At the MoneyLIVE Summit 2026, David Geale, Executive Director of Payments and Digital Finance at the Financial Conduct Authority (FCA) and Managing Director of the Payment Systems Regulator (PSR), outlined how the UK payments regulatory landscape is evolving.
The speech highlighted several developments that payments firms, fintechs, and e-money institutions should monitor closely. Regulatory consolidation, Open Banking progress and upcoming crypto rules are clarifying the regulatory direction.
Below are key themes firms should prepare for.
A More Joined-Up Payments Regulator
A major development is the planned consolidation of the Payment Systems Regulator into the FCA.
Historically, the PSR focused on payments infrastructure and competition, while the FCA oversaw firms’ conduct and consumer protection. As the payments ecosystem has evolved, these areas have become more interconnected.
The consolidation aims to simplify regulatory engagement and offer a more coordinated perspective across the payments ecosystem.
Firms should adopt a holistic approach to regulatory risk, considering payments infrastructure, operational resilience and consumer outcomes together rather than as separate compliance issues.
Outcomes-Based Regulation Is Here to Stay
A key message from the FCA was its continued shift towards outcomes-focused regulation.
Instead of prescribing detailed rules, the regulator now expects firms to demonstrate that their frameworks deliver positive consumer outcomes. This aligns with the expectations set by Consumer Duty.
This approach reduces prescriptive rules but places greater responsibility on firms to show that their governance, risk management and compliance frameworks are effective.
Firms must move beyond tick-box compliance and clearly demonstrate how they identify, manage, and monitor risks.
Contactless Limits Are Being Removed
The FCA confirmed that the existing £100 contactless limit will be removed, allowing firms to set their own limits.
This change aims to reduce friction at the point of sale and provide consumers with more flexibility. However, it also increases firms’ responsibility to manage fraud risks effectively.
Firms may only remove the limit if strong fraud controls are in place, and consumers must continue to be reimbursed for unauthorised transactions.
As a result, firms considering higher limits may need to strengthen their fraud monitoring, transaction risk controls and customer security features.
Open Banking Is Moving into a Commercial Phase
The speech also noted that Open Banking is moving beyond infrastructure development into commercial use.
Commercial variable recurring payments (VRPs) are now underway, creating new opportunities for account-to-account payment models in subscriptions, recurring payments and e-commerce.
Governance around Open Banking has also been simplified to accelerate development, and the FCA is expected to publish its Open Finance roadmap soon.
This next phase could significantly expand data sharing across financial services, creating new opportunities for innovation but also introducing additional compliance considerations around data governance and consumer consent.
Crypto and Stablecoin Regulation Is Approaching
The UK’s regulatory framework for cryptoassets is entering its final stages.
The FCA confirmed that final crypto rules will be published this summer, with the authorisation gateway expected to open in September.
Regulators are also exploring the role of stablecoins through sandbox initiatives and collaboration with the Bank of England.
Firms considering digital asset services or payment innovations involving stablecoins can expect greater regulatory clarity in the coming year.
Growth and Innovation — But with Guardrails
A consistent theme throughout the speech was the FCA’s approach to balancing growth and consumer protection.
The regulator indicated a willingness to simplify rules and step back where markets operate safely, while maintaining strong safeguards to protect consumers and market integrity.
For payments firms, this means greater flexibility may come with greater expectations. Firms will increasingly need to demonstrate that their governance, risk management and compliance frameworks are robust enough to support innovation safely.
How Neopay Can Help
As the regulatory landscape evolves, payments firms face increasing complexity, including outcomes-based regulation, Consumer Duty expectations, and new frameworks for Open Banking, digital assets and fraud prevention.
Neopay partners with payments, fintech, and e-money firms to help them navigate these changes confidently. Our services include regulatory authorisation support, compliance framework development, independent audits, and ongoing advisory tailored to the payments industry.
We help firms build robust governance, risk, and compliance frameworks, enabling them to meet regulatory expectations while continuing to innovate and grow. To find out how we can support your business, contact our team here.
