Revolut is set to roll out its own AI-powered financial assistant in the near future, according to one of the fintech firm’s top executives. The company is still testing the technology, but it “will go live shortly,” said Francesca Carlesi, Revolut’s UK Chief Executive Officer, during an interview with Francine Lacqua at a Bloomberg New Voices event in Milan. The company has identified increased AI adoption to assist users with their finances as a key strategic goal for 2025. Carlesi added that intense competition is reshaping the fintech landscape and pushing convergence between digital upstarts and traditional banking giants. Francesca Carlesi “Fintech is not any more about new small startups starting to attempt to do something. Right now, we have big fintech, we have scale-ups. They are operating peer-to-peer and the same level with big incumbents,” she said. Revolut has grown rapidly, reaching 52.5 million customers in 2023, surpassing HSBC Holdings Plc, and boosting its annual revenue by 72% to £3.1 billion (US$4 billion), while also growing its profits. As part of its ongoing growth, the company plans to scale its banking operations in the UK and aims to have 200 bank staff in place by year-end. Carlesi noted in an earlier interview with Bloomberg News that Revolut is moving closer to becoming a fully licensed bank in its home market. Carlesi also commented on the regulatory divergence between the UK and Europe in the wake of Brexit. “Which I don’t think is healthy and it would be good to maintain some kind of convergence,” she said. She explained that it is no longer possible to “copy and paste” UK strategies into European markets, particularly when it comes to stablecoins, crypto, and fraud regulation. Last month, Revolut revealed plans to invest €1 billion in France as it seeks a local banking licence, establishing its Western European headquarters in Paris and committing to hire at least 200 staff over the next three years. Meanwhile, the firm continues to push for global expansion with ten banking licence applications currently in progress, while retaining its global headquarters in London.   Featured image credit: Edited by Fintech News Switzerland, based on image by altumcode via Unsplash The post Revolut to Launch AI Financial Assistant as Global Expansion Accelerates appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

While the digital euro project presented by the European Central Bank (ECB) offers several potential benefits, including improved payment efficiency, greater financial inclusion, and increased resilience of the financial system, it also introduces significant challenges for banks, including major financial, resource, and operational hurdles. A new study by global consultancy PwC examines the change costs associated with the issuance and distribution of the digital euro, as well as the technology required to process digital euro payments. This includes automated teller machines (ATMs), point-of-sale (POS) terminals, and e-commerce infrastructure. The study, which surveyed 19 banks and banking groups in H2 2024, reveals that, on average, each of these banks would need to spend about EUR 110 million to implement the necessary changes, excluding costs related to offline functionalities, multiple accounts, and merchant acquiring. Collectively, the banks in the study would need to spend over EUR 2 billion in total costs. If these figures are applied to the entire eurozone, the total estimated expenditure could amount to approximately EUR 18 billion. Total change costs could rise up to as much as EUR 30 billion in a more expansive scenario. Extrapolation of introduction costs to the euro area, Source: PwC estimate, Jun 2025 According to the study, main cost drivers relate to technical adjustments, including intermediary applications, interfaces, and ATM infrastructure, accounting for around 75% of the estimated total costs of participating banks, or more than EUR 1.5 billion. The commercial layer, comprising basic marketing activities as well as customer relationships, is expected to represent about 16% of the estimated total costs of participating banks. Finally, the operational layer, comprising core back-office processes, such as fee calculation, reporting, and payment statistics, to support the seamless integration of the digital euro, is projected to make up 9% of the estimated total costs of participating banks. Average costs per service bundle, Source: PwC estimate, Jun 2025 On top of the estimated change costs, the introduction of the digital euro will require significant deployment of personnel from across various areas of expertise. On average, respondents expect that almost 46% of the resources with relevant skills would be tied up per year, with some banks assume even higher capacities. These findings suggest that banks face big financial, resource, and operational issues with the digital euro, which could limit their ability to innovate, especially over the long-term when running costs come into play, PwC says. To ensure long-term viability, and considering the broad impact of the digital euro, the total cost must be significantly reduced. This can be done by leveraging existing infrastructure and following industry standards, helping enhance efficiency while avoiding conflicts with private-sector initiatives. A thorough cost-benefit analysis is essential for design development and targeted implementation. Also, banks should be fairly compensated to help offset investment burdens and maintain competitiveness in innovation by the European banking sector, the firm says. The digital euro The digital euro is a project launched by the ECB in 2021 to explore the potential introduction of a central bank digital currency (CBDC). This CBDC would serve as a fast and secure electronic payment instrument, complementing existing euro cash and bank account deposits. It would be issued by the European System of Central Banks of the Eurozone. The digital euro would be designed to benefit consumers, merchants, and payment service providers, offering high privacy, ensuring fair fees, and supporting the European payments landscape in an increasingly digital economy. It would be free of charge, accepted across the whole euro area, and available via a digital wallet set up through banks or with a public intermediary, such as a post office. Once set up, users would be able to load funds into their wallet from a bank account or by depositing cash and make secure, instant payments in stores, online, or directly to other individuals. Users would then get to hold digital euros up to a certain limit, with options to transfer excess funds to their bank account either manually or automatically. A cap on holdings would help prevent excessive outflows of deposits from banks, preserving financial stability. How the digital euro would work, Source: European Central Bank, May 2025 The digital euro is currently in its preparation phase, which started in November 2023. This phase focuses on further preparing for a potential development of the digital euro. The ECB published in December 2024 its second progress report on the preparation phase, outlining key developments, including updates to the digital euro rulebook, and the selection process for potential technology providers that could develop the platform and infrastructure. Ongoing research is being conducted to understand user preferences, particularly among small merchants and vulnerable groups, with results expected in mid-2025. In parallel, the ECB is working with experts from the national central banks of the Eurosystem and national competent authorities to develop a methodology for setting digital euro holding limits, balancing user experience with monetary policy and financial stability implications. The ECB’s Governing Council will decide on the possible issuance of a digital euro once the relevant legislation has been adopted. Expected timeline of the digital euro, Source: PwC, Jun 2025 CBDC efforts have accelerated over the past years. A 2023 survey of 86 central banks conducted by the Bank for International Settlements (BIS) found that 94% of the respondents were exploring a CBDC, with most working on both retail and wholesale CBDCs. More than half of the respondents (54%) were experimenting with proofs of concept while one out of three (31%) were running a pilot. Central bank involvement in CBDC work advances further, Source: Bank for International Settlements, Jun 2024   Featured image: Edited by Fintech News Switzerland, based on image by farknot via Freepik The post Digital Euro Rollout Could Cost Eurozone Banks Up to 30 Billion Euro appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Spuerkeess, BGL BNP Paribas, Banque Internationale à Luxembourg (BIL), Post Luxembourg, and Banque Raiffeisen have joined forces with the European