal activity is suspected, in accordance with the Act on Prevention of Transfer of Criminal Proceeds;
• Cryptoasset exchange service providers must conduct customer due diligence and report suspicious transactions, including unusually large transactions that are inconsistent with a customer’s financial profile, under the Act on Prevention of Transfer of Criminal Proceeds; and
• Persons receiving cryptoassets exceeding JPY 30 million from overseas must submit a payment report under the Foreign Exchange and Foreign Trade Act.

Israel: Regulators approve first issuance of shekel pegged stablecoin

Israel’s Capital Market Insurance and Savings Authority (the Authority) has approved the first issuance of a stablecoin pegged to the Israeli shekel. The initial offering will be limited in scope.

Key features include:

• The stablecoin will maintain a 1:1 peg to the shekel, with reserve assets held in Israel in segregated accounts;
• The activity will be subject to strict regulatory requirements, including technology risk management, information security, business continuity and ongoing reporting; and
• The initiative complements the proposed Stablecoin Law, which is expected to be published for public consultation and aims to establish a comprehensive regulatory framework for the sector.

The Authority noted that the stablecoin is expected to support blockchain-based transfers, enable faster settlement and facilitate the development of advanced financial services, while maintaining financial stability and consumer protection. It also confirmed that it will continue to promote innovation in a cautious and controlled manner pending full regulatory implementation.

European Union: Council adopts 20th sanctions package against Russia

On 23 April 2026, the Council of the European Union (the Council) adopted the 20th package of sanctions against Russia. This significantly expands measures affecting financial services, including cryptoassets and payments:

• A transaction ban on 20 additional Russian banks, bringing the total number of Russian banks excluded from the EU internal market to 70;
• An extension of the transaction ban to four banks in Kyrgyzstan, Laos and Azerbaijan for facilitating sanctions circumvention or connecting to Russian networks;
• A total sectorial ban on exchanges with any Russian cryptoasset service provider, as well as decentralised platforms that enable crypto trading linked to sanctions circumvention;
• A prohibition on the use of, and support for, the cryptocurrency RUBx, a rouble-backed stablecoin, as well as the digital rouble currently under development by the Central Bank of Russia for potential use in sanctions circumvention; and
• A ban on transactions with agents in Russia and third countries that facilitate international transactions from Russia to circumvent EU sanctions.

Australia and New Zealand: 1Cover and Adyen partner to modernise payments

On 20 April 2026, Adyen announced a significant uplift in its collaboration with Australia's specialist travel insurer 1Cover. The partnership aims to address the persistent challenges posed by fragmented payments systems across the insurance sector. The upgraded payments infrastructure is designed to improve scalability, streamline operations, and further enhance the customer experience. By consolidating its payments stack onto Adyen's single global platform, 1Cover has streamlined operations across Australia and New Zealand. This provides access to local payment methods, automated reconciliation to reduce manual intervention, and machine-learning-driven fraud prevention, thereby improving checkout reliability while maintaining high levels of security.

Mexico: Nuvei launches direct acquiring

On 21 April 2026, Nuvei announced the launch of direct acquiring in Mexico, enabling businesses to process card transactions locally through its own licensed infrastructure. By processing transactions via direct integrations with domestic infrastructure and global card networks, Nuvei removes reliance on intermediary acquiring partners. Through a single platform, it enables businesses to improve approval rates, enhance visibility into transaction data, and reduce the complexity of managing payments across markets. 

Asia and Europe: ClearBank partners with Tazapay to strengthen Asia–Europe payments corridor

On 22 April 2026, ClearBank announced a new partnership with Singaporean payments infrastructure provider Tazapay, to strengthen payment flows between Asia and Europe. ClearBank will provide Tazapay with access to UK and European payment rails, supporting real-time settlement and compliant fiat interoperability for its clients. The integration links ClearBank's cloud-native clearing infrastructure with Tazapay's single-API global payments platform, facilitating seamless and compliant cross-border transactions. Tazapay becomes ClearBank's first Singaporean client and fifth non-resident Asian-headquartered client onboarded in 2026, reflecting growing demand for real-time clearing across the UK and Europe.

Global: Ballerine launches agentic detection to tackle early-stage merchant fraud

On 21 April 2026, it was reported that Ballerine, an AI-native merchant risk and compliance platform, launched its Scam & Fraud Detection API, a new agentic detection solution that identifies high-risk merchants and coordinated fraud networks in under 60 seconds, before transactions occur. Unlike traditional approaches that rely solely on transaction monitoring or static onboarding checks, the solution analyses a merchant's broader context, including its digital footprint, behavioural signals, ownership structures and ecosystem connections, helping to detect and stop fraudulent activity at an early stage. The launch responds to the growing automation and industrialisation of merchant-driven fraud, with AI-powered scam operations now capable of being built and scaled within days while presenting as legitimate businesses.

Namibia: Bank Windhoek pioneers WhatsApp Banking offering

On 20 April 2026, Bank Windhoek launched the first WhatsApp Banking channel in Namibia. Customers can now interact with the bank via a familiar messaging interface at any time on mobile devices, with services including balance enquiries, mini statements, selected payments and transfers, and basic account support. Security remains a key focus, with the platform incorporating multiple layers of authentication and encryption to safeguard customer information and transactions. The initiative forms part of the bank's broader strategy to build digital ecosystems centred on convenience and accessibility, reducing reliance on physical branches and addressing distance-related barriers for customers nationwide.

