Feel free to modify any of these to better fit your style or focus!

Executive summary

European fintech entered late‑2025 with steadier funding, resilient payments growth, and a regulatory super‑cycle (PSD3/PSR, MiCA, and FiDA) that will reshape economics for wallets, PSPs, neobanks, and crypto providers over the next 18–30 months. Major platforms like Adyen, Wise, Klarna, and Revolut are adjusting strategy around fraud liability, open finance, instant payments, and capital markets moves, while the European Payments Initiative’s Wero wallet is accelerating account‑to‑account adoption across core eurozone markets. ([reuters.com](https://www.reuters.com/business/adyen-beats-revenue-estimates-payment-volumes-rise-2025-10-29/?utm_source=openai))

Market snapshot: demand, funding, and momentum

Payments throughput and monetization remain the region’s anchor: Adyen’s 2025 results show double‑digit net revenue growth and volumes nearing €347 billion in Q3, underscoring merchants’ shift to unified commerce and platform acquiring. ([adyen.com](https://www.adyen.com/press-and-media/adyen-publishes-q3-2025-business-update?utm_source=openai))

On the funding side, Dealroom and sector trackers report a modest recovery: European fintech investment ticked up in 2024 and remained a meaningful share of VC in 2025, with the UK still the largest hub but France and Germany gaining share. This sets the stage for selective late‑stage rounds and IPO preparation into 2026. ([finextra.com](https://www.finextra.com/newsarticle/45368/european-fintech-investment-increased-10-in-2024?utm_source=openai))

Regulatory landscape that will define 2026–2028

PSD3 + PSR: fraud, transparency, and open banking 2.0

EU lawmakers reached a political agreement in trilogues on a package that tightens online fraud protections, expands reimbursement duties, mandates stronger name‑checks, and clarifies fee transparency, while modernizing access for PISPs/AISPs and aligning treatment of e‑money and payment institutions. Final texts are expected by end‑2025, with phased application beginning 2026–2028. ([reuters.com](https://www.reuters.com/business/finance/eu-agrees-new-rules-online-fraud-protection-2025-11-27/?utm_source=openai))

FiDA (open finance): who gets the data?

The proposed Financial Data Access framework would extend data‑sharing beyond payments into savings, insurance, and investments. A key late‑2025 flashpoint is whether Big Tech should be excluded; reporting indicates EU institutions lean toward restricting their access, while fintech associations urge an ambitious, innovation‑friendly regime. ([ft.com](https://www.ft.com/content/6596876f-c831-482c-878c-78c1499ef543?utm_source=openai))

MiCA: crypto enters the mainstream rulebook

MiCA’s staged implementation continues through 2025–2026 via ESMA/EBA technical standards, bringing uniform authorization, disclosure, and market integrity requirements to EU crypto‑asset issuers and service providers, with additional significance criteria for stablecoins adopted in 2024. ([esma.europa.eu](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica?utm_source=openai))

The actors to watch

Adyen: scaling platforms and omnichannel

Adyen outperformed expectations in 2025 with 20–23% net revenue growth and expanding platform revenues, reinforcing its edge in large‑cap retail and platforms despite industry normalization. ([reuters.com](https://www.reuters.com/business/adyen-beats-revenue-estimates-payment-volumes-rise-2025-10-29/?utm_source=openai))

Wise: infrastructure plays, dual‑listing path

Wise grew revenue and customers in H1 FY26 but saw pre‑tax profit dip on higher investment and administrative costs; it has also advanced a plan for a U.S. listing while exploring a UK bank license to deepen product breadth and infrastructure access. ([financemagnates.com](https://www.financemagnates.com/fintech/wises-h1-profit-declined-due-to-a-spike-in-expenses//?utm_source=openai))

Klarna: BNPL to “everyday bank”

Klarna reported five straight quarters of operational profitability in 2025 with revenue at $823m in Q2 and continued card expansion—evidence of a pivot from pure BNPL to broader consumer finance. ([investors.klarna.com](https://investors.klarna.com/News–Events/news/news-details/2025/Klarna-grows-Q2-revenue-to-823m-reports-continued-operating-profitability-and-highest-number-of-on-time-payments-2025-APzBtW1eTl/default.aspx?utm_source=openai))

Revolut: still in the UK “mobilisation” lane

Revolut secured a UK banking authorization with restrictions in July 2024; since then, scrutiny of governance and risk controls has intensified as it seeks a full license—amplified by fresh headlines around leadership residency disclosures and bank CEOs arguing for a level regulatory playing field. ([theguardian.com](https://www.theguardian.com/business/article/2024/jul/25/revolut-receives-uk-banking-licence-after-three-year-wait?utm_source=openai))