Payments Initiative (EPI) to introduce Wero, an instant payment solution set to replace Payconiq in Luxembourg by 2026. According to Paperjam, the five banks have formalised their participation in EPI, with the goal of launching the Wero service for customers by June 2026. Already operational in Germany, France, and Belgium, Wero is gaining momentum as a European-wide, account-to-account (A2A) alternative to foreign payment providers like Visa and Mastercard. Payments will be processed directly between accounts without relying on international intermediaries. Designed to be instant, secure, simple, and above all sovereign, Wero aims to serve Europe’s unique financial landscape. In Luxembourg, where nearly half of the workforce commutes from neighbouring countries, the solution’s interoperability will allow residents to send and receive money instantly, pay online and in-store, and manage bills from a single app across borders. Luxhub, the fintech acting as a technical service provider, is supporting the transition to ensure smooth integration. Martina Weimert “Thanks to Payconiq’s local reach and trust from merchants, I’m confident that the roll-out of Wero will be seamless and impactful to bring our promise to reality,” said EPI CEO Martina Weimert. Wero will begin its rollout to Luxembourg retailers in 2025, with a full transition from Payconiq expected by September 2026. The interim period will enable businesses to adapt and gradually shift their payment systems. Wero is expanding to include additional features such as online payments (by late 2025), and in-store transactions, subscription management, and loyalty services starting in 2026.   Featured image credit: Edited by Fintech News Switzerland, based on image by Cedric Letsch via Unsplash The post Luxembourg Banks Unite to Roll Out Wero, Replacing Payconiq by 2026 appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Wollette, a UK-based technology company specialising in commerce and payments, has announced WollettePay, an account-to-account (A2A) payment system set to launch in the fourth quarter of 2025. The service is designed to combine the convenience of one-tap checkout with the underlying infrastructure of open banking, aiming to deliver seamless, instant payments without relying on cards. Current open banking payment options often involve several steps and inconsistent performance. WollettePay seeks to address these issues by enabling direct transactions between bank accounts using biometric verification, tokenisation, and encryption. Henry Orunkoya “We believe the future of payments is instant, intelligent, and effortless, and our mission is to remove friction from every transaction,” said Henry Orunkoya, Founder and CEO of Wollette. “WollettePay is the first solution to bring open banking up to speed with the card networks. We are giving consumers and merchants a payment experience that is finally as simple as it should be.” The system allows consumers to make payments without entering card details or being redirected, while offering merchants reduced costs and lower fraud risk. It is designed to work across channels, both online and in person, and includes pre-built APIs and SDKs for integration with enterprise, retail, and growing platforms. WollettePay will be available in the UK from Q4 2025 and is expected to expand to the rest of Europe in Q1 2026. Pre-registration opens in July.   Featured image credit: Edited by Fintech News Switzerland, based on image by Frolopiaton Palm via Freepik The post UK’s Wollette Unveils WollettePay for Direct A2A Payments appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

London-based Starling Bank has introduced a new feature that allows customers to use AI to better understand their spending habits. The tool, called ‘Spending Intelligence’, enables users to ask questions such as “How much did I spend on groceries last week?” or “How much did I donate to charity last year?”, and receive immediate analysis. This marks the first time a UK bank has integrated AI and natural language processing within its app to let customers interact directly with their financial data. According to Starling Bank’s Chief Information Officer Harriet Rees, Harriet Rees “At Starling we believe that knowledge is power, and it’s the first step to taking active control of your money. Now, customers can use AI to feed their natural curiosity about their finances so that they can make informed decisions about their budgeting.” Spending Intelligence builds on the bank’s existing Spending tab, which categorises transactions into over 50 customisable groups, such as ‘Bills’, ‘Transport’, ‘Groceries’, ‘Holidays’, and ‘Weddings’. The AI tool appears at the top of this tab, where users can type or speak their questions. The app also provides suggested prompts based on individual spending patterns. Once a question is submitted, the app returns a graph and related analysis to give users a clearer overview of their spending behaviour over time. Prompts might include holiday spending for frequent travellers, transport costs for commuters, or restaurant spending for regular diners. Rees added, “We’ve designed this feature so that people can engage with their finances in a way that feels natural to them. The more you talk or type, the more you’ll learn about your money management.” The feature is powered by Google’s Gemini models via Google Cloud. It interprets natural language queries before Starling’s internal systems analyse the user’s transactional data. Customers must opt in to use the feature, and can opt out at any time. All data remains within Starling’s secure Google Cloud environment and is not used to train AI models. The new tool follows other AI-driven developments by Starling, including applications in cybersecurity, fraud detection, and customer support.   Featured image credit: Edited by Fintech News Switzerland, based on image by Who is Danny via Freepik The post Starling Bank Launches AI Tool for Personal Spending Insights appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

G42, a UAE-based AI and advanced technology group, has announced the establishment of G42 Europe & UK, a new subsidiary headquartered in London. The entity aims to provide AI solutions tailored to the private sector in the UK and Europe, while working with public and industry stakeholders to help build critical AI infrastructure across the region. G42 Europe & UK will be jointly chaired by Omar Mir and Marty Edelman, both of whom bring substantial experience to the role. Omar Mir, International Board Member at World Wide Technology, has more than two decades of experience in the global technology sector. He has led initiatives across the UK, Europe, the United States, and the Middle East, with a focus on areas including 5G, edge computing, cloud, and AI services. Marty Edelman, who serves as Group General Counsel at G42, is responsible for overseeing the Group’s legal and compliance frameworks. He has played a key role in shaping the company’s governance as it expands into new markets. Omar Mir “I am honoured to co-chair G42 Europe & UK at this pivotal moment,” said Mir. “Our goal is to harness G42’s proven AI expertise and localise it for European and UK businesses, fuelling digital transformation, enhancing competitiveness, and building resilient, sovereign AI infrastructure in partnership with public and private stakeholders.” The launch follows G42’s recent expansion efforts in Europe, including plans for data centres and compute clusters in France and Italy, alongside growing interest from other countries across the region. G42 Europe & UK will utilise the Group’s global AI infrastructure, including supercomputing facilities and data centres, to deliver a range of services. These include strategic advisory, model development, infrastructure deployment, and managed services for sectors such as finance, healthcare, manufacturing, and energy. The subsidiary will also work with regional authorities to support data sovereignty efforts and the development of next-generation AI systems.   Featured image credit: Edited by Fintech News Switzerland, based on image by vwalakte via Freepik The post G42 Establishes Europe and UK Subsidiary to Expand AI Operations appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

