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Government outlines payments modernisation package

Government outlines payments modernisation package

Ministers have set out reforms to update Britain’s payments system. The package targets digital assets, tokenised payments, open banking, and regulatory oversight, while Napier AI says accountability for suspicious activity and transaction monitoring must keep pace with autonomous systems.

The UK government has announced a package of measures aimed at modernising the payments sector, setting out plans to update regulation and infrastructure in step with changes across financial services. The announcement was made during London Fintech Week and covers technologies including digital assets, tokenised payments, and data-driven systems.

The package includes proposals to place newer payment methods within a clearer and more proportionate regulatory framework, expand the role of open banking, and give regulators enhanced powers to support innovation while maintaining financial stability and consumer protection. The government said the measures form part of its wider ambition to maintain the UK’s position as a global fintech leader.

Napier AI, the financial crime compliance software company, welcomed the announcement while pointing to governance and oversight requirements around AI-led payments activity. Dr Janet Bastiman, Chief Data Scientist at Napier AI, said: “Championing UK fintech with a new modernisation package for the payments sector is an important step as we strive to be a leading global finance hub. Especially during a period of rapid innovation and adoption for AI agents, it’s vital that the government, regulators and industry understand both the potential and risks, acting to put frameworks in place to control its impact on the sector.”

Bastiman added: “Integrating payment services and electronic money with the UK’s core regulatory approach is positive and must move in parallel with evolving financial crime risks. When autonomous systems are conducting transactions on behalf of consumers and businesses, there must be clearly defined accountability for suspicious activity reporting and transaction monitoring.”

Napier AI also cited its latest AI / AML Index, which it said estimates that money laundering costs the UK $195 billion annually. Economic Secretary to the Treasury Lucy Rigby said: “Fintech is true British success story, and we are backing the industry to maintain its competitive edge and go even further and faster in driving growth.”

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BQ

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