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Last week, the fintech world descended on Amsterdam for Money 20/20 Europe - and we had boots on the ground! Our Senior Journalist, Jimmie Franklin, flew over to soak up the insights and buzz, and alongside a generous stash of stroopwafels, he also brought back with him three key takeaways you’ll want to read. Here's what had everyone talking…

AI agents

The thing that came up the most was the next chapter of AI, this being AI agents and how that can change payments. For example, agentic AI could autonomously manage entire payment workflows by initiating scheduled payments, reconciling transactions, resolving discrepancies, and adapting in real time to account changes, or even fraud. This would reduce the need for human intervention and improve efficiency, and could be helpful for consumers when carrying out payments such as for flights and accommodation. As one person�� said to me, "payments just aren't very interesting", which is a reason apparently why agentic AI may find itself being deployed by some companies. It is not hard to imagine firms such as making use of this. For me, one thing that could be an issue is compliance with the AI act but also consumer protection rules, such as the Consumer Duty in the UK. I think that regulators would be concerned over issues such as transparency and payment firms and merchants looking to innovate here need to keep these issues in mind.��

Payments sovereignty��

The other, perhaps less surprising but very prominent matter was that of payments sovereignty, something that is keeping the EU’s legislators and regulators awake at night. With the EU facing geopolitical threats it hasn’t before, this has reached the payments world and the talking points, such as a European payment solution, have intensified even more.��

There is a divide on this issue, with the market banking on private solutions, such as the European Payments Initiative and its mobile payments venture, Wero. There is also increased talk about partnerships and interoperability across different EU banks and payment solutions that already exist at national level, such as Blik in Poland and Spain’s Bizum. The news of Revolut joining EPI shows how much appeal the once written off initiative has garnered, and the market and politicians alike will now no doubt be keeping an eye on consumer engagement, which already have a base considering EPI’s acquisition of successful local initiatives like iDEAL in the Netherlands.��

There is also the digital euro, which the market has begrudgingly accepted is a reality at this point, while central banks seem adamant will solve the EU’s payments issues. It is seen as a necessity by Eurosystem banks to ensure there is an alternative to the card schemes, but they still have their work cut out persuading the banking sector and politicians alike that this is an avenue worth pursuing. How the European Central Bank strikes the balance between private sector involvement, consumer privacy, and payment fees as well, remains to be seen.��

Lack of enthusiasm for open finance��

There was very little interest in open finance progression from EU or UK people, and it seems to be that priorities are simply elsewhere. Quite a few people said to me that they wanted the EU to back away from FiDA (its open finance framework) and start again. As with the potential US desertion of regulated open banking, the EU backing away from FiDA would negatively impact some fintechs due to the lack of possible business opportunities that can be opened up through regulated frameworks, as was the case with PSD2.��

What could be helpful to these though is a consensus that the updated PSD3 will make it harder for banks to discriminate against account information service providers and payment initiation service providers due to its tougher expectations on national regulators and banks alike.

‍Where can you find 91����ԭ�� next?

‍Join us in Dublin at the (June 19th), an exciting one-day conference that explores the dynamic convergence of payments and regulatory technology. Set in the vibrant city of Dublin, this forum will bring together industry leaders, innovators, and compliance experts to share valuable insights and knowledge on the latest trends, challenges, and opportunities within the rapidly evolving payments landscape. Find out more.��