The payments regulation roadmap: Q2 2025
April 14, 2025
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Your quarterly overview of the key regulatory changes impacting payments—what’s happening, what’s coming, and what actions to take
September 29, 2024
by Payments Intelligence
What is this article about?
The challenges and priorities facing merchants in the evolving payments landscape over the next 12 months.
Why is it important?
It highlights key trends, such as open banking, tokenisation, and fraud prevention, which are crucial for merchants to remain competitive and secure.
What’s next?
Merchants need to continue adapting to new payment methods, collaborate with industry peers, and stay agile in balancing innovation and regulatory compliance.
As the payments ecosystem continues to evolve with innovations like open banking, instant payments, and tokenisation, merchants are facing a host of challenges and opportunities. On September 19, Payments Intelligence hosted an insightful payments labs roundtable session with key players in the merchant space to discuss their strategies and priorities for the year ahead.
The discussion covered a wide range of topics, from the increasing diversification of payment methods to fraud prevention and regulatory concerns. The participants also examined the role of collaboration in overcoming shared challenges, all while adapting to changing consumer expectations.
The roundtable began with an exploration of emerging payment trends set to shape the industry. Sophie Chandler highlighted how the adoption of alternative payment methods is gaining momentum. “We’ve seen a shift from direct card payments to wallets like Apple Pay and PayPal, especially in markets like Germany and the UK,” Chandler explained. She noted that Holiday Extras had recently introduced Apple Pay and is working on a PayPal integration to accommodate customer preferences for frictionless, secure payment options.
Paul Fletcher from The Co-operative Group added that customer preferences for quick and easy payments are driving innovation in the e-commerce and grocery space. “We’ve recently implemented click to pay, a solution that allows one-click payments using network tokenisation, ensuring security while enhancing the customer experience,” he explained. This move reflects the growing need for merchants to offer a variety of payment methods, especially in high-frequency transaction environments like grocery retail.
Olga Gunchenkova echoed these trends, noting that open banking and instant payments are gaining traction across Europe, particularly in markets like the UK, Germany, and Sweden. “Open banking allows us to streamline deposits and withdrawals, making the customer journey faster and more seamless,” she said. With over 10% of withdrawals at Flutter International now occurring through open banking, the shift from traditional card payments is “undeniable”.
Fraud prevention was a key concern raised by all participants. Fletcher pointed out that although fraud isn’t as prominent in the Co-op’s grocery and funeral care services, the integration of new payment technologies, such as tokenisation, is crucial to maintaining security. “Click to pay uses network tokens, which ensures customer card details are not exposed during transactions. This significantly reduces the risk of fraud,” Fletcher stated. These network tokens replace sensitive card information with a secure, randomly generated identifier, making it nearly impossible for fraudsters to gain access to the original card details, thus enhancing the overall security of each transaction.
Gunchenkova added that instant payments through open banking are also helping to reduce fraud, particularly in high-volume industries like gaming. “With faster payments and open banking, we can reduce the time and complexity of transactions, making it harder for fraudsters to exploit vulnerabilities in the system,” she explained. However, despite the advantages of instant payments, merchants still face challenges around securing these transactions, especially with the increasing sophistication of fraudsters who are quick to adapt to new technologies. The need for continual updates to fraud detection algorithms and stronger customer authentication methods remains critical.
Merchants face new challenges as payment innovations like open banking and tokenisation reshape the industry. Join The Payments Association to read the full article.
Your quarterly overview of the key regulatory changes impacting payments—what’s happening, what’s coming, and what actions to take
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