8 Essential Payment Trends for 2025
New and emerging payment trends are already taking shape. 2024 has been a very exciting year for e-commerce and the payment industry as a whole. However, now as we move into 2025, the payments industry and merchants must look ahead..
To meet the newly-emerging expectations of customers, and stay ahead of the competition in tomorrow’s market, it’s essential for brands, providers, and merchants to anticipate and respond to some of the biggest innovations we see transforming the payment sector next year.
So, what kind of new regulations, ideas or technology will arrive in the next year, and what kind of solutions will gain greater prominence? This article aims to examine some of the most exciting new payment trends on the horizon for 2025, along with Brite Payments’ expert opinion and analysis of what brands who rely on these payment solutions can do to capitalise on our predictions. Read on to learn more.
1. Continued Pay by Bank growth – the essential payment trend?
First of all, we predict that Pay by Bank (as a checkout option) and account-to-account (or ‘A2A’) payments (as a payment method) both have the potential to become even more lucrative for e-commerce merchants who choose to adopt them in 2025.
Why is this? We know the desire for A2A payments is a generational trend driven primarily by younger demographics. Gen Z buyers, who are the most receptive to online shopping and e-commerce, are clamouring for more sustainable payment options without the burden of taking on credit with high interest rates.
That said, A2A payments, which are instant and involve no credit, are likely to grow in the coming years and become a higher priority for buyers. Merchants should, therefore, make efforts to accommodate them on their payment platforms. Indeed, merchants who don’t add these options to their checkout risk losing their customers, or even having their customers choose a more expensive payment method from someone else.
A2A payments may also help brands offer loyalty incentives to customers, without costing them profits. Merchants could potentially use A2A to attract new customers by offering them discounts based on the operational savings they make. Merchants can still save a few percentage points in fees compared to what they would pay for a wallet or a Buy Now, Pay Later (BNPL) provider — allowing them to offer this value to new customers as an incentive.
2. New legislation
Instant payments are also likely to become more prevalent next year in the wake of a slew of new regulations due to be introduced worldwide in countries such as Brazil, the U.S., Poland, and other nations.
This new demand for instant payments stems from new legislation, pushing customers in the nations that have introduced it towards more sustainable payment methods. In addition to this, there have also been a swathe of new policies aimed at helping merchants and brands add instant payments to their checkout, along with governmental incentives to motivate their adoption.
For example, in the United States, the Consumer Financial Protection Bureau has recently implemented Section 1033 of the Consumer Financial Protection Act, which is designed to safeguard app users’ personal bank account information. In short, data providers need to make personal financial data available at consumers’ discretion through reliable, secure digital interfaces. These directives will obviously impact payment providers and merchants operating in the United States.
Meanwhile, in Europe, brands will have to reckon with Payment Services Directive 3 (PSD3) — aimed at protecting the rights and private data of payment service users. PSD3 is due to establish Strong Customer Authentication (SCA) regulations and stricter rules on access to payment systems and account information.
The Sixth Anti-Money Laundering Directive will also introduce further checks and balances to payment processors in a bid to guard against fraud and cybercrime. IPR is another example of new European payment legislation likely to have a significant social impact in 2025; now, more and more banks will be required to offer cost-free instant payments to consumers.
On paper, it might all sound very overwhelming. But, these new rules and regulations aren’t designed to hamstring business, and merchants shouldn’t automatically view them as impositions. Instead, they should be seen as fresh opportunities, and merchants should invest in instant payment options now. After all, by 2025, many more businesses will reap the benefit of regulatory support to provide these options, so it will pay in the long-term to join in.
3. AI-driven payment trends
Artificial intelligence (AI) and machine learning (ML) are likely to become even more integrated into existing payment processing technology in 2025. Indeed, one report has predicted that investment in AI-powered fintech companies will rise from $60.4 billion in 2023 to $65.5 billion in 2025, as this technology becomes more ubiquitous for brands and merchants alike.
But what are some of the applications of AI in payment processing? For one, sophisticated new AI tech can be used to combat fraud and plug gaps in cybersecurity. AI-powered algorithms can analyse large volumes of transaction data in real-time to identify suspicious transactions that could prove to be fraudulent.
In addition to all this, AI also boasts applications in payment processing for risk management, identity verification, and transaction monitoring, improving security and reducing false positives — meaning that the tech can potentially generate optimised services across the board.