In Europe, consumers prefer a single app that meets all their financial needs. However, they must often rely on multiple financial apps due to feature gaps, reliability concerns, and poor customer services, according to a new research by Decta, a provider of comprehensive, in-house payment infrastructure solutions from the UK. Conducted in April and May 2025, the research combines quantitative survey data from 1,539 respondents across the UK and the European Union (EU) with qualitative analysis of over 50,000 user reviews from the top five digital banking apps by user base, namely Revolut, N26, Wise, Monzo, and Monese. Missing features drive multi-app usage The study found that missing features are a primary catalyst for adopting an extra financial app, with 59.6% of respondents citing feature gaps as their primary motivations for using more than one app. This indicates that despite efforts to create all-in-one fintech super-apps, critical functionalities remain absent, prompting users to seek out complementary solutions. Next to feature gaps, the study found that almost as many respondents (57.9%) said they use other financial apps because of better rewards or cashback, highlighting the growing importance of incentives in attracting and retaining customers. Other reasons cited for using extra financial apps include better fees or exchange rates (36.3%), task segmentation (24.6%), trust and reliability concerns (17%), and a desire to try new apps or features (6%). Motivations for using multiple finance apps, Source: Wallet Fatigue 2025 Study, Decta, Jun 2025 Reliability and support concerns An analysis of app reviews revealed that frustration with day-to-day reliability and support is another key driver pushing consumers to keep a back-up finance app. Across the five UK and EU digital banks studied, 39 % of all negative reviews cited poor or unresponsive customer support, unexpected account freezes, or lengthy verification hurdles. This share is remarkably consistent from app to app, underscoring that every provider generates a steady trickle of “support horror stories.” Because of this, many users keep a secondary app in case one gets locks up or support goes silent, ensuring that funds and day-to-day payments can still flow through an alternative. Budgeting as the most notable missing feature Results from the survey revealed that budgeting and spending analysis features are the most commonly missing features, cited by over half (52%) of respondents. That’s more than any other feature shortfall and indicates that budgeting features are either missing from the top fintech apps, or their functionalities are so limited that customers must install a dedicated app known for better budgeting features as their secondary tool. Better integration with other financial apps were the second most cited motivation for using multiple finance apps (51.5%). This suggests that integration and interoperability have become critically important for customers. For customers interoperability means a more convenient and unified experience that delivers greater clarity, control and confidence in managing money. Key feature prompting a second app, Source: Wallet Fatigue 2025 Study, Decta, Jun 2025 A forced necessity Findings from the study also revealed that most customers maintain multiple apps out of necessity rather than preference. An overwhelming majority of respondents (91%) said they would gladly consolidate everything into one app if it met all their needs. Only ~2% said they probably would not drop the extras. This indicates that consumers are reluctantly keeping multiple financial apps, favoring the super-app model for its convenience, simplicity, and superior user experience. Users who would drop the rest if their main app had all the features, Source: Wallet Fatigue 2025 Study, Decta, Jun 2025 Neobanks become all-in-one finance platforms Digital banks and fintech players have recognized these changing customer preferences, and are now progressively evolving into comprehensive financial ecosystems. Revolut, for example, launched in 2015 with a smartphone app linked to a pre-paid Mastercard, focusing on low-cost foreign exchange spending. The company has since expanded into cryptocurrency trading, stock investing, savings, insurance, business accounts, mortgages, and more. Now serving over 45 million customers from more than 40 countries, Revolut is one of Europe’s most valuable and profitable fintech unicorns, achieving in 2023 its third consecutive year of profitability with a 19% net profit margin. Wise, another leading neobanking player from Europe, began in 2011 with an affordable international money transfer business. The company now operates three core services targeting individual customers, businesses, and corporate. Wise Account is a free multi-currency account that lets users hold, send, receive, and spend in more than 40 currencies with local bank details. It includes a physical and virtual debit card, real‑time exchange at the mid‑market rate, fully transparent fees, and a 48‑hour rate guarantee. Wise Business is tailored for freelancers and small businesses, offering similar multi-currency account functionality plus tools like mass payouts, invoice management, multiple debit cards with spending limits, and application programming interface (API) access for automating payments. Finally, Wise Platform is a business-to-business (B2B) API infrastructure enabling banks and fintech startups to embed Wise’s global payment network to power cross-border transfers, multi-currency wallets, and debit cards within other platforms. This network covers more than 160 countries, 40 currencies, and over 70 licenses worldwide, and is used by leading organizations globally including Morgan Stanley, Nubank, Monzo, Google Pay, and Standard Chartered. Like Revolut, Wise, is among the most valuable neobanks in the world, with a market capitalization of about US$15 billion. In fiscal year 2025, the company processed approximately GBP 145.2 billion in cross-border transactions, up 22.5% year-over-year (YoY), and claimed around 15.6 million individual and business customers.   Featured image: Edited by Fintech News Switzerland, based on images bythanyakij-12 and fabrikasimf via Freepik The post European Consumers Favor All-in-One Financial App Format, But Missing Features Drive Multi-App Usage appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Two of the world’s largest cryptocurrency firms are on the verge of securing licenses to operate across the European Union, as tensions rise among regulators over the pace and stringency of certain countries’ approval processes, according to sources familiar with the matter. Under the EU’s new Markets in Crypto-Assets (MiCA) regulation, which came into effect earlier this year, member states are authorised to issue licenses that permit crypto firms to operate across the 27-nation bloc. However, “some have raised concerns in closed-door meetings about the speed with which licenses are being granted,” Reuters reported, citing two people familiar with those discussions who requested anonymity due to the sensitivity of the issue. At the heart of the matter lies oversight of the multi-trillion-dollar crypto industry, which regulators have long warned could foster fraud, financial instability and illicit flows if left unchecked. MiCA seeks to bring the sector under a unified regulatory framework akin to traditional finance, but some fear that inconsistent enforcement could undermine its objectives. Gemini, a cryptocurrency trading platform founded by billionaire twins Tyler and Cameron Winklevoss, is reportedly close to obtaining a license from Malta, the EU’s smallest member state, according to two sources. This follows earlier approvals issued by Malta to OKX and Crypto.com, just weeks after MiCA’s implementation. Malta’s rapid approvals have attracted scrutiny from other national regulators who convene under the European Securities and Markets Authority (ESMA). France’s AMF has publicly cautioned that ESMA’s lack of direct authority could trigger a “regulatory race to the bottom”. A senior regulatory official, speaking on condition of anonymity, expressed concern about relying on licenses from countries with limited regulatory staff, pointing specifically to Malta. ESMA has reviewed Malta’s licensing procedures, and a report is expected to circulate shortly, according to one source. In response, a spokesperson for the Malta Financial Services Authority stated that it had issued four crypto licenses to date and attributed its swift processing to its “in-depth understanding acquired over these years”. The authority also maintained that its anti-money laundering standards were stringent. ESMA declined to comment. OKX said its application process had been “rigorous” and emphasised that compliance remained a top priority. The regulatory debate has intensified with expectations that Luxembourg will soon grant a license to Coinbase, opens new tab, the first US crypto-focused company to join the S&P 500, one of the people said. While the application has been in progress for several months, one person pointed to the relatively modest size of Coinbase’s planned operation in Luxembourg. A Coinbase spokesperson did not comment on its application but said it employed 200 in Europe and that it invested in staff to ensure operations were safe. The spokesperson said Luxembourg was a “high-bar, well respected global financial centre” and that Coinbase would hire more than 20 people there by the end of the year.   