RedCompass Labs has been one of the many companies operating in the financial field leading the charge to uncover new payment possibilities when it comes to AI this year.
But after a year of significant growth of AI, mainly down to the sophistication of Generative AI, how can the emerging tech revolutionise other fields?
Three executives from RedCompass Labs shared with Payment Expert their predictions for this year when it pertains to AI’s ability to automate payments, how new UK fraud regulations will impact the payments sector, and how instant payments will continue to develop across the globe.
Tom Hewson, CEO, RedCompass Labs

AI
The rate of change in payments has never been this fast and will never be this slow again. 2025 will be no different.
Next year, AI models that can draw from formerly untapped human expertise will arrive. Payments knowledge that lives behind firewalls (regulatory and bank documentation) and within payment experts’ heads will be used to train large language models. With the help of AI assistants, payment experts will prepare, review, and deliver documentation for payments modernisation projects in half the time and at half the cost.
Multi-agent AI models tuned for accuracy, not speed, will work 24/7. Free from the mundanity of typing, analysts can focus on design and review. The productivity and time benefits will be enormous – but they will be enjoyed only by those who have Applied AI, trained and tuned specifically for payment modernisation, led and guaranteed by payment experts
As a bank, if you don’t embrace AI in 2025, you will face bigger costs and slower change than those you are competing with. But if you leverage the billions invested in AI, use the tools available, and gather industry knowledge, you have a chance to keep up with the rate of change.
Silvija Krupena, Director of Financial Intelligence Unit, RedCompass Labs
Fraud

This year marked a turning point in the global discussion around fraud prevention. The UK Payment System Regulator’s landmark move to mandate reimbursements for APP fraud up to £85,000 represents a huge step forward in protecting consumers from financial losses. However, it will do little to solve the problem.
Splitting consumer losses between banks does not prevent fraud. We need to stop it at the source. Given that 76% of fraud originates online, particularly on Meta-owned platforms like Facebook and Instagram, social media firms should be held accountable.
Whether through penalties, financial contributions, or awareness campaigns, social media must take responsibility for the role they play in enabling fraud. This approach demands the commitment of every stakeholder in the ecosystem which includes banks and social media platforms, but also technology companies, regulators, law enforcement, and consumers. Unfortunately, we’re still far from this kind of collaboration in the UK.
As we look to 2025, Australia’s approach may serve as a better model. Its proposed unified scam-prevention network shows that an integrated, ecosystem-wide effort is not only possible, it’s essential. It’s time to move from subsidising criminals to proactively preventing fraud through collaboration, technology, and public awareness.
Pratiksha Pathak, Head of Payments Services, RedCompass Labs
Instant Payments

2024 has been a transformational year for instant payments. Europe’s banks have been racing to prepare for the SEPA Instant Payments Regulation, which entered into force in April.
In the US, RTP and FedNow set new transaction volume records. And in Canada, banks were given a clear path toward the launch of the Real-time Rail which is due to launch in 2026.
The year ahead promises progress, but banks will face even greater challenges with major deadlines for SEPA Instant and ISO 20022.
To get ready, banks must overhaul core payment systems, upgrade client-facing channels, modernise fraud detection tools, and enhance middleware. They must do so while maintaining system uptime and ensuring seamless, real-time data synchronisation across multiple platforms. Scalability, interoperability, and security will be critical benchmarks for success, as will managing fraud. It’s a massive challenge.
But the rewards are transformative. UPI in India and Pix in Brazil boast 300 million and over 160 million users, respectively. These systems have shown to boost financial inclusion, strengthen supply chains, and release billions currently tied up in inefficient payment networks.