Rising Compliance Costs Squeeze Payments Firms

Payments firms and fintechs must fund AML/CFT controls, customer verification, sanctions screening, transaction monitoring and regulatory reporting across multiple jurisdictions. Much of that spending is fixed, leaving smaller or fast-growing companies with a disproportionate burden and less capital for products and expansion. Vixio said on Jan. 23, 2025 that 55% of 127 payments organizations surveyed reported overwhelmed compliance teams at least monthly, while 59% expected the burden to increase during the year.

The U.S. Financial Crimes Enforcement Network, or FinCEN, opened a survey of non-bank AML/CFT compliance costs on Sept. 29, 2025, with comments due Dec. 1. A joint November survey submitted that day by the Coalition for Financial Ecosystem Standards and American Fintech Council found nearly 40% of respondents spent more than $1 million annually on compliance personnel. More than half reported technology and vendor costs of at least $1 million, several exceeded $2.5 million, and 75% identified transaction monitoring as their largest compliance expense.