Neobanks to note: Starling and bunq

Starling remained profitable but absorbed a 25–26% profit drop linked to an FCA fine and legacy Covid‑era loan issues—illustrating the compliance cost curve many banks face. Bunq posted a second consecutive profit year, accelerated U.S. expansion via a broker‑dealer pathway, and pushed into crypto staking—while also drawing supervisory fines in the Netherlands. ([cnbc.com](https://www.cnbc.com/2025/05/28/goldman-backed-starling-bank-profit-drops-amid-covid-loan-issue.html?utm_source=openai))

Recent news to track—and our reaction

1) Payments sovereignty and instant A2A rails

EPI’s Wero wallet crossed 40m enrolled users across Germany, France, and Belgium and is moving into ecommerce acceptance in 2025, positioning A2A as a low‑cost alternative to cards and BNPL at checkout. Expect rapid merchant adoption where instant SEPA coverage and SCA UX are strong; watch interchange‑like economics emerging via value‑added services. ([tech.eu](https://tech.eu/2025/04/24/european-payments-initiative-calls-for-unity-among-local-wallets-to-strengthen-eu-autonomy/?utm_source=openai))

2) Fraud liability shift

The PSD3/PSR deal and parallel online‑fraud protections will likely raise baseline costs for PSPs and platforms that can’t demonstrate prevention and name‑check controls. Winners will be firms with strong device intelligence, behavioral analytics, and shared fraud networks; laggards may face reimbursement liabilities and margin compression. ([reuters.com](https://www.reuters.com/business/finance/eu-agrees-new-rules-online-fraud-protection-2025-11-27/?utm_source=openai))

3) Capital markets readiness

With profitability and scale returning, late‑stage fintechs are reopening listing discussions (dual‑listed or U.S.‑primary). Wise’s financing and listing plans are a bellwether; valuations will hinge on durable margins ex‑rate tailwinds and clarity on regulatory liabilities. ([investing.com](https://www.investing.com/news/company-news/wise-financing-raises-250-million-in-5year-note-issuance-93CH-4372700?utm_source=openai))

Interview: Martina Weimert (CEO, European Payments Initiative)

A condensed Q&A built from recent public remarks and releases; quotes are drawn from those sources. ([prnewswire.com](https://www.prnewswire.com/news-releases/nuvei-joins-the-european-payments-initiative-to-launch-wero-for-ecommerce-302456384.html?utm_source=openai))

Q: What problem is Wero solving for Europe?

A: Europe wants payment sovereignty and a seamless, pan‑EU user experience. Wero rides SEPA Instant to enable 10‑second A2A transfers and unify fragmented wallets. It’s designed as a wallet “allowing us to integrate other payment means and value‑added services,” including future BNPL and loyalty—making it attractive for consumers and merchants. ([prnewswire.com](https://www.prnewswire.com/news-releases/nuvei-joins-the-european-payments-initiative-to-launch-wero-for-ecommerce-302456384.html?utm_source=openai))

Q: How fast is adoption?

A: Wero has surpassed 40 million enrolled customers across early markets, with online payments rolling out from summer 2025. That scale, plus ecommerce acceptance through PSP partners, is the inflection point for checkout use cases. ([tech.eu](https://tech.eu/2025/04/24/european-payments-initiative-calls-for-unity-among-local-wallets-to-strengthen-eu-autonomy/?utm_source=openai))

Q: What about fraud and trust?

A: The model bakes in strong fraud‑prevention; the EU’s new rules push liability and prevention upstream. Expect name‑check requirements, real‑time risk scoring, and shared data to be table stakes. ([reuters.com](https://www.reuters.com/business/finance/eu-agrees-new-rules-online-fraud-protection-2025-11-27/?utm_source=openai))

Risks and opportunities

Compliance and operating leverage

Heightened fraud reimbursement and AML obligations will test unit economics, particularly for thin‑margin neobanks and wallet providers. Firms with in‑house risk infrastructure and scale (e.g., Adyen) have a margin buffer; others may need pricing changes or partner models. ([adyen.com](https://www.adyen.com/press-and-media/adyen-publishes-q3-2025-business-update?utm_source=openai))

Open finance competition

If FiDA meaningfully opens data beyond payments, expect new orchestration layers and embedded finance in insurance, wealth, and SMB credit. If Big Tech access is curtailed, EU players could gain breathing room—though critics warn about stifling consumer choice. ([ft.com](https://www.ft.com/content/6596876f-c831-482c-878c-78c1499ef543?utm_source=openai))

Crypto under MiCA

Licensed CASPs will benefit from passporting and clearer disclosures; banks and neobanks integrating compliant crypto (staking, custody) can diversify revenue, but must strictly follow MiCA/EBA guidance to avoid supervisory action. ([esma.europa.eu](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica?utm_source=openai))

