2025 payment trends focus on digital wallets, instant payments, AI, fraud prevention, and consumer convenience, driven by evolving regulations and innovation.
As the payments landscape evolves, businesses face increasing pressure to adapt to technological advancements and changing consumer expectations. What was once cutting-edge has quickly become standard, and the pace of innovation shows no signs of slowing. The question for 2025 is not whether businesses will embrace change but how effectively they will navigate this transformation to remain competitive.
A shared priority lies at the core of these developments: delivering seamless, secure, and efficient payment experiences. The coming year presents challenges and opportunities for merchants and payment providers, from new technologies to shifting regulations. To gain insight into the trends shaping the future, we surveyed industry professionals and merchants. Here are five key areas to watch closely in the year ahead.
More than four in five (82%) respondents flagged this as a major trend shaping the payments industry.
There are a plethora of digital wallets for consumers to choose from in each market, and new alternative payment methods (APMs) are being introduced frequently. We’re also seeing more moves towards interoperability, such as Wero, the pan-European wallet introduced by the European Payments Initiative (EPI), now expanding its footprint across the continent.
70% of respondents cited this as a key area of impact for the year ahead. Instant payments are gaining momentum in a modern world where immediacy is everything; businesses and consumers demand speed without compromise. Developments in open banking, particularly considering A2A payments, enable this and enhance the entire experience of doing so seamlessly and without friction.
Artificial Intelligence (AI) offers numerous potential payment advantages, especially when automating critical tasks such as fraud detection and identity verification. Two-thirds (66%) of respondents consider AI a significant driver of change in the coming year.
However, firms must avoid jumping on the bandwagon. It’s crucial to carefully evaluate the return on investment of AI projects rather than simply chasing shiny new toys. Smart, well-considered AI applications can deliver value—but only when aligned with clear business goals.
Fraud continues to rise, and the fraudsters develop more sophisticated attacks. Authorised Push Payment (APP) fraud, where a fraudster convinces a payer to authorise a payment under false pretences, is a particular problem, with projected losses expected to grow exponentially in the coming years. Unsurprisingly, 66% of respondents believe fraud prevention strategies must be a critical focus area for merchants and other businesses in 2025.
Six in ten (60%) respondents to our survey view consumer demand for greater convenience as the main factor driving innovation in 2025. This highlights a universal truth: consumers now expect payments to be faster, more seamless, and more intuitive. Meeting these expectations isn’t just about keeping pace—creating standout experiences that foster loyalty and trust.
It’s also important to highlight regulatory changes noted by 50% of respondents as both a driver of innovation and a challenge to overcome.
Shifting regulations—whether PSD3 compliance, measures to tackle APP fraud, or the EU AI Act that seeks to mitigate risks associated with the new technology—are pushing merchants and other businesses to rethink their strategies. While such shifts are often viewed as obstacles, they should instead be considered powerful catalysts for innovation, requiring businesses to refine their systems, build trust and deliver better consumer outcomes.
At the heart of these trends is the need for a deliberate approach to innovation that balances consumer expectations with sustainable, meaningful progress. As we enter the new year, a more adaptive, forward-thinking approach to payments will ensure that merchants and other organisations thrive in this era of change.
Read more about payabl.
The Payments Association
St Clement’s House
27 Clements Lane
London EC4N 7AE
© Copyright 2024 The Payments Association. All Rights Reserved. The Payments Association is the trading name of Emerging Payments Ventures Limited.
Emerging Ventures Limited t/a The Payments Association; Registered in England and Wales, Company Number 06672728; VAT no. 938829859; Registered office address St. Clement’s House, 27 Clements Lane, London, England, EC4N 7AE.
Log in to access complimentary passes or discounts and access exclusive content as part of your membership. An auto-login link will be sent directly to your email.
We use an auto-login link to ensure optimum security for your members hub. Simply enter your professional work e-mail address into the input area and you’ll receive a link to directly access your account.
Instead of using passwords, we e-mail you a link to log in to the site. This allows us to automatically verify you and apply member benefits based on your e-mail domain name.
Please click the button below which relates to the issue you’re having.
Sometimes our e-mails end up in spam. Make sure to check your spam folder for e-mails from The Payments Association
Most modern e-mail clients now separate e-mails into different tabs. For example, Outlook has an “Other” tab, and Gmail has tabs for different types of e-mails, such as promotional.
For security reasons the link will expire after 60 minutes. Try submitting the login form again and wait a few seconds for the e-mail to arrive.
The link will only work one time – once it’s been clicked, the link won’t log you in again. Instead, you’ll need to go back to the login screen and generate a new link.
Make sure you’re clicking the link on the most recent e-mail that’s been sent to you. We recommend deleting the e-mail once you’ve clicked the link.
Some security systems will automatically click on links in e-mails to check for phishing, malware, viruses and other malicious threats. If these have been clicked, it won’t work when you try to click on the link.
For security reasons, e-mail address changes can only be complete by your Member Engagement Manager. Please contact the team directly for further help.