4. Instant payments
We believe another payment trend is that instant payments, enabled by a global push towards open banking and Pay by Bank, will become more prevalent in 2025. One reason for this is the implementation of the Instant Payment Regulation (IPR). As previously mentioned, this enforces cost-effective bank transfers, much to the benefit of merchants and customers.
Younger consumers want the instant gratification of instant payments, particularly when these purchases are driven by fads and fashions disseminated on social media. However, younger people are more wary of credit cards and the interest rates associated with them.
With this in mind, it’s highly likely that solutions such as Pay by Bank will gain a share of checkouts for ecommerce stores in the next year.
5. “Super apps” and embedded finance
Although the West is unlikely to adopt government-backed super apps anytime soon (unlike the all-encompassing WeChat in China), super apps do have the potential to gain more traction in the market throughout 2025.
We foresee multiple pathways to super app functionality in North America, Europe, and elsewhere as more platforms consolidate their services and the companies that provide digital services merge.
For example, the Klarna app, which aims to consolidate users’ shopping experience and make it easier to compare prices and rates across multiple regions, platforms, and marketplaces, has the potential to become a super-app on par with East Asian apps. In Klarna, users can do price comparisons, manage BNPL options, access cashback, use credit cards, manage bank accounts, and even their savings.
Furthermore, we see apps such as Revolut and Trade Republic broadening their offerings — taking an omnichannel approach to payment processing next year.
6. Customer experience within payments – the secret payment trend?
With more and more purchases being made across a variety of online platforms and more payment options being catered to, customers in 2025 are more likely to be overwhelmed and want to find a brand that they can trust for the majority of their transactions.
This is why brands will have to work harder than ever to establish positive, long-term brand loyalty through exceptional customer experiences in 2025. We predict that a key payment trend will be payment providers and merchants having to work harder than ever before to improve their payment experience and meet the high expectations of new consumers looking for instant and seamless payments.
In the words of Mannfred Schulz, Head of Merchant Solutions at Brite Payments, “The user experience has to be superb. If something breaks along the payment journey, trust can be lost. […] And if customers consistently have a great experience, they’ll trust the brand and continue using it, as they know it’s reliable across all their shopping destinations.
He adds: “This, in turn, benefits merchants as well. They won’t lose customers due to a broken or unreliable payment process, which they don’t control; they can rely on us as their payment provider to take care of their customers in the best possible way.”
7. Cryptocurrency payment trends and developments
Cryptocurrency is set to become a more common method of e-commerce payment, and merchants might want to consider integrating it into their stores to attract crypto-focused customers. However, despite the growing demand for crypto payments, the volatility of the market has made many payment providers anxious about exploring this avenue.
With this in mind, merchants who might want to integrate cryptocurrencies into their checkout should ensure that they look into stablecoins — which are pegged to fiat currencies and are, therefore, less risky than other cryptocurrencies. For example, the payments giant Stripe has recently acquired the fintech startup Bridge, which specialises in moving money across accounts using cryptocurrencies like Circle’s USDC and Tether’s USDT.
Furthermore, blockchain-based payment platforms also have the potential to reduce merchant fees while enhancing the efficiency of cross-border payments.
8. Home assistants and voice-activated payment trends
Another payment trend to watch is the rise of smart devices and home assistants such as Amazon Echo, Cortana, and Alexa means that voice-activated payments will soon become more prominent methods of payment in the next year.
Indeed, this new technology is a great way for merchants and payment providers to tap into new markets by enabling better payment options for the disabled community — where motor or sensory impairments might make conventional payment methods a struggle for those looking to complete everyday transactions.
However, this welcome advancement in accessibility also comes loaded with its own unique security vulnerabilities, which may spark concerns for users’ privacy and the safety of their personal data. Providers looking to integrate this payment method will, therefore, have to go to great lengths to ensure their users are protected from fraud and exploitation.
Conclusion
2025 is sure to be a time of change and innovation for all stakeholders in the payments sector — and with this in mind, it pays to take the initiative and be aware of the ever-shifting landscape.
Here at Brite, we’re constantly sharing insights on the latest payment trends and the global payments industry as a whole. So, if you want to learn more about the future, visit the resources page today!
