What to Expect from the Payments Landscape in 2025 & Beyond?

We live in an age when technology evolves at an unprecedented pace, accompanied by impactful global events and dramatically shifting consumer preferences. Such dynamics make merchants, financial institutions, PSPs, and industry experts ponder what the payments landscape will look like in the years to come.

This overview uncovers the main trends that are expected to be shaping the future of payment ecosystems around the world and gives a data-driven forecast of what we can expect from financial transactions in 2025 and beyond - read ahead to get all the insights!

5 Key Macrotrends Determining the Future of Payments

Building a long-term strategy is essential for efficient and secure payment processing. Below, you’ll find detailed information on the biggest trends that will be influencing the payments landscape in the foreseeable future, which you can implement to make informed business decisions:

1. Cross-Border Payments

International trade has gained traction over the past years and continues its upward trend. In 2020, even with the COVID-19 pandemic in full force, cross-border e-commerce transactions increased by 17% compared to the previous year¹.

Cross-border payments are clearly a trend that is here to stay, so we are sure to see companies continue to invest a lot of resources into making international transactions as fast, frictionless, and convenient as possible in the upcoming years.

2. Advanced Cybersecurity

With the number of online payment threats increasing at such a disturbing pace, merchants and other entities processing transactions must stay alert at all times, use up-to-date FinTech solutions to counter cybercrime, and develop clever anti-fraud tactics.

A recent survey conducted by PWC lists the key factors that will be shaping the cybersecurity strategies for companies over the next five years, based on the percentage of respondents that named them. The top aspects are:

1. 46% - Cybersecurity and data privacy regulations
2. 45% - Growing complexity of online fraud
3. 35% - Shortage of cybersecurity specialists
4. 35% - Increasing public concern regarding data privacy
5. 32% - Human faults (unintentional or malicious)

The importance of a thought-out and holistic cybersecurity strategy cannot be overstated, so we are sure to see established and emerging enterprises develop advanced solutions to address online payment fraud in 2025 and beyond.

3. Financial Inclusion

This approach aims to deliver reliable and sustainable banking and financial services to every individual, regardless of income and social status.

The need for financial inclusion is rooted in the large share of the unbanked population across the globe. Think about it: in 2017, only 69% of the global adult population had a bank account. In 2021, this figure reached 76%⁵, which is a great improvement, yet nearly one-fourth of the world’s population remains cut off from standard banking services.

The advances in FinTech, payment digitalization, and smartphone adoption make financial inclusion easier to attain. However, it remains a long-term project that will continue to be a major focal point in the foreseeable future.

4. Evolving Regulations

The variety of emerging payment platforms and solutions calls for regulatory adjustments. Some of the main driving forces in this aspect are:

• Digital currencies - the majority of digital assets are currently decentralized, yet the authorities across the globe are gradually introducing initiatives aiming to regulate their use.
• Cashless economies - as more and more countries realize the potential of going 100% cash-free, the need for new local and international regulations arises.
• Payment fraud - as mentioned earlier, cybercrime is never in a dormant state. Due to this, security standards have to be updated continuously.

All in all, the development of payment regulations is one of the most critical factors determining the future of the global payments landscape.

5. Frictionless User Experience

Majorly due to the digitalization boom triggered by the pandemic, modern consumers expect to access a wide variety of online services at their fingertips. What’s more, apps and websites have to function in a fast and frictionless way to meet users’ demands.

These tendencies explain the rapidly increasing popularity of digital wallets. In North America alone, the e-wallet industry is forecasted to generate around $150 billion in revenue by 2027, demonstrating a compound annual growth rate of 20%⁶.

Similar growth can be noticed in the global super apps market. Applications that combine multiple functionalities enhance user experience and cater to users who live in a fast-paced environment.

How to Keep in Step With the Payments’ Evolution?

As you can see, there are a lot of changes in the payments landscape to be expected and plenty of trends to keep up with. But how to ensure that you are not missing out on any important nuances?

Payneteasy is here to relieve you from the need to juggle multiple payment-related tasks and give you the freedom to focus on other business priorities. Our custom solutions follow all the latest regulations, boast advanced security features, and are sure to exceed your customers’ expectations.

We are always in the know of the upcoming industry shifts and guarantee top-notch service at all times, from integration to maintenance. Reach out to us already today to avail of a payment solution that will bring you impressive short- and long-term results!

¹ - EY - How new entrants are redefining cross-border payments
² - McKinsey - 2021 Global Payments Report
³ - Bank of England - Cross-border payments
⁴ - Cybercrime Magazine - Top 6 Cybersecurity Predictions And Statistics For 2021 To 2025
⁵ - The World Bank - The Global Findex Database 2021
⁶ - Global Market Insights - Mobile Wallet Market