United Kingdom: Coinbase lists tGBP as its first GBP-backed stablecoin

On 22 April 2026, Coinbase announced the listing of tGBP, a new fiat‑backed stablecoin denominated in British pounds and issued by FCA‑registered BCP Technologies. Users in the UK and other supported regions can buy, sell, convert, send, and receive tGBP via the Coinbase app and Coinbase Exchange. The listing enables users to manage digital assets without converting between USD‑pegged stablecoins and British pounds, eliminating unnecessary foreign exchange risks. Coinbase positioned the launch as part of its broader international expansion strategy to support locally denominated stablecoins, highlighting its importance in strengthening the UK's position as a global hub for crypto innovation.

Global: DTCC advances tokenisation service in collaboration with over 50 firms

On 4 May 2026, the Depository Trust & Clearing Corporation (DTCC) announced progress and timelines for its Depository Trust Company (DTC) tokenisation service, developed in collaboration with more than 50 financial industry firms, including custodians, asset managers, brokers, and trading venues. DTCC plans to begin limited production trades of tokenised real‑world assets in July 2026, followed by a full launch in October 2026. The service will enable DTC‑custodied assets to be issued in tokenised form while preserving existing ownership rights, investor protections, and entitlements. Supported by a Securities and Exchange Commission (SEC) No‑Action Letter granted in December 2025, the service will cover selected highly liquid assets, including major U.S. equities, ETFs, and Treasury securities.

China: Alipay AI Pay launches AI-driven delegated purchasing on Taobao

On 11 May 2026, it was reported that Alipay AI Pay had launched a delegated purchasing feature on Taobao, enabling users to authorise an AI shopping assistant to complete transactions on their behalf. The capability integrates Alibaba's Qwen large language model into the Taobao app. Users instruct the assistant to find a product at a target price, triggering a one‑time delegation for that specific transaction. Following identity verification, the AI monitors prices and places the order once conditions are met. Each authorisation is limited to a single transaction, avoiding any open‑ended payment mandate. Alipay plans to extend the feature to recurring purchase scenarios, including commuting, utility payments, and repeat procurement.

Middle East: Telr launches Google Pay for its merchants

On 4 May 2026, UAE-based payment gateway provider Telr launched Google Pay for all its merchants across the region, enabling faster and more seamless payment experiences. Customers can complete transactions instantly using cards stored in their Google Wallet, and the solution incorporates advanced security features, including authentication, encryption, and tokenisation, to protect sensitive data. For merchants, Google Pay reduces friction at checkout and supports higher conversion rates. The launch complements Telr's existing integrations, which include Samsung Pay, alongside solutions such as QR payments and buy-now-pay-later (BNPL), further strengthening its all‑in‑one payments ecosystem.

Oman: MoneyHash partners with Thawani Pay to advance payment infrastructure

On 22 April 2026, MoneyHash announced a partnership with Thawani Pay, the first licensed fintech and payment solutions provider regulated by the Central Bank of Oman. MoneyHash's orchestration layer enables businesses to manage multiple payment providers, optimise transaction routing, and maintain cross‑market visibility through a single integration. Meanwhile, Thawani Pay supports a broad range of payment use cases, from everyday transactions to government services, aligned with Oman Vision 2040. The partnership supports MoneyHash's strategy to expand its presence in Oman, allowing merchants to operate more effectively within the local payments ecosystem while maintaining consistency across markets.

Indonesia and China: Central banks launch cross-border QR payments connectivity

On 7 May 2026, it was reported that, under the guidance of Bank Indonesia and the People's Bank of China, a cross-border QR payment linkage had been launched between Indonesia's QRIS system and China's leading payment ecosystems, enabled by Alipay+ and UnionPay International. Users of Alipay and the UnionPay App can pay easily at more than 40 million QRIS merchants in Indonesia, while QRIS-supported e-wallets and bank apps can scan over 80 million Alipay and UnionPay QR codes in China. The initiative requires no additional hardware for Indonesian merchants and is expected to support inbound tourism and related revenues, following 1.34 million Chinese visitors in 2025.

Ethiopia: TerraPay, COOP Bank and Quantoz Payments launch cross-border blockchain remittances

On 6 May 2026, TerraPay announced the launch of a blockchain‑based settlement system for inward remittances to Ethiopia, in partnership with Cooperative Bank of Oromia (COOP Bank) and Quantoz Payments. The initiative enables euro‑denominated remittance flows from Europe, leveraging TerraPay's global payments network, COOP Bank's domestic reach, and Quantoz Payments' regulated digital euro settlement infrastructure. As one of Africa's largest remittance‑receiving countries, with annual inflows exceeding USD 5 billion, the launch comes amid ongoing reforms to Ethiopia's foreign exchange regime and is expected to enhance the transparency and efficiency of cross‑border financial flows.

United States: Affirm partners with Google to enhance AI shopping payments

On 12 May 2026, Affirm announced a collaboration with Google to integrate its buy-now-pay-later (BNPL) payment options into AI-powered shopping experiences. The integration will make Affirm available as a payment option within Google Pay at checkout across Google Search and the Gemini app. The collaboration aims to provide consumers with clear and immediate visibility of their payment options, including instalment plans following a real-time eligibility check, without hidden fees or ambiguity. The initiative reflects the growing convergence of AI-driven commerce and transparent, consumer-centric payment solutions in the evolving digital shopping landscape.

Syria: QNB Group pioneers international card and digital payments acceptance

On 5 May 2026, QNB Group, a leading financial institution in the Middle East and Africa, announced the launch of card and digital payments acceptance in Syria, following the Central Bank of Syria's decision to modernise the country's financial sector. This milestone makes QNB the first bank to support digital payment acceptance in the Syrian market, aimed at improving efficiency, transparency and the customer experience. A phased and controlled approach will be adopted to support a sustainable rollout of acceptance services across multiple industries. QNB is expanding its card products in collaboration with international payment schemes, reinforcing its commitment to enhancing the digital payment ecosystem in Syria.