INTELLIGENT, INTERCONNECTED AND INCREASINGLY COLLABORATIVE

Key takeaways from The SUMMIT's AI and payments deep dive

FOREWORD BY TOM HEWSON, FOUNDER AND CEO, REDCOMPASS LABS

Growing up in the UK in the 1970s—an era of three TV channels—there was a show called Tomorrow’s World that aired every Thursday at 7pm. I distinctly remember the episode introducing something called a “silicon chip.” We were told it would change our lives. At around the same time, over in the US, Microsoft was starting up with the vision of “a computer on every desk and in every home.”

It sounded outlandish then. A computer in every home? Yet now, I take two when I travel for work. Change always feels slower than promised — until it’s bigger than we ever imagined.

We’re at the beginning of another shift like that, with AI. For banks, AI offers an escape from the stack of IT systems tangled in spaghetti, the friction, and costs that hold us back. But more than that, it’s changing how banking is done entirely. Autonomous payments. AI agents acting in our best interests. Financial services that predict and prevent, rather than react.

It’s already happening in payments. AI is helping banks detect fraud in real time, route payments more efficiently across rails and reduce the cost of legacy system upgrades — accelerating the modernization that many institutions have struggled to deliver for years. We live in a time of wonder. Not just with AI, but with payments in general. 

If we get this right, we could enable a new golden era in banking. Which is why, on May 8, 2025, a group of thoughtful people gathered to discuss what that might look like, and what it will take to get there.

What follows captures some of the most interesting ideas from that day. Some of them may seem far off. They might take longer than we hope. But if history is any guide, the impact will be greater than we can imagine. And when we look back, we may realize just how tame we really were.

Tom Hewson is CEO at RedCompass Labs, a leading technology, consulting, and services firm focused on payments modernization, anti-financial crime solutions, and AI-driven transformation. He is a committed advocate for the transformative potential of instant, frictionless, and real-time payments, recognizing their capacity to foster financial inclusion, empower businesses, and positively impact society.

AI AND PAYMENTS: SHAPING THE FUTURE OF FINANCIAL SERVICES

The future is here, and it's powered by AI. That was the clear message from The SUMMIT's recent AI and Payments deep dive, held in partnership with RedCompass Labs that brought together 150 leaders and innovators from across the payment ecosystem. Going beyond the 60-minute breakout panel, the session was an intensive exploration into how artificial intelligence is transforming payments and shaping the future of financial services.

The addition of deep dives at The 2025 SUMMIT provided delegates with an unparalleled opportunity to explore topics of particular interest and complexity. From C-suite executives to payment specialists, the standing-room only audience reflected the widespread interest in this critical topic. Financial institutions, fintechs and IT consulting firms were most prominently represented among attendees, eager to unpack the latest use cases and future implications of AI in payments.

The dawn of agentic AI and robot-to-robot payments

Headline speakers David Birch, Principal at 15Mb Ltd., and Debbie Gamble, Chief Strategy and Marketing Officer at Interac Corp., painted a vivid picture of an emerging frontier. They highlighted the intersection of traditional machine-to-machine payments with the rapidly evolving world of AI, leading to the rise of Agentic AI. These intelligent agents are capable of making their own decisions and even their own payments, paving the way for robot-to-robot (R2R) payments.

David emphasized the importance of the smart/digital wallet, which can be operated by a robot, simplifying many buying decisions for consumers.

This revolutionary shift will necessitate new payment infrastructure and open up opportunities for fintechs to innovate with new products and services. However, the discussion also underscored the critical need to consider the ethics and governance required for this new era.

David Birch, Principal, 15 Mb Ltd. fields questions from the audience at the AI and payments deep dive.

Practical applications from the front lines

Joe Greenwood, Vice-President, AI and Data Growth Office at Mastercard, provided concrete examples of applied AI in payments, moving beyond the conceptual to real-world applications. He showcased how AI is driving smarter, safer and more personalized payment experiences, accelerating the transformation of the ecosystem.

Key use cases presented included:

• AI-powered threat and identity protection: enhancing security measures to safeguard transactions and personal data.

• GenAI for hyper-personalization: scaling personalization capabilities to deliver tailored consumer experiences, from shopping and checkout to payment optimization.

• Enriching transaction data: leveraging AI to deliver insights that enhance financial management for consumers, issuers, acquirers and merchants.

• Streamlining dispute prevention and resolution: improving efficiency and reducing friction in handling payment disputes.

Forward-thinking discussions

An Ask Me Anything session with David Birch further elaborated on the future of financial services, customer experience and the role of AI, particularly in ID verification. A key takeaway from David: financial institutions will need to focus not just on what they will do with AI, but what consumers will do with AI.

Data collaboration: powering AI-driven innovation

The final session of the deep dive, a panel featuring experts from Google Cloud, Royal Bank of Canada, Rhino Federated Computing and Swift, delved into how emerging technologies are unlocking a new era of data collaboration.

The consensus was clear: data collaboration is at the heart of powerful AI. Significant breakthroughs in AI won't come from institutions working in isolation, but from organizations finding ways to work together.

AUDIENCE INSIGHTS: WHO ATTENDED THE AI AND PAYMENT DEEP DIVE

Significant breakthroughs in AI won't come from institutions working in isolation, but from organizations finding ways to work together. This collaborative approach can unlock entirely new possibilities for AI to transform payments that are otherwise unachievable.

Examples included:

• Canada's Anti-Scam Alliance: A move towards data collaboration specifically in the fraud space.

• Swift's Data Collaboration for Fraud (DCF) initiative: Leveraging privacy-enhancing technologies for use cases like Mule Account Sharing (MAS) and Fraud Label Sharing (FLS) to combat financial crime collaboratively while protecting sensitive data.

Johan Bryssinck from Swift highlighted the nascent maturity of privacy-enhancing technologies and AI, enabling the sharing of insights and risk signals to collectively fight economic crime without revealing input data. He emphasized that "collective action is paramount" to overcome the growing fragmentation in the payment ecosystem.

Chris Laws from Rhino Federated Computing underscored the "tremendous upside of collaborative AI for the Canadian payment ecosystem," from stronger fraud detection to smoother customer experiences. He stressed that with responsible collaboration, Canadian financial institutions can lead in shaping a smarter, safer future.

Looking ahead

The AI and Payments deep dive gave a comprehensive look at the transformative power of artificial intelligence in the payments industry. From the rise of agentic AI and robot-to-robot payments to the critical importance of data collaboration in fighting financial crime, the insights shared will undoubtedly shape the strategies of businesses across the ecosystem. The future of payments is intelligent, interconnected and increasingly collaborative.

The SUMMIT would like to thank RedCompass Labs for their partnership on the AI and payments deep dive. A special thanks to Tom Hewson for his expert moderation and leadership chairing the session.