Featured image credit: Edited by Fintech News Switzerland, based on image by kanawatTH via Freepik The post Crypto Giants to Gain EU Access as Regulator Tensions Rise appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Agentic artificial intelligence (AI) presents exciting opportunities in the financial services industry, with the potential of transforming customer experiences, and delivering significant business value. However, the technology also introduces significant challenges, including goal misalignment, misuse of tools and application programming interfaces (APIs), and data privacy concerns, according to a new report by IBM. Agentic AI refers to AI systems that exhibit a degree of autonomy and goal-directed behavior. These systems function as agents capable of making decisions, taking actions, and pursuing objectives over time with minimal human intervention. They are able to solve complex problems, interpret and create actionable plans, and execute these plans using a suite of tools. According to IBM, agentic AI holds transformative potential in the financial services industry, promising automation, personalization and streamlined operations across complex business processes including customer onboarding, know-your-customer (KYC) and anti-money laundering (AML), fraud detection, and risk assessment. Illustration: the potential of agentic AI in financial services, Source: Agentic AI in Financial Services: Opportunities, Risks, and Responsible Implementation, IBM, 2025 Customer engagement and personalization The report present customer engagement and personalization as key areas of agentic AI implementation. Applications include hyper-personalization of product and service offerings, dynamic pricing, as well as tailored recommendation and robo-advice. The report shares one example of agentic AI implementation in customer onboarding and KYC workflows.  In this process, a customer would by submitting an account application along with the necessary documents. A customer service representative would manage this interaction, assisted by the agentic system. At the core of this agentic system, a principal agent would oversee the entire process, using an orchestration framework to determine capabilities and access. This principal agent would delegate tasks to domain-specific service agents, such as a risk analysis agent or a sanctions screening agent. These service agents would then coordinate with task agents responsible for actions like document validation and ensuring AML/KYC compliance. If a case is high-risk or requires further verification, the agents would trigger human intervention. Finally, the customer service representative would review and confirm the outcome to ensure accuracy and regulatory compliance. Operational excellence and governance The second use case outlined by IBM involves optimizing middle/back-office operations. In this area, agentic AI promises reduced risk, enhanced compliance, and streamlined workflows and administrative overhead, as well as enhanced business outcomes. Emerging applications in this area include lending and loan approvals, account operations, anomaly detection, automated risk management and compliance, and business support operations. Several organizations have already started integrating agentic AI in this domain. PwC, for example, has introduced AI agents capable of automating complex tax tasks such as handling K-1 forms, which report income from investments, Dom Megna, PwC’s US AI Tax Leader, told CFO.com in a recent interview. These forms often arrive in messy formats with unclear information, so humans typically need to interpret and map them manually. Now, AI agents are trained to understand these documents, decide how to classify items like deductible expenses, and suggest actions with a confidence level, he explained. In Germany, private bank Metzler recently partnered with Swiss software startup Unique. Unique provides an AI platform enabling financial institutions to deploy agentic AI into their back and middle-office functions through 25 off-the-shelf use cases. The startup, which serves the likes of Pictet, UBP, SIX, LGT, and Partners Group, secured a US$30 million Series A round in February to fuel its growth and global expansion plans, particularly into the US. Technology and software development The third application of agentic AI outlined in the IBM report is technology and software development, an area where these systems have the potential to significantly enhance operations, software development lifecycles, and infrastructure management. Internal experiments at Infosys, an Indian multinational technology company, revealed that AI agents can achieve between 80% and 90% improvement in database code generation; between 60% and 70% improvement in generating application programming interfaces (APIs) and microservices; and up to 60% improvement in generating user interface code. New risks and challenges Despite its benefits, agentic AI presents unique risks that require careful oversight. These systems are inherently complex, making their behavior difficult to predict and manage, and require careful consideration and tailored risk management strategies. Key risks outlined in the report include goal misalignment, where systems may pursue objectives that conflict with an organization’s true intentions or ethical standards. There are also concerns around safety, accountability, and regulatory compliance since agentic AI systems are able to act without constant human oversight. Furthermore, since agentic AI combine tools and APIs in creative, unexpected ways, they may create vulnerability issues or cause operational failures. These agents might also gradually overstep their assigned responsibilities and begin making decisions or taking actions that should require human approval. Finally, by autonomously accessing, processing, and retaining sensitive data across systems, agentic AI comes with heightened privacy risks. This includes the risk of unintentionally leaking personal or confidential information, especially if the system uses persistent memory or integrates with tools in ways that bypass standard data protections. Adoption of agentic AI on the rise Though adoption of agentic AI remains in its early stages, momentum is building. A recent industry survey by Wolters Kluwer, a Dutch information services firm, found that 38% of finance leaders plan to adopt the technology in the next 12 months. By 2026, adoption is projected to reach 44%, representing a more than 600% increase. Currently, only 6% of finance leaders are employing agentic AI.   Featured image: Edited by Fintech News Switzerland, based on image by sodawhiskey via Freepik The post Agentic AI Poised to Transform Financial Services Through Automation and Personalization appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The Swiss Financial Market Supervisory Authority (FINMA) has continued to improve the efficiency of its authorisation process for enquiries related to distributed ledger technology (DLT) and blockchain. Each year, FINMA receives approximately 100 such enquiries. Over the past three years, it has reduced the average time required to respond from 141 days to 25 days, representing a reduction of 82%. This improvement has occurred despite the increasing complexity of the issues raised. According to FINMA, its growing experience in these areas has contributed to the reduced processing times. The authority has also introduced procedural changes to facilitate effective handling of enquiries. Authorisation enquiries can now be submitted through an electronic survey platform. FINMA has made a quick guide to the electronic submission process available on its website. FINMA distinguishes these enquiries from license applications submitted under Article 1b of the Banking Act, commonly referred to as fintech licenses. These applications mainly relate to the provision of payment services in national currencies. In order to assess such license applications more efficiently, FINMA recommends the submission of a preliminary enquiry. This allows the authority to provide an initial regulatory assessment. “The initiators of the project thus receive valuable feedback on any obstacles to licensing or other important issues,” FINMA stated.   