In this article, we explore the key payment predictions for 2025 and how they will affect businesses.
1. Growing demand for seamless, user-friendly payment experiences
The expectation for seamless, user-friendly payment experiences is not limited to consumers alone. Businesses also demand intuitive interfaces for transaction banking services. McKinsey notes that commercial customers will increasingly expect their payment solutions to mimic the easy-to-use interfaces they encounter in consumer-facing apps.
This demand for simplicity is driving transaction banks to rethink their offerings. Companies like Goldman Sachs and Royal Bank of Canada are already launching transaction banking units focusing on user-friendly, efficient systems to cater to their corporate clients. Adopting modern interfaces and integrating with advanced payment technologies will be essential for businesses that want to remain competitive.
Businesses will likely shift towards more intuitive, consumer-grade experiences in the corporate payments sector by investing in modern PSPs that provide simplicity and integration with other payment systems.
2. Cross-border payments will experience massive growth
Cross-border payments are one area of global payments undergoing rapid innovation. The increasing number of businesses aiming to extend their services globally is driving this expansion. McKinsey highlights that non-bank providers are increasingly becoming the go-to choice for SMEs seeking to send or receive payments internationally, as traditional banks often fail to meet global businesses’ speed and cost requirements.
The next few years will see a continued rise in cross-border payment options, with fintech platforms offering real-time solutions that compete with banks. As digital currencies become more mainstream, these could also play a key role in facilitating cheaper and faster cross-border transactions.
3. Digital public infrastructures will propel global payment systems
Digital Public Infrastructure (DPI) has already transformed markets like India, Brazil, and Estonia, helping create more inclusive and efficient digital payment ecosystems. McKinsey projects that DPI will become more widespread in emerging economies such as Indonesia, Nigeria, and Peru. These initiatives include digital IDs, interoperable payment systems, and government-backed solutions that can reduce fraud and enhance payment security.
For businesses, this shift represents a unique opportunity to participate in new, government-backed payment ecosystems. Markets where DPI is robust offer streamlined payment systems with lower transaction fees and fewer barriers to entry. However, businesses will need to ensure that they comply with the new regulatory frameworks that come with these systems. The payment industry is likely to see an increased adoption of digital payment infrastructures in emerging markets, enabling faster and more secure transactions.
4. Instant payments will continue to improve transactions
Immediate payments have already caused major changes in conventional payment methods, and this trend is predicted to accelerate in 2025. Real-time payments (RTP) infrastructure is becoming ubiquitous, with more countries adopting systems like the UK’s Faster Payments or India’s UPI. McKinsey’s analysis shows that instant payments will increasingly replace cash and checks, especially in markets with low card penetration, such as India and Brazil.
For businesses, this means faster transactions, less reliance on traditional payment methods, and the potential to reduce transaction costs. However, the increasing complexity of these systems will require businesses to ensure they have the right infrastructure to handle real-time processing and reconciliation. Smaller businesses may need to work with specialized providers to ensure smooth integration into their systems.
5. Central Bank Digital Currencies (CBDCs) Implementation
While excitement around CBDCs has cooled, their role in global payments is becoming clearer. Over 90% of central banks are now pursuing or considering CBDC projects, and McKinsey expects these digital currencies to set a baseline for what users can expect from digital payment systems in terms of functionality, cost, and security.
In 2025, CBDCs will probably serve as a foundational element in the global payments ecosystem. They will provide an alternative to commercial stablecoins, ensuring the digital currency landscape remains transparent and regulated. Furthermore, as more CBDCs are implemented, businesses will need to consider integrating these new forms of currency into their payment systems.
Businesses need to stay updated on regulatory changes regarding CBDCs in case they need to integrate them into their payment systems.
What should businesses expect?
AI, blockchain, and other emerging and established technologies will influence business payments in 2025. Companies running online businesses must build on their previous payment successes to integrate the expected changes in the payments industry. For instance, increasing payment options or adopting a more advanced payment service provider will help prepare a business for 2025’s changes.