The payments landscape in 2025 is set to undergo significant transformation, driven by rapid technological advancements, regulatory changes, and shifting consumer expectations. The emerging trends listed below, supported by comprehensive data and market insights, highlight a dynamic shift toward a more secure, efficient, and inclusive financial ecosystem.
The Expansion of Buy Now, Pay Later (BNPL): Buy Now, Pay Later (BNPL) services are set to continue their strong growth in 2025, with younger generations driving much of the demand. Gen Z, in particular, is the most significant adopter of BNPL, with adoption rates expected to rise from 36.8% in 2021 to 47.4% by 2025 according to EMARKTER. This trend highlights a shift in consumer spending habits, where convenience and flexibility in payment options are becoming increasingly important. BNPL services, which allow consumers to split purchases into smaller, manageable instalments, are gaining traction as a preferred method of payment, especially among younger shoppers who seek greater control over their finances.
Central Bank Digital Currencies (CBDCs) Take Center Stage: CBDCs are set to reshape the global payment landscape. With pilot programs already underway in countries like China, the U.S., and the European Union. A key development will be SWIFT’s global platform, which will enable financial institutions to conduct pilot transactions for digital assets and currencies, allowing seamless exchanges across both traditional and emerging currencies. This move is expected to improve payment efficiency, reduce transaction costs, and potentially transform cross-border transactions, further integrating CBDCs into the global financial system.
Biometric Authentication for Payment Security: In 2025, biometric authentication is set to become a standard feature in mobile wallets, banking apps, and payment gateways. The S&S Insider report highlights that the Biometric Payment Market was valued at USD 8.6 billion in 2023 and is expected to grow to USD 34.8 billion by 2032, with a CAGR of 16.84% from 2024 to 2032. As this market expands, biometric solutions like fingerprint scanning, facial recognition, and voice verification will enhance security, streamline payment processes, and reduce fraud, offering a more secure and convenient experience for consumers.
Embedded Payments: A Seamless Future: Embedded payments are revolutionising the way consumers interact with digital platforms. In 2025, we can expect this trend to expand across industries like e-commerce, transportation, and healthcare, with companies integrating payment solutions directly into their apps. The global embedded finance market, valued at USD 84.12 billion in 2023 and projected to reach USD 1,436.17 billion by 2033, is growing at a CAGR of 32.81%. This shift will eliminate the need for users to leave the platform to complete transactions, creating smoother and more convenient customer experiences. Embedded payments also offer businesses new revenue streams and greater customer engagement.
The Ongoing Rise of Contactless Payments: Contactless payments will remain a dominant force in 2025. With the popularity of NFC and QR codes, consumers have embraced the ease of tap-to-pay transactions. In the U.S., a recent Mastercard poll revealed that over half of Americans prefer contactless payment options at checkout, with 65% of adults using a digital wallet at least once in July 2024. These payments are expected to expand beyond retail into public transportation, healthcare, and hospitality, where speed and convenience are crucial. As governments and businesses continue to invest in contactless infrastructure, we can expect higher transaction limits and broader acceptance across industries.
Stablecoins Gain Momentum: While cryptocurrencies like Bitcoin and Ethereum have garnered attention, stablecoins—cryptocurrencies pegged to stable assets like the US dollar—are poised to become the go-to digital payment method in 2025. Their stability, combined with the speed and low cost of cryptocurrency transactions, will make stablecoins a preferred choice for e-commerce, remittances, and cross-border payments. In 2024, stablecoin transactions reached around $17 trillion, with payments accounting for $5 trillion, which is more than a third of Visa's total transaction volume. As regulatory frameworks for digital assets are clarified, stablecoin payments are predicted to surpass $8 trillion in 2025, cementing their place as a core global payment rail and playing a significant role in mainstream finance.
AI and Machine Learning in Fraud Prevention: As digital payments continue to grow, so does the risk of fraud, with online payment fraud projected to exceed $362 billion by 2028, according to Juniper Research. In 2025, AI and machine learning will become integral tools for detecting and preventing fraud in real-time. These technologies will analyse transaction patterns to identify suspicious activity, enhancing security for both businesses and consumers. AI-powered systems will also reduce false positives, streamlining the payment experience for legitimate users while strengthening protection against increasingly sophisticated fraud schemes.
As these technologies continue to evolve, they promise to enhance the overall payment experience, making it more convenient and accessible for consumers globally.
Learn more on these groundbreaking developments from top-tier industry leaders at the 15th NextGen Payments & RegTech Forum on 10-11 December 2024 at the Hyatt Regency in Austin, Texas, USA.
Connect with over 250 global industry leaders and experts who are driving the next wave of innovation representing world-leading organisations such as the Office of the Comptroller of the Currency, Federal Deposit Insurance Corporation (FDIC),Financial Technology Association, Payall Payment Systems, Inc., SEON, PayPal, Citi, Wise,Binance.US, Amazon, eBay, Starbucks, Morgan Stanley, BNY, J.P. Morgan, PNC, Silicon Valley Bank, USAA, IHG Hotels & Resorts, Reach, Amplify Credit Union, SumUp, Gusto, Financial Data Exchange, Independent Bankers Association of Texas, Finov8r, SWIVEL, EMARKETER, Airwallex, American Bankers Association, Klarna, Dow Jones and many more who are at the forefront of the payments and regulatory developments!
This is your chance to connect with experts and peers, share ideas, and explore the latest trends in the payments and RegTech industry. Register now to enjoy a 10% discount before it expires! Contact us at info@qubevents.com to claim the discount.
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