Featured image credit: FINMA The post FINMA Reduces Response Time for Fintech Authorisation Enquiries appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Zürcher Kantonalbank (ZKB) has observed sustained interest and broader internal application of its in-house AI tool, ZKB ChatGPT, following a two-month test phase, according to a press release. The tool is now routinely used for research, drafting and editing of texts, and summarisation tasks across departments. Usage of ZKB ChatGPT has since extended to more complex tasks. In the area of Structured Finance, for example, the team has integrated the tool into the credit process for large clients. Where company profiles were previously created manually, ZKB ChatGPT now assists by generating a first draft based on a custom prompt and existing training data. Information is automatically extracted from annual reports to refine the content. The final output is reviewed and completed by subject matter experts. The bank is continuing to adapt staff training, particularly in prompt engineering, to support effective use of the tool. The AI team notes that further potential remains, and ongoing improvements to functionality are planned. ZKB’s collaboration with Microsoft plays a central role in the implementation. Through the Azure cloud platform, ZKB has access to scalable infrastructure and recent developments in AI. Christian Sebregondi, Head of Artificial Intelligence at ZKB, stated: Christian Sebregondi “The collaboration with Microsoft has advanced us technologically and strengthened our overall capacity for innovation. Through access to the latest technologies and the ability to continuously evolve, we can always offer the best solutions to our employees and clients.” Christian Thier, Financial Services Industry Lead at Microsoft, commented: Christian Thier “The implementation of ZKB ChatGPT on our Azure cloud platform shows how powerful and flexible our solutions are. We are pleased to support ZKB in further digitalisation and boosting efficiency.” ZKB views AI as a long-term factor in workplace transformation and productivity. While it supports automation of routine tasks, the expertise of experienced professionals remains essential. The bank expects AI to create additional capacity for strategic and creative work, with the aim of improving service quality over time.   Featured image credit: Edited by Fintech News Switzerland, based on image by user850788 via Freepik The post Zürcher Kantonalbank Expands Use of AI Tool ZKB ChatGPT appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Berlin-based payment software provider Payrails has announced the successful completion of a US$32 million Series A funding round aimed at furthering its goal of enabling enterprises to manage and streamline their payment operations. The investment will support product innovation, broaden the company’s roadmap, and strengthen its commercial presence across EMEA in response to growing enterprise needs. The round was led by HV Capital’s Growth Fund, with continued backing from existing investors EQT Ventures, General Catalyst, and Andreessen Horowitz. This latest round brings Payrails’ total funding to over US$52.8 million. Payrails was founded by former senior leaders from Delivery Hero with extensive experience in building global financial infrastructure. The Series A round, among the largest for a European fintech this year, follows a period of significant growth. In 2024, Payrails recorded over 1 million daily operations, expanded into 30 new markets across Europe and MENA, and secured enterprise clients across various sectors including e-commerce, mobility, financial services, and subscription platforms. Notable clients include Puma, Vinted, Flix, InDrive, Just Eat Takeaway, and Careem. Commenting on the announcement, Orkhan Abdullayev, Co-Founder and CEO of Payrails, said: Orkhan Abdullayev “Their continued support fuels our vision of empowering enterprises with an all-in-one platform to manage every aspect of payments, unlocking new levels of performance and innovation while driving down complexity and costs. With this funding, we’re doubling down on product development to expand our multi-product platform across the entire payment lifecycle.” He added that Payrails’ operating system “is setting a new industry standard for how enterprises manage and optimise payments, with more control, visibility and flexibility than ever before.”   Featured image credit: Edited by Fintech News Switzerland, based on image by Frolopiaton Palm via Freepik The post Germany’s Payrails Raises $32M in Series A Round appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

I Believe In You (IBIY), Switzerland’s sports crowdfunding platform, has announced a series of strategic and operational changes, including new board appointments and shareholder additions. Michi Frank, former Chief Executive Officer of the Goldbach Group and a long-standing figure in Swiss media, has joined the board of directors at IBIY and acquired shares in the company. Frank brings substantial experience at the intersection of sports, media, and business development. Speaking on his decision to join, Frank stated: Michi Frank “The connection between sports, digitalisation and media visibility is central to the future of sports promotion. I Believe In You has long been a pioneer in this space and continues to take bold steps forward. That convinced me.” In addition to Frank, David Cappellini, founder of the communications agency Monami and advisory board member at FC Winterthur, has also acquired a stake in the company. Cappellini has been a board member at IBIY for some time and brings experience in brand strategy and sports communication. IBIY has also undergone changes in its executive leadership. As of January 2025, the company is led by new Chief Executive Officer Pascal Magyar, a former decathlete and previously the head of elite sport in the canton of Aargau. In May, IBIY appointed Chris Earle, formerly with RED Plus, as a creative strategist, further strengthening the company’s operational capabilities. Fabian Kauter, Founder and Chairman of the board, commented: Fabian Kauter “I am very pleased about Michi joining the board. It was a good fit from the start. I Believe In You is also gaining two new shareholders who believe in our direction and are committed to Swiss sport. With our newly formed team, we are ready for the next phase.” The new appointments and strategic changes are aimed at expanding the platform’s crowdfunding services, fostering new partnerships and enhancing the support available to athletes, companies and organisations across Switzerland through increased media engagement.   Featured image credit: I Believe In You The post Sports Crowdfunding Platform I Believe In You Appoints New Board Members and CEO appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Stablecoins are rapidly evolving from a niche vertical in the cryptocurrency ecosystem into a foundational element of the global financial system. A new analysis by CB Insights, in partnership with industry player Stablecon, looks at this burgeoning ecosystem, highlighting key trends emerging in this industry, and mapping the sector’s top players. One of the main trends outlined in the report is the increased participation of traditional financial institutions, drawn by stablecoins’ combination of fiat-like price stability with the speed, efficiency, and programmability of blockchain technology. Notably, Mastercard and Visa now support stablecoin transactions. Meanwhile, established banks such as France’s Societe Generale and Vantage Bank from the US have begun issuing their own stablecoins. Increased involvement from the traditional financial industry is supported by the advent of blockchain infrastructure providers like Zero Hash and Fireblocks, which are offering technology geared towards traditional financial institutions looking to integrate stablecoin capabilities The report also highlights the expansion of stablecoins beyond their original function as safer alternatives to high-risk cryptocurrencies. These tokens are now being used in yield-bearing tools and liquidity products. For example, Paxos, an established stablecoin issuer, launched in June 2024 a yield-bearing stablecoin called Lift Dollar (USDL). Stripe, which acquired stablecoin orchestration platform Bridge in February 2025, has added payment capabilities for the company’s USDB stablecoin, which generates yield through backing by BlackRock money market funds. Finally, the report notes that stablecoins are increasingly being used for cross-border payments. In countries with robust traditional banking, stablecoins serve as specialized alternatives to fiat currency for specific use cases, while in emerging markets, stablecoins are providing more affordable and accessible USD alternatives. Mesta, for example, is an American startup offering an application programming interface (API) global fiat and stablecoin payment network supporting USD/EUR/GBP/USDC/USDT to 50+ global currencies across 100+ countries. Another example is Infinite, a stablecoin payment processor offering businesses APIs and a turnkey software development