Tanaan Quek

Agentic AI is reshaping payments through autonomous transactions and adaptive learning, but legal, regulatory, and liability challenges remain unresolved. Agentic AI generally refers to AI systems with enhanced autonomy that can behave and interact independently to achieve their objectives. It is capable of executing instructions, learning from its environment, and adapting processes for executing those instructions.

On 25 September 2024, the UK Financial Conduct Authority (FCA) published its long-awaited Consultation Paper (CP24/20) setting out proposed changes to the safeguarding rules applicable to electronic money institutions (EMIs) and payment institutions (PIs) (together, Payments Firms). If the reforms are implemented as proposed, this will be the most significant set of changes since the rules were created.

On 28 June 2023, the European Commission published proposals for a third Payment Services Directive (PSD3), and a Payment Services Regulation (EU PSR). PSD3 will repeal and replace the second Payment Services Directive (PSD2) and the second Electronic Money Directive (EMD2), combining the separate regimes for payment services and electronic money into a single regime.