Coast, cash VAT and AI payments: 5 news stories of the week

Coast, a New York startup, has raised $35m for a payments platform aimed at the physical economy, according to Finextra. The week also brings debate on agentic AI and instant payments, a possible 21% VAT on renovations paid in cash in Spain, a change of criterion by the TEAC and the European Central Bank's consumer survey.

Coast raises $35m for physical economy payments

Finextra reports that New York-based Coast has raised $35m to launch a payments platform for companies working in the physical economy. The standfirst does not say which sectors that term covers or what products it will offer, so it is best not to read more into the Coast funding round report than it says.

Why it matters: it shows investors still backing payments built for specific sectors, although the material mentions no plans for Europe.

Euro Banking Association: agentic AI and European payment fragmentation

At Sibos 2026, the Euro Banking Association set out how banks can resist the disintermediation posed by agentic AI and reduce fragmentation in European payments. The Finextra video on agentic AI also looks at how these agents could reshape bank brands and customer loyalty, but its summary gives no specific measures. Note that the Euro Banking Association is not the European Banking Authority, despite sharing the acronym.

Why it matters: if agents start buying on users' behalf, checkouts will need to recognise them, and fragmentation ties in with friction in cross-border payments.

Spanish renovation VAT: cash payment could mean a 21% rate

Pymes y Autónomos explains that, under Royal Decree-law 29/2026, from 1 December 2026 taking cash for a home renovation would rule out the reduced 10% VAT rate, even if all other requirements are met. The change would also extend the reduced rate to renovations of properties let as habitual residences. The outlet uses conditional wording, so read the report on VAT and cash and check with a tax adviser.

Why it matters: the payment method would start to affect the tax due, giving more weight to offering alternatives to cash in this sector.

TEAC: Spanish tax refunds withheld over court-ordered seizures

According to Pymes y Autónomos, a self-employed worker with an approved tax refund may not receive it if a court seizure order requires it to go towards a debt. Until now, appealing the Spanish Tax Agency's notice of that withholding ran into an administrative hurdle; the Central Economic-Administrative Court (TEAC) has changed its criterion and now allows it to be challenged. The standfirst is cut short, so check the exact scope in the TEAC criterion on refunds and with a professional.

Why it matters: an approved refund is not guaranteed cash when planning working capital.

European Central Bank: September Consumer Expectations Survey

The European Central Bank published the results of its Consumer Expectations Survey for September 2026 on 23 October. The material includes only the headline, with no figures, so we do not summarise results; they are in the ECB press release.

Why it matters: it helps track how euro area households see the economy, and is best read at the source.

Frequently asked questions

Does taking cash for a renovation in Spain raise VAT to 21%?

Taking cash for a home renovation in Spain could rule out the reduced 10% VAT rate from 1 December 2026, according to Pymes y Autónomos on Royal Decree-law 29/2026. The rate would rise to 21% even if all other requirements are met. It is worth confirming with a tax adviser.

Can you appeal when the Spanish Tax Agency withholds a refund over a seizure?

Appealing the withholding of a Spanish tax refund over a court-ordered seizure is possible after a change of criterion by the Central Economic-Administrative Court, according to Pymes y Autónomos. The TEAC recognises that taxpayers can challenge the decision to apply that refund to the debt. The details are worth reviewing with a professional.

What does the Euro Banking Association propose on agentic AI and instant payments?

The Euro Banking Association set out at Sibos 2026 ways in which banks can resist disintermediation by agentic AI and reduce fragmentation in European payments, according to Finextra. The video summary gives no specific measures, but points to effects on bank brands and customer loyalty.

What to watch next week

• Whether Royal Decree-law 29/2026 keeps the wording described before 1 December.
• The ECB survey data, the scope of the TEAC criterion and more detail on Coast's product; we will follow them in our payments news and updates.