kit (SDK) for embedded global stablecoin payments. Stablecoin market map The report also maps the global stablecoin landscape, identifying 172 recently funded players that demonstrated strong momentum. These firms are categorized into eight segments based on their core business focus and were selected based on CB Insights’ Mosaic score, which assesses private-company health and growth potential based on funding data, personnel, market strength, and online sentiment. The map reveals that stablecoin issuers, which create, distribute, and manage stablecoins, currently represent the largest category by number of companies. These companies also have the highest average M&A probability (24%) among segments, signaling high consolidation potential as the market matures and  strong interest from traditional financial acquirers. Leading companies in this vertical include Ripple, an established blockchain infrastructure provider that offers the RLUSD stablecoin, and Circle, the issuer of the USDC and EURC stablecoins. The analysis also found that the liquidity and yield category is attracting significant funding. Over the last 12 months, the vertical has secured US$2.3 billion across 40 deals, the most funding of any category. This category includes platforms, protocols, and services that enable users to deploy stablecoins to earn returns, provide market liquidity, or access lending/borrowing capabilities. Prominent startups in this category include StakeStone, a cross-chain liquidity protocol, and Flowdesk, a market maker providing trading infrastructure from France. The wallets and custodians category, which includes applications, platforms, and services that enable users to store, manage, and transact with stablecoins, have experienced the highest average headcount growth (83%) of any market map segment over the past year. For example, Kast, a Hong Kong startup offering services for spending stablecoins and cryptocurrencies, has increased its headcount by tenfold, the report says. Finally, the payments processing segment, though still relatively early in its commercial development, is demonstrating significant growth potential. CB Insights estimates that companies in this category are expected to receive US$454 million in funding in 2025, up more than tenfold from the US$45 million they received in 2024. Currently, half of the companies in the payments processing vertical are still either developing or piloting their products. Notable companies in this segment include Rain, a card issuance and payments platform for stablecoin transactions, and Mesh, a crypto payments network from the US. Stablecoin Market Map, Source: Stablecon and CB Insights, May 2025 The stablecoin market is currently worth about US$255 billion, according to CoinMarketCap. By 2028, that value could grow nearly tenfold to US$2 trillion after the passage of US legislation that seeks to provide a regulatory framework for these cryptocurrencies, Standard Chartered estimates. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which was cleared by the Senate Banking Committee in March, is expected to be passed in the US in the coming weeks.   Featured image: Edited by Fintech News Switzerland, based on image by EyeEm via Freepik The post Stablecoins Gain Ground in Finance, Key Trends Include Yield Products, Cross-Border Payments appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Cryptocurrency adoption has increased remarkably over the past year, driven by European customers, and younger generations. according to a new survey commissioned by Gemini. Positive developments, including the launch of US cryptocurrency exchange-traded funds (ETFs) and pro-crypto policies from the Trump administration, have also contributed to rising confidence and interest in digital assets, the study found. Conducted in H1 2025, the research polled more than 7,200 consumers in the US, the UK, France, Italy, Singapore, and Australia. It sought to assess the level of awareness of cryptocurrencies, motivations for owning and trading cryptocurrencies, general attitudes towards cryptocurrencies, and opinions on recent industry developments. Europe leads in crypto ownership growth The survey found that although crypto ownership increased across all studied geographies in 2025, growth was the strongest in Europe. In the UK, crypto ownership rose 6 points year-over-year (YoY), reaching 25% in 2025. France also recorded a significant gain of 3 points YoY, climbing to 21%. Growth was more modest in Singapore and the US, with increases of 2 and 1 points, respectively. Nevertheless, these two countries remain among the global leaders in crypto adoption, with ownership rates of 28% in Singapore and 22% in the US in 2025. YoY ownership percentage in crypto, Source: 2025 State of Crypto Report, Gemini, May 2025qYoY ownership percentage in crypto, Source: 2025 State of Crypto Report, Gemini, May 2025 Gen Z and Millennials dominate crypto investment Unsurprisingly, the study found that crypto ownership is significantly higher among younger demographics. Among respondents aged 18 to 44, 52% of Millennials and 48% of Gen Z reported owning or having previously owned cryptocurrency. That’s significantly higher than the general global population, at 35%. In contrast, Gen X and Boomer respondents, aged 45 to 70, recorded significantly lower rates of owning or previously owning crypto, at 26% and 11%, respectively. Percentage of owners versus past owners versus non-owners by generation, Source: 2025 State of Crypto Report, Gemini, May 2025 Memecoins drive broader crypto adoption The report also highlights the role memecoins have played in attracting new investors, with many users beginning with these cryptocurrencies before moving into more established ones such as bitcoin or ether. In the US, 31% of investors who now own both memecoins and traditional cryptocurrencies reported that they purchased their memecoins first. Similar patterns were seen in Australia (28%), the UK (28%), Singapore (23%), Italy (22%), and France (19%). However, globally, 94% of memecoin owners also own other types of crypto, suggesting that memecoins mostly serve as a first step into broader digital asset investment. The study found that overall, France led in memecoin adoption, with 67% of crypto investors owning memecoins. France was followed by Singapore (59%), Italy (58%), the UK (57%), the US (55%), and Australia (45%). Memecoins have drawn significant trading volume over the past year. The category’s total market capitalization currently stands at US$62 billion, with daily trading volume stands at US$8.5 billion now amounting to about US$8.5 billion, according to data from CoinMarketCap. Dogecoin dominates the category with a market capitalization of US$28.5 billion, followed by Shiba Inu at US$7.6 billion, and Pepe at US$5.3 billion. Percentage of crypto owners who allocate at least half of their assets to memecoins, Source: 2025 State of Crypto Report, Gemini, May 2025 Spot crypto ETFs continue to gain market share The research also highlights the growing popularity of spot crypto ETFs. In the US, 39% of crypto owners reported investing in a crypto ETF, up from 37% in 2024. These products have also become popular in Italy (47%), the UK (41%), Singapore (40%), Australia (38%), and France (32%). Spot crypto ETFs were first launched in the US in January 2024, marking a major milestone for the sector. These instruments, which are traded on traditional bourses, allow investors to gain direct exposure to cryptocurrencies through a regulated investment vehicle, making it easier for traditional investors and institutions to enter the crypto market without needing to manage wallets or use exchanges directly. Since their introduction, spot crypto ETFs have attracted billions in inflows. Within the first month of trading, daily trading volume totaled nearly US$8 billion, marking a 63.8% increase from their first day of trading, and demonstrating strong investor interest. Percentage of people who bought crypto in an ETF in the US versus a wallet versus both, Source: 2025 State of Crypto Report, Gemini, May 2025 Trump administration’s support sparks confidence Another key driver of crypto adoption outlined in the Gemini report is the pro-crypto stance of the Trump administration. According to the survey, nearly a quarter (23%) of non-crypto owners in the US said President Trump launching a Strategic Bitcoin Reserve increased their confidence in the value of cryptocurrency, a sentiment that was echoed globally by non-owner respondents in the UK (21%) and Singapore (19%). Percentage of non-owners who said the Strategic Bitcoin Reserve make them more confident in the value of crypto, Source: 2025 State of Crypto Report, Gemini, May 2025 President Trump has pledged to support digital assets, with initiatives including the establishment of a Strategic Bitcoin Reserve and a US Digital Asset Stockpile, the appointment of crypto-friendly regulators, and backing for proposed legislation on stablecoins and digital assets. The President has also embraced the memecoin frenzy, having launched the $Trump and $Melania crypto-tokens.   