KYC is evolving beyond onboarding. As fraud grows more sophisticated, payments firms are shifting towards continuous, risk-based identity verification.

For SMEs, cash remains essential for resilience, liquidity, and inclusivity as digital payments still bring costs, delays, and dependency risks.

Digital wallets, open banking, and instant payments are reshaping competition as banks fight to retain customer ownership and engagement.

Cross-border payments remain costly and unpredictable for SMEs, despite advances in payment technology and real-time infrastructure.

Fraud is not just financial loss but a confidence shock, driving lasting behavioural change, eroding trust, and quietly slowing digital finance adoption.

Ahead of 7 May 2026, payments firms face a shift from deadline compliance to sustained FCA scrutiny, with data-driven supervision set to reshape outcomes.