What the FCA’s latest strategy means for payments and e-money firms

The FCA’s recent speech at PIMFA’s 2025 Compliance Conference focused heavily on investment and advice sectors — but beneath the surface, its key messages carry important implications for payments and e-money firms too.

The regulator outlined four strategic priorities for the next five years:

1. Supporting growth through innovation and competitiveness.
2. Becoming a smarter, more proportionate regulator.
3. Helping consumers navigate financial services and achieve good outcomes.
4. Fighting financial crime.

While the examples were largely drawn from the investment space, the themes behind these priorities reflect the FCA’s direction across all regulated sectors — including payments and e-money.

1. The FCA wants to be a smarter regulator

The FCA reaffirmed its commitment to being predictable, purposeful and proportionate — reducing unnecessary burdens while improving regulatory outcomes.

Part of this includes cutting down on duplicated and outdated reporting requirements. The FCA’s recent consultations on decommissioning certain returns could benefit over 16,000 firms, including many in payments and e-money.

However, the shift toward being a “smarter” regulator also means a greater focus on data-led supervision. Firms can expect the FCA to rely more on technology, analytics, and real-time information to monitor compliance.

What this means for firms:
Now is the time to ensure your compliance data is accurate, structured, and usable. Payments and e-money firms should review how they collect, store, and report data, as strong data governance will be central to effective compliance under this evolving approach.

2. Financial crime: a wider definition

The FCA also discussed financial crime extensively, but with a wider perspective. Besides traditional AML and fraud risks, the regulator is increasingly worried about illegal online content — including deepfake scams and unauthorised “finfluencers” promoting financial services on social media.

The FCA has asked regulated firms to report such content when they see it, especially if scammers are impersonating their brand or authorised status.

What this means for payments and e-money firms:

• Scams targeting payments and digital money services continue to rise.
• Firms should extend their existing financial crime frameworks to include processes for identifying, escalating, and reporting online threats.
• Internal coordination between compliance, risk, and communications teams will become increasingly important in protecting customers and brand integrity.

By taking a proactive stance, firms not only protect consumers but also demonstrate their role as an effective line of defence in the fight against financial crime — something the FCA clearly values.

3. Consumer Duty remains front and centre

Although much of the speech referred to the investment sector, the FCA was clear that all regulated firms should continue to challenge themselves under the Consumer Duty.

The core message remains unchanged: firms must deliver good outcomes by providing fair value, clear communication, and effective support to customers — particularly those in vulnerable situations.

For payments and e-money firms, that means looking beyond product design to how customers actually experience your services.

Practical considerations include:

• Reviewing fees and charges to ensure fair value.
• Ensuring terms and conditions and product information are genuinely clear and accessible.
• Providing support and flexibility for customers facing financial difficulty or vulnerability.
• Embedding Consumer Duty principles into staff training and internal culture.

At Neopay, we often see that training and engagement make the biggest difference — when teams understand the “why” behind compliance, good outcomes follow naturally.

4. Supporting growth and innovation

Perhaps the most encouraging takeaway from the FCA’s speech is its focus on growth and innovation. The regulator explicitly positioned itself as a champion of the UK’s financial services sector, recognising the importance of innovation in driving competitiveness and supporting the wider economy.

Through initiatives like the Regulatory Sandbox and AI Lab, the FCA aims to work more closely with firms developing new technologies and business models.

For payments and e-money firms, this is a clear signal: the FCA is open to collaboration and early engagement.

At Neopay, we’ve seen first-hand how engaging with the FCA early in the process — backed by clear documentation and a strong compliance framework — can accelerate authorisations and innovation safely.

Looking ahead

While the FCA’s latest speech was primarily aimed at investment and advice firms, its underlying messages resonate across the financial services industry.

For payments and e-money firms, the key takeaways are clear:

• Expect more proportionate but data-driven supervision.
• Keep Consumer Duty at the heart of your operations.
• Strengthen your approach to financial crime and online risks.
• Embrace innovation through collaboration and regulatory engagement.

At Neopay, we help companies meet current compliance standards and prepare for upcoming regulatory changes. Whether you’re updating your frameworks, training your teams, or planning your next growth phase, our team can support you in staying ahead.