Over the past few years, payments have transformed from traditional systems to advanced systems fuelled by changing consumer needs and Artificial Intelligence (AI) development.
With technology still developing, individuals and businesses are raising expectations for secure, effortless, and user-friendly payment experiences.
According to Mastercard, here are ten key trends that will shape payment in 2025.
1. Tokenisation
Tokenisation technology can enable consumers to share their shopping habits and preferences with merchants on digital platforms to access more relevant offers and discounts without revealing their personal data. And the tokenisation of assets through blockchain technology can digitise and optimise any economic activity, from capital markets to trade finance to exchanging a land title or a carbon credit.
2. Blockchain technology
According to Mastercard, the maturation of blockchain and digital assets in recent years has proved that the technology has transformative potential to enhance global finance and commerce systems.
Cryptocurrencies, stablecoins, and tokenised assets have moved from concept to commercialisation, particularly as relates to their applicability to real-world assets.
In 2025, blockchain technology will enhance speed, security, and efficiency, especially in B2B and commercial payments. Its ability to do so will continue to require strategic partnerships with crypto natives and financial institutions alike to create more efficient and secure payment solutions.
3. Collaborative ecosystems
The development of technology in 2025 will be dependent on partnerships. Mastercard notes that partnerships will move from mere tactical alignments and agreements on paper to genuine collaborations that co-create solutions and accelerate large-scale innovation.
Financial institutions, corporations, governments, and fintechs will partner to embed technologies, drive efficiencies, unlock value, and enhance experiences. Fintechs, in particular, will continue to play a key role in simplifying financial services and delivering integrated and accessible tools that expand the benefits of the digital economy and ensure trust.
4. Real-time payments
According to projections, real-time payments are expected to rise rapidly, with 575 billion anticipated transactions by 2028, representing 27 percent of all electronic payments globally.
As countries move to interlink their domestic schemes, cross-border payments will become more seamless. More interoperability between real-time payments and other forms of payment, such as central bank digital currencies and digital assets, will make it easier to enable transactions between traditional bank accounts and digital currency accounts.
Read also: 2024: The Year Blockchain Went Mainstream
5. Contactless payments
Contactless payment is becoming more commonplace today, with experts projecting its exponential acceptance in 2025.
As physical and digital experiences continue to converge, we will see more applications of tapping tech across various commerce use cases, from verifying a transaction to instantly adding your card to your mobile wallet or sending money to friends and family.
6. B2B commerce
Businesses can now make real-time payments, prevent fraud, and manage costs more efficiently by embedding payments in enterprise resource planning software. Mastercard projects that the total market for embedded finance for small businesses could be worth up to $124 billion in 2025.
Corporate payments will also evolve as businesses realise the benefits of virtual cards — temporary card numbers randomly generated and linked to a funding account with an established line of credit. This creates automated reconciliation that reduces human error and offers companies real-time data insights and more control over spending.
7. Growth of digital identification
Biometrics, machine learning, and identity insights are already being used for authentication. However, adopting passwordless authentication, which propels this, will abound in 2025.
8. AI for fraud detection
Cybercrimes are expected to grow to over $10 trillion in 2025. With generative AI, they can produce phishing messages and deep-fake videos to steal data and money. However, AI can also be used for fraud detection as companies are training AI models to predict and neutralise threats in real time.
9. Digital inclusion
In emerging economies, digital wallets are playing the role of bank accounts by catering to businesses and individuals alike.
While these digital wallets are addressing unbanked populations head-on by delivering simple, convenient, and affordable experiences, there has been a disconnect in connecting traditional, card-based payments for international consumers.
In 2025, digital wallets will continue to evolve into comprehensive platforms, integrating payments, identity, loyalty, and even health care.
10. Small businesses will become more equipped
Small businesses will be increasingly able to access a wide range of digital tools and services previously out of reach or scattered among many different platforms that they were difficult to manage.
Centralised platforms uniquely tailored to the needs of small businesses are letting owners automate administrative tasks and create personalised marketing and loyalty campaigns, with data-driven insights to guide decision-making.
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