Outlook: what to do now

For merchants and marketplaces

Pilot A2A checkout where Wero or national instant schemes have coverage; negotiate PSP bundles that include fraud controls and SCA UX testing. ([prnewswire.com](https://www.prnewswire.com/news-releases/nuvei-joins-the-european-payments-initiative-to-launch-wero-for-ecommerce-302456384.html?utm_source=openai))

Model PSD3/PSR‑driven chargeback/fraud reimbursement scenarios into 2026 budgeting. ([techradar.com](https://www.techradar.com/pro/eu-clamps-down-on-online-fraud-and-hidden-fees-affecting-online-payment-platforms?utm_source=openai))

For PSPs, issuers, and wallets

Invest in alias‑based payee verification and behavioral analytics; join shared fraud‑intelligence exchanges ahead of new liability norms. ([reuters.com](https://www.reuters.com/business/finance/eu-agrees-new-rules-online-fraud-protection-2025-11-27/?utm_source=openai))

Prepare for re‑authorization and alignment of e‑money and payment institution permissions under PSD3. ([eur-lex.europa.eu](https://eur-lex.europa.eu/eli/C/2025/3724/oj/eng?utm_source=openai))

For neobanks and scale‑ups

Balance growth with compliance spend; recent actions against Starling and bunq show investor tolerance is low for AML gaps. ([fnlondon.com](https://www.fnlondon.com/articles/starling-bank-profit-slides-on-fca-fine-and-bad-covid-loans-62d22ea9?utm_source=openai))

Keep optionality on listings or strategic partnerships as rates normalize and public markets reopen selectively. ([financemagnates.com](https://www.financemagnates.com/fintech/payments/wise-eyes-wall-street-uk-fintech-plans-us-listing-after-record-year//?utm_source=openai))

Cited developments (selected)

EU fraud‑protection deal and PSD3/PSR progress. ([reuters.com](https://www.reuters.com/business/finance/eu-agrees-new-rules-online-fraud-protection-2025-11-27/?utm_source=openai))

Wero wallet expansion and PSP enablement. ([tech.eu](https://tech.eu/2025/04/24/european-payments-initiative-calls-for-unity-among-local-wallets-to-strengthen-eu-autonomy/?utm_source=openai))

Revolut’s UK licensing status and scrutiny. ([revolut.com](https://www.revolut.com/news/revolut_receives_uk_banking_licence/?utm_source=openai))

Adyen Q3 2025 update. ([adyen.com](https://www.adyen.com/press-and-media/adyen-publishes-q3-2025-business-update?utm_source=openai))

Wise H1 FY26 results and financing. ([financemagnates.com](https://www.financemagnates.com/fintech/wises-h1-profit-declined-due-to-a-spike-in-expenses//?utm_source=openai))

Starling 2025 profit drop; bunq profit, expansion, and fines. ([cnbc.com](https://www.cnbc.com/2025/05/28/goldman-backed-starling-bank-profit-drops-amid-covid-loan-issue.html?utm_source=openai))

MiCA implementation status. ([esma.europa.eu](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica?utm_source=openai))

FAQ

What is the difference between PSD3 and the PSR?

PSD3 is a directive focused on authorization/supervision of payment and e‑money institutions; the PSR is a directly applicable regulation covering conduct and consumer protections (fraud, transparency, access). Together they replace and modernize parts of PSD2. ([eur-lex.europa.eu](https://eur-lex.europa.eu/eli/C/2025/3724/oj/eng?utm_source=openai))

When will the new EU payment rules take effect?

Final adoption is targeted by end‑2025, with application phased from roughly 2026–2028 depending on provision and whether it sits in the regulation (direct) or the directive (transposed). ([eur-lex.europa.eu](https://eur-lex.europa.eu/eli/C/2025/3724/oj/eng?utm_source=openai))

What is Wero and why does it matter?

Wero is EPI’s instant A2A wallet. It aims to unify fragmented EU payments, cut merchant costs at checkout, and add services like BNPL and loyalty across markets. ([tech.eu](https://tech.eu/2025/04/24/european-payments-initiative-calls-for-unity-among-local-wallets-to-strengthen-eu-autonomy/?utm_source=openai))

Is Revolut a full UK bank yet?

Revolut holds a UK authorization with restrictions (“mobilisation” stage) granted in July 2024; a full license remains pending amid ongoing regulatory engagement. ([theguardian.com](https://www.theguardian.com/business/article/2024/jul/25/revolut-receives-uk-banking-licence-after-three-year-wait?utm_source=openai))

How is MiCA changing crypto in Europe?

MiCA harmonizes crypto rules across the EU, introducing standardized authorization, disclosures, and oversight; technical standards are rolling out through ESMA/EBA into 2026. ([esma.europa.eu](https://www.esma.europa.eu/esmas-activities/digital-finance-and-innovation/markets-crypto-assets-regulation-mica?utm_source=openai))

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