Featured image: Edited by Fintech News Switzerland, based on image by thanyakij-12 via Freepik The post Crypto Adoption on the Rise, Driven by Europe, Younger Demographics appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Blackstone, a US-based alternative asset management firm, is planning to invest up to US$500 billion in Europe over the next decade, CEO Steve Schwarzman told Bloomberg Television in an interview on June 10, underscoring the company’s growing confidence in the region’s economic outlook. Schwarzman described Europe as a “major opportunity” for the firm, which is headquartered in New York and manages more than US$1 trillion in assets, making it the world’s largest alternative asset manager. With US President Donald Trump reshaping global alliances and trade policies, Europe is exploring new avenues for economic growth, potentially opening the door to promising investment opportunities for firms like Blackstone. One such area is defence spending, a sector that has often been overlooked by private investors. The European Union is significantly increasing its investment in defence, with Germany, Europe’s largest economy, approving historic spending plans in March. According to S&P, the US and Canada have attracted 83% of all private equity and venture capital-backed aerospace and defence investment since 2020. However, Europe is beginning to shift its approach. Steve Schwarzman “That’s changing, which we think will result in higher growth rates. So this has worked out amazingly well for us,” Schwarzman told Bloomberg Television. Blackstone has already invested around US$100 billion in the UK and employs 650 people in its London office, he added. Schwarzman supported Trump in the US presidential election last year, according to a report by Axios, and has long been viewed as an ally of the president. However, Trump’s erratic tariff policies have led many companies to reconfigure their supply chains and reduce exposure to the US market.   Featured image credit: Edited by Fintech News Switzerland, based on image by user9145455 via Freepik The post US’ Blackstone Plans $500B Investment in Europe Over Next Decade appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

The Swiss Fintech Awards marked their tenth edition on the evening of 11 June in Zurich, celebrating start-ups and individuals making notable contributions to the Swiss fintech ecosystem. tiun Named “Early Stage Start-up of the Year” The early-stage award was presented to tiun, a start-up positioning itself as the “SBB EasyRide for the internet”. The company provides a new payment model for digital content such as newspaper articles, videos, and podcasts. Rather than relying on subscriptions or single-item purchases, tiun allows users to pay based on actual usage. This model aims to help content providers, such as publishers, attract more users and diversify their existing paywall strategies. tiun’s system seeks to offer a more flexible consumption model for online content. Also shortlisted in the early-stage category was Yainvest, which provides asset managers with a software-as-a-service platform. It leverages behavioural finance principles and artificial intelligence to better understand investor behaviour and reduce costly errors in financial decision-making. Taurus Wins “Growth Stage Start-up of the Year” Taurus, a provider of digital asset infrastructure, received the award in the growth-stage category. Its platform enables secure storage, tokenisation, and trading of digital assets. Recently, the firm introduced an interbank settlement system aimed at supporting future capital market infrastructure. Rivero, another finalist in this category, offers a range of SaaS tools for stakeholders in the payments ecosystem. Its products are designed to digitise and automate key functions in the payment process. Marc Bernegger Named “Fintech Influencer of the Year” Marc Bernegger Marc Bernegger was recognised as the “Fintech Influencer of the Year” for his long-standing role in shaping the Swiss fintech landscape. More than a decade ago, Bernegger co-founded one of Switzerland’s earliest fintech conferences. He later co-founded Crypto Finance in 2017, which was acquired by Deutsche Börse four years after its launch. In 2018, Bernegger also helped establish the Swiss Blockchain Federation and served on its board for six years. As an investor and board member, he has supported several fintech start-ups and contributed to the strategic development of various organisations. The award acknowledges his influence on the Swiss fintech sector over the past ten years.   Featured image credit: Swiss Fintech Innovations The post Meet the Winners of the Swiss Fintech Awards 2025 appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Stripe has announced the acquisition of Privy, a software company focused on simplifying access to crypto infrastructure through user-friendly wallet technology. The acquisition marks a continued commitment by both companies to support developers building financial applications that bridge traditional and crypto systems. Privy, which launched just over three years ago, was founded with the aim of making crypto infrastructure more accessible to developers. By offering a simple API, Privy enables secure wallet creation, transaction signing, and integration with onchain systems. To date, Privy supports more than 75 million accounts and works with over 1,000 developer teams, facilitating billions in transactions across a variety of use cases. Privy will continue to operate independently as part of Stripe, with its team focused on improving its products and serving its existing customer base. This partnership is expected to accelerate product development and provide enhanced capabilities for developers using either platform. The core challenge Privy set out to solve was the friction users experienced when interacting with crypto wallets, particularly the need to leave an application to set up a wallet. This hurdle reduced user conversion and limited what developers could build. Privy aimed to abstract this complexity, enabling digital assets to be used as seamlessly as other online tools. Organisations currently using Privy include trading platforms, restaurants accepting digital assets, and companies managing global payroll in digital currencies. These varied use cases demonstrate the breadth of adoption and highlight the growing role of digital assets in everyday applications. Stripe and Privy share a belief in integrating crypto and fiat systems to the point where the distinction between the two becomes minimal. This acquisition reflects Stripe’s broader strategy to support new financial technologies and provide developers with tools to build inclusive, efficient financial services. Both companies will continue to support their existing developer communities, with a shared goal of making digital ownership more usable and widespread.   Featured image credit: Edited by Fintech News Switzerland, based on image by pvproductions via Freepik The post Stripe Acquires Privy to Strengthen Crypto Infrastructure Offering appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

In May, the House Republicans’ “One Big Beautiful Bill Act” passed through the US House of Representatives, outlining US President Donald Trump’s tax agenda for the next few years and introducing a new 3.5% tax on remittances by non-citizens. A new analysis by FXC Intelligence, a data platform specializing in the cross-border payment and e-commerce sectors, explores the potential effects of the proposed tax on money transfers, warning of increased costs for consumers, the growth of informal and unregulated cross-border payment methods, and the introduction of operational challenges for money transfer providers. Higher costs for migrant workers Under the proposed law, this 3.5% tax would be charged on the amount being sent, meaning that it would come in addition to the costs charged by the remittance provider. According to the report, this means that an international transfer of US$100 could cost up to twice as much than it currently does, while sending US$1,000 could cost three times more. Such an increase would pose a significant burden for migrant workers in the US, since many of them regularly send between US$200 and US$300 home every one or two months, constituting around 15% of what they earn. While this amount may seem modest, it can represent up to 60% of the recipient’s household’s total income. Moreover, the United Nations (UN) has set out