The payments industry is poised for a transformative 2025, where innovation, inclusion and security will take centre stage. From the rapid rise of AI to the continued push towards digitisation.
In 2025, key advancements like multi-rail payment ecosystems, frictionless biometric transactions and preparations for a quantum-powered future, will redefine how we pay, transact and protect ourselves in a digital-first world. As competition intensifies and profitability becomes paramount, the challenge for financial institutions will be to balance growth with adaptability.
Below, hear from our experts as they share the trends and strategies set to shape the payments industry in 2025.
According to Jeff Parker, CEO of Paymentology, the global shift toward cashless economies is accelerating, driven by advancements in digital payment solutions. With mobile wallets expected to reach 4.8 billion users, nearly 60% of the global population, by 2025, digitisation is creating faster, cheaper and more accessible payment systems.
“Cross-border and real-time payments will thrive as businesses embrace digital solutions,” Parker explains. “This not only fuels ecommerce growth but also creates opportunities for financial inclusion, especially for the 1.4 billion unbanked individuals globally. Companies that prioritise user experience will lead this charge, setting new standards for innovation.”
In a competitive market, profitability has become a key focus for digital banks and fintechs. Anna Porra, Chief Revenue Officer, points to the growing trend of targeted solutions designed to drive revenue while managing costs.
“As we’ve seen with Wio in the Middle East, digital banks can achieve profitability within their first year by narrowing their focus and delivering impact,” she says. “This approach will dominate the industry in 2025, with providers tailoring their offerings to specific customer needs and scaling effectively.”
The integration of AI into daily operations is set to reshape the financial industry. Angy Watson, Chief People and Transformation Officer, anticipates that AI agents will take centre stage, shifting human roles from execution to strategy.
“AI agents capable of handling complex tasks will become common, streamlining workflows and accelerating decision-making,” Watson notes. “This evolution will push businesses to upskill their workforce, fostering adaptability and collaboration between humans and machines. It’s a partnership that will define the future workplace.”
AI will also dramatically improve customer interactions, particularly in banking. Nauman Hassan, Regional Director for MENA, predicts that hyper-personalised experiences powered by AI will dominate the Middle East. “AI will enable banks to predict and meet customer needs in real-time, while also transforming fraud detection and compliance processes,” he explains.
As digital payments grow, so do concerns about security. Stephen Bowe, Chief Product Officer, highlights the critical role of tokenization and AI in combating fraud.
“Prevention will become the priority,” Bowe says. “By removing sensitive data from transactions and leveraging AI to detect threats in real-time, we can build trust and confidence in digital payments, paving the way for a safer ecosystem.”
Looking even further ahead, Tim Joslyn, Chief Technology Officer, warns of the implications of quantum computing. “The rise of quantum technologies poses a real threat to current cryptographic protections,” he says. “2025 is the time to act, investing in quantum-resistant algorithms to ensure the long-term security of payment systems.”
Merusha Naidu, Global Head of Partnerships, sees the continued growth of multi-rail payment systems as a game-changer for global commerce. “Global cashless payment volumes are projected to increase by more than 80% between 2020 and 2025, from about 1 trillion transactions to almost 1.9 trillion, and to almost triple by 2030. Within the multi-rail payments ecosystem, real-time payments (RTP) could reach $193.1 billion by 2030.” By integrating cards, digital wallets, BNPL services and real-time payments, issuers can provide a personalised experience that caters to diverse customer needs.
“This approach unlocks new opportunities for issuers to expand their reach and meet the demands of a cashless world,” Naidu explains.
In Africa, digital wallets are playing a crucial role in bridging the financial inclusion gap. Kirsten Wortmann, Regional Director, highlights how solutions like M-PESA are empowering the unbanked population. “Mobile wallets are simplifying payments and expanding access to financial services, driving economic growth and empowerment across the continent,” she says.
Meanwhile, in Latin America, Alejandro Del Rio, Regional Director, predicts continued growth in cross-border payments. “Consumer demand for faster, more secure solutions is reshaping the remittance market,” he says. “AI-driven fraud prevention and technological innovations are key to building trust and sustaining growth.”
In Europe, Martin Heraghty, Regional Director, points to the rise of digital-only banking spin-offs as a defining trend. These ventures enable traditional banks to expand their reach, target niche markets and experiment with new technologies, all while keeping operational costs low.
“These spin-offs allow financial institutions to stay competitive and create new growth opportunities,” Heraghty explains. “They represent a blend of innovation and strategic adaptability.”
On a broader scale, Drisha Kirkman, Global Head of Programme Management and Sustainability, sees 2025 as a year for fostering inclusion through low-cost digital solutions. “Technological advancements and regulatory pushes are driving the shift to cashless economies,” Kirkman says. “By offering scalable, sustainable products, we can empower underserved communities and bridge the gaps left by traditional banking.”
Interested in learning more about the relationship between technology and banking? Check out our article on How AI in Banking is Reshaping Security in Payments.
Paymentology is the leading next-generation issuer processor, empowering fintechs, digital banks and retail banks to effortlessly launch and manage innovative payment solutions on a global scale. The company drives greater customer choice and value through easy-to-use, integrated platforms and services that help clients to disrupt the status quo, accelerate time to market, and achieve growth.
With a superior multi-cloud platform offering a vast global footprint, and enhanced real-time data, Paymentology distinguishes itself as a leader in the payments industry. Its team of payments experts, with deep local market knowledge, operates across 60 countries and 14 time zones, providing 24/7 support. Paymentology is deeply committed to expanding financial inclusion globally, changing lives and positively impacting the communities in which it operates.