Latest Payments News: MAS’s BLOOM Initiative Aims To Expand Safe Stablecoin Use In Payments, and more

Catch up on some of the stories our payments compliance analysts have covered lately, and stay up-to-date on the latest news.

MAS’s BLOOM Initiative Aims To Expand Safe Stablecoin Use In Payments

Singapore’s pragmatic yet forward-looking stance on stablecoins encourages innovation in payments, but only when supported by robust regulation and strong consumer protection.

The Monetary Authority of Singapore (MAS) has launched a new initiative, BLOOM – short for Borderless, Liquid, Open, Online, Multi-currency – to extend settlement capabilities offered by financial institutions and strengthen Singapore’s position in the evolving digital asset ecosystem.

BLOOM will see the regulator collaborating with the financial services industry to enable settlement via tokenised bank liabilities and regulated stablecoins, while mitigating associated risks through standardised approaches.

BLOOM builds on Project Orchid, an exploratory MAS initiative launched in 2021 to investigate potential use cases for a digital Singapore dollar and its supporting infrastructure.

Project Orchid completed more than ten successful trials, producing detailed industry reports and practical applications. Participating financial institutions have since developed commercial solutions inspired by these findings.

The BLOOM initiative reflects growing industry interest in digital settlement assets such as tokenised deposits and regulated stablecoins and demonstrates MAS’s commitment to innovation.

It will support multiple G10 and Asian currencies, covering both domestic and cross-border payment scenarios. Initially, the initiative will target wholesale use cases, including corporate treasury management, trade finance and emerging agentic payments (AI-driven automated transactions).

Timeline For PSR/FCA Merger Provides Breathing Room on Payments Oversight

News that the UK’s Payment Systems Regulator (PSR) will continue to operate as an independent entity until at least the end of 2026 means ongoing investigations can continue, and should not negatively affect payments firms.

Appearing before the Treasury Select Committee, David Geale, who now serves as both the FCA’s director of payments and managing director of the PSR, said that although the government’s consultation on the legislation to formally subsume the PSR into the FCA closes next week, he does not expect the legislative changes before late 2026.

“The PSR still exists and we continue to run it as an independent subsidiary of the FCA,” Geale said.

“We are not sitting still, though. My role is now double-hatting, which brings together the two payments areas, payment systems and payment firms, in one place.”

He added that although the PSR and FCA boards remain separate, integration is already underway across governance, operations and communications.

For example, from October 20, 2025, the PSR’s press office has been incorporated into the FCA’s communications department, as confirmed by an email sent to stakeholders on October 17.

Geale stressed that the move is “not necessarily about reducing headcount” but about streamlining regulatory oversight and improving efficiency.

All PSR staff are contractually FCA employees, and work has already begun to align their roles with FCA structures.

“Some people may end up doing something slightly differently,” Geale said. “By virtue of the size and scale of the organisation, one person in the PSR may be doing the equivalent of three jobs in the FCA.”

The PSR’s merger with the FCA was announced in March 2025, as part of the UK government’s plans to simplify the country’s financial regulatory landscape.

When questioned by the Committee on potential cost savings, Geale said these would likely become visible only once the legislation takes effect.

“We will obviously look very closely at the PSR budget and look to spend it wisely,” he said. “Firms will already see an element of rationalisation, for example, joint meetings with both regulators rather than two separate ones.”

The PSR will remain legally distinct until Parliament passes the necessary legislation.

Instant By Default: Will Instant Payments Finally Become The Norm In Europe?

The EU’s Instant Payments Regulation (IPR) is now in force, requiring eurozone payment service providers (PSPs) to send and receive instant payments at no additional cost. It remains to be seen how significantly this will affect the uptake of instant payments across the EU.

Since January 2025, PSPs that operate in the Eurozone have been required to offer their clients the ability to receive euro instant payments.

As of this month, these requirements have expanded: PSPs are now obligated to enable clients to send instant payments in euros and to provide verification of payee (VoP), with the aim of reducing fraud.

“The Instant Payments Regulation will substantially improve the daily lives of our citizens and businesses by allowing them to send and receive payments instantaneously, round the clock,” said Maria Luís Albuquerque, EU commissioner for financial services and the savings and investments union.

Albuquerque, who was previously Portugal’s finance minister, added that the new rules will make transactions more secure, with PSPs required to verify the intended beneficiary and send an alert to the payer in case of error or suspected fraud.

“We will monitor the concrete implementation in Member States so that everyone can fully benefit from these new rules.”

FCA Findings Bolster Case for Wider Liability in Tackling Romance Fraud

The UK Financial Conduct Authority’s (FCA) discovery of widespread failings in how financial institutions detect, prevent and respond to romance fraud strengthens the argument for extending liability to social media and telecoms firms.

According to the FCA’s review, romance fraud cost victims more than £106m in the 2024–25 financial year, a nine percent increase on the previous period.

In one of the most serious cases, a single victim lost £428,000.

Romance scams typically involve criminals building false emotional or romantic relationships with victims, often through social media or dating sites, before persuading them to send money. Around 85 percent of cases originate online.

Steve Smart, executive director of enforcement and market oversight at the FCA, described it as a “vicious crime”.

“All too often it is the vulnerable that fall victim. The impact, financially and personally, can be devastating. We recognise the challenge banks and payment firms have in combating this complex crime and this review aims to help them stay one step ahead of the criminals,” he said.

He added that consumers “all need to be on guard so we can protect ourselves and loved ones by recognising the romance fraud red flags.”

EU Fintech Coalition Urges Policymakers to Preserve Open Finance Ambition

Fintech associations argue that the Financial Data Access (FiDA) framework will unlock meaningful consumer benefits and new business opportunities, while cautioning that delays or scope reductions would hinder Europe’s competitiveness.

In a joint statement addressed to EU ambassadors ahead of trilogue negotiations, more than 20 industry groups called for the preservation of FiDA’s original ambition, as outlined by the European Commission.

The signatories argued that the framework is essential for delivering an open finance ecosystem in which individuals and businesses can access, share and reuse their financial data securely and efficiently across payment, savings, investment, insurance and pension services.

The industry letter warns against efforts to narrow the scope of the proposal or exclude large corporate entities, arguing that such changes would fragment the single market and reverse progress made since the second Payment Services Directive (PSD2).

The associations maintain that Europe’s competitiveness depends on enabling a vibrant open finance ecosystem and allowing both consumers and firms to benefit from secure, permission-based data portability.

“If this continues, it risks becoming another huge waste of time and money for everyone involved, just like PSD2. History is repeating itself,” said Ralf Ohlhausen, chair of the European Third Party Providers Association (ETPPA).

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