a sustainable development goal of reducing the global average cost for sending US$200 to 3% or less by 2030. The current average currently stands at 6.4% and a new US remittance tax would only worsen the situation, the report says. The rise of informal cross-border payment methods The analysis also warns that a 3.5% tax on remittance could change the way consumers send money, possibly pushing senders toward informal channels like “mules” and hawala networks, which are an informal method of transfers through unlicensed brokers. This shift could hurt licensed money transfer companies, but also smaller businesses that partner with providers like grocery stores hosting Western Union outlets, which may see reduced footfall and revenue due to lost businesses. Furthermore, an influx of “underground” transactions outside regulated money transfer providers would make it harder for law enforcement agencies from being able to track how money is moving, increasing risks tied to money laundering, terrorism financing, and drug trafficking. Argentina is a relevant example of this. Under previous administrations, foreign exchange and capital controls drove transactions into underground banking networks, making it far harder to trace illicit activity. These restrictions also weakened the already vulnerable economy, contributing to stagnation and inflation. Another possible effect of the bill is the rise in cryptocurrency-based remittances. Cryptocurrencies present an appealing alternative, especially in countries like Venezuela, Mexico, and Argentina where crypto adoption has been among the highest globally, according to a ChainAnalysis report. Potential impact of a remittance tax on consumer behiavor, Source: FXC Intelligence, May 2025 Operational challenges for money transfer providers In addition to losing customers to informal channels, licensed providers may be burdened by new compliance requirements. According to Kathy Tomasofsky, Executive Director of the Money Services Business Association (MSBA), such taxes add expenses and introduce a new set of hurdles to companies without seeing a benefit, forcing them to either pass on those costs to consumers, or cut their services to existing states. Part of this is from the difficulty of installing systems for verifying and ensuring that customers are US citizens. For example, if someone goes to Western Union to send money and shows their ID, Western Union would have to keep proof that they checked the person’s identity. This might mean taking a photo of the person’s passport and storing their information in a secure way. Setting up such a system would cost money and could lead to privacy concerns, because the company would be storing sensitive personal information. Moreover, the bill mandates that only “qualified” money transfer providers who enter into specific agreements with the government can exempt US citizens and nationals from the tax. However, it remains unclear how to register as a qualified provider and whether it will cost any money to do so. These ambiguities, combined with existing regulatory obligations, could lead some providers to charge the 3.5% tax to everyone, including US citizens, to avoid dealing with the hassle of checking everyone’s identity. Potential impact of a remittance tax on money transfer operators, Source: FXC Intelligence, May 2025 Discouraging foreign investment in the US But perhaps more worryingly, the Tax Foundation, an international research think tank based in Washington, DC, warns that the tax could dissuade foreign investment in the US by complicating international transactions and potentially misclassifying fund movements as taxable remittances. One example would be an international investor who maintains an account within the US for the purpose of business. If this investor wishes to transfer funds to another account outside the country, the transaction may bear the appearance of a remittance. But it is not one as the investor would simply be withdrawing their own money, not transferring funds to another person. A money transfer provider may struggle to verify this, wrongfully charging the investor withdrawing their investment returns, and effectively disincentivizing further and future foreign investment in the US. Another potential problem arises for businesses with international operations or supply chains. For example, a small business in the Detroit-Windsor, Ontario area may have hundreds of transactions with Canadian and US customers, suppliers, and employees. However, these transactions are not remittances, and would be subject to a burdensome process to prove so. Missing the mark Overall, industry experts believe that the proposed remittance tax will not be effective at achieving its intended goal of increasing federal revenue as people sending money abroad will likely find maneuvers to circumvent the charge. The Joint Committee on Taxation estimates that the tax will generate a mere US$26 billion over the next 10 years, a modest amount considering the administrative burden, and potential economic distortions associated with implementing such a tax. The proposed “One Big Beautiful Bill Act” is a broad and ambitious piece of legislation that combines a wide range of fiscal, economic, and regulatory reforms into a single package. Its primary purpose is to reduce the federal deficit and streamline government spending ahead of a critical debt ceiling deadline. Alongside the 3.5% tax on remittances, the bill includes reductions in non-military government spending and significantly cuts spending on the Supplemental Nutrition Assistance Program (SNAP) and Medicaid. It also allocates an additional US$150 billion for defense spending, while scaling back many clean-energy tax credits from the Inflation Reduction Act. With the bill having passed the House of Representatives last month, the legislation is now moving to the Senate where key provisions are expected to be debated and amended. Once the Senate finalizes the text, it will head to the President’s desk, expected to be signed into law by early July.   Featured image: Edited by Fintech News Switzerland, based on images by Allexxandar and chayanuphol via Freepik The post US Remittances Tax: Experts Warn of Higher Costs for Consumers and Operational Challenges for Money Transfer Providers appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.

Barclays has announced the opening of a new Innovation Hub in London, developed in collaboration with several key players in the technology sector, including Microsoft and NVIDIA. The Hub, part of Barclays’ Eagle Labs network, will focus on supporting early-stage businesses in the fields of AI, deep tech, and broader innovation. It aims to bring together entrepreneurs, investors, and industry experts to foster growth within the UK’s tech sector. Located in Shoreditch, the Hub will provide workspace for up to 150 businesses, and will offer access to events, workshops, and business development programmes. Companies based at the Hub will also have the opportunity to connect with organisations involved in its development, such as Microsoft, NVIDIA, Conception X, Databricks, Innovate Finance, and Twin Path Ventures. Barclays’ innovation banking team will also be based on-site, offering guidance and support to founders. The partners will help shape the ongoing development of the space, with plans to meet regularly to assess how best to support the businesses that use it. Hannah Bernard, Head of Business Banking at Barclays, said: Hannah Bernard “Key players from across the industry need to come together to help nurture and develop the next wave of tech entrepreneurs, this new Innovation Hub will play an important role in facilitating that as part of our wider offering to tech businesses. Our innovation banking specialists will be on hand to provide tailored support to founders, helping them raise capital, develop business skills and accelerate their growth.” Ali Wright, SMB Director at Microsoft UK, added: Ali Wright “The UK has a rich entrepreneurial history, and the Barclays Innovation Hub will form a critical focal point for the next wave of innovators looking to bring their ideas to life with the power of AI. Microsoft is delighted to be a launch partner, and we look forward to providing expertise and access to services that will help aspiring organisations fulfil their potential and fuel growth across the UK economy.” The launch of the new Hub builds on Barclays’ existing support for UK entrepreneurs through its Eagle Labs initiative, which operates in 43 locations across the country and has supported over 17,000 businesses since its inception.   Featured image credit: Barclays The post Barclays Opens Innovation Hub in London to Support AI and Deep Tech Startups appeared first on Fintech Schweiz Digital Finance News - FintechNewsCH.