The Future of Payments: Key Trends That Will Shape 2025
February 3, 2025
The payments industry is evolving faster than ever, with trends like real-time payments, subscription innovations, and AI-powered tools redefining how businesses and consumers interact. In this interview, Anastasija Tenca, Chief Operations Officer at Noda, shares insights on what to expect in 2025, from Pay-by-Bank solutions to futuristic voice-activated payments.
Find out how businesses can stay ahead, adapt to new technologies, and deliver the seamless, secure experiences customers now demand.
What are the key payment trends in fintech for 2025?
The payments landscape will continue becoming more diverse and consumer-focused. Digital wallets are already mainstream, but alternative payment methods like BNLP are gaining momentum. Open banking, or Pay-by-Bank, is another trend gaining traction. This is partially due to regulations like Instant Payment Regulation (IPR), which enforces real-time bank transfers — great news for merchants and customers, as they are also cost-effective. Younger consumers, especially, are embracing instant payments while steering clear of credit cards and their high interest rates. This makes Pay-by-Bank more appealing at ecommerce checkouts.
Are customers getting tired of waiting days for settlements and leaning more toward instant payment options?
Yes, absolutely. Real-time payments are becoming the standard for optimal UX. 1-click payments are another game-changer. They significantly reduce cart abandonment rates — from over 70% for multi-step checkouts to under 1% for one-click experiences. They are especially great for mobile in-app shopping experiences. For example, at Noda, we provide an option to save bank details, making 1-click checkout possible for EU and UK customers.
What about subscription payments? Open banking is mostly used for one-off payments right now. Will that change?
Subscription payments are growing fast, especially among Gen Zs and Millennials, who love streaming services and digital subscriptions. It’s true that open banking has mostly focused on one-off payments so far. But that’s set to change with Variable Recurring Payments, VRPs. They are powered by open banking. There are two types: sweeping (me-to-me transfers between accounts owned by the same person) and non-sweeping (customer-to-merchant payments).
Sweeping VRPs are already mandated by the UK’s regulator, but non-sweeping is still an experiment. Banks like NatWest and HSBC are working with providers to explore this. By late 2025, the regulators in the UK are set to expand non-sweeping VRPs to low-risk scenarios like utilities and financial services. This will make open banking a strong player in subscription payments in 2025, at least in the UK.
AI and ML have been hot topics lately. How will they shape payments in 2025?
Their impact will only grow in 2025. Goldman Sachs expects over $200bn invested in AI in Europe next year, so we’re only scratching the surface of what’s possible. AI and machine learning are already vital for fraud detection with real-time monitoring. AI also helps with regulatory compliance by automating checks.
Beyond security, AI tools are great for data analytics and optimising user experiences. For example, at Noda, we’re combining AI with open banking data for our Know Your Whales (KYW) tool. AI helps to analyse the transaction data provided via open banking. This helps merchants with LTV prediction and optimising their marketing strategies.
How can businesses adapt to new payment technology? What advice would you give them?
It starts with staying informed — educate yourself and your employees about the latest trends and tools. Make sure you’re offering a mix of payment methods to suit different needs, and use API-driven systems to keep things running smoothly. Adopting AI and analytics can give you a real edge, but no matter what tech you bring on board, always put security and compliance first.
Finishing on a positive note — what payment methods surprise a payments expert like you?
Voice-activated payments! They’re starting to pop up through home assistants and other smart devices, and they feel straight out of a sci-fi movie. They are secured with biometric authentication, so they’re both futuristic and safe. And they’re no small trend — voice payments are projected to hit $164 billion by 2025. Imagine just saying, “Pay the electricity bill” or “Order my favourite coffee,” and it’s done — no hands required!
Find out how businesses can stay ahead, adapt to new technologies, and deliver the seamless, secure experiences customers now demand.
What are the key payment trends in fintech for 2025?
The payments landscape will continue becoming more diverse and consumer-focused. Digital wallets are already mainstream, but alternative payment methods like BNLP are gaining momentum. Open banking, or Pay-by-Bank, is another trend gaining traction. This is partially due to regulations like Instant Payment Regulation (IPR), which enforces real-time bank transfers — great news for merchants and customers, as they are also cost-effective. Younger consumers, especially, are embracing instant payments while steering clear of credit cards and their high interest rates. This makes Pay-by-Bank more appealing at ecommerce checkouts.
Are customers getting tired of waiting days for settlements and leaning more toward instant payment options?
Yes, absolutely. Real-time payments are becoming the standard for optimal UX. 1-click payments are another game-changer. They significantly reduce cart abandonment rates — from over 70% for multi-step checkouts to under 1% for one-click experiences. They are especially great for mobile in-app shopping experiences. For example, at Noda, we provide an option to save bank details, making 1-click checkout possible for EU and UK customers.
What about subscription payments? Open banking is mostly used for one-off payments right now. Will that change?
Subscription payments are growing fast, especially among Gen Zs and Millennials, who love streaming services and digital subscriptions. It’s true that open banking has mostly focused on one-off payments so far. But that’s set to change with Variable Recurring Payments, VRPs. They are powered by open banking. There are two types: sweeping (me-to-me transfers between accounts owned by the same person) and non-sweeping (customer-to-merchant payments).
Sweeping VRPs are already mandated by the UK’s regulator, but non-sweeping is still an experiment. Banks like NatWest and HSBC are working with providers to explore this. By late 2025, the regulators in the UK are set to expand non-sweeping VRPs to low-risk scenarios like utilities and financial services. This will make open banking a strong player in subscription payments in 2025, at least in the UK.
AI and ML have been hot topics lately. How will they shape payments in 2025?
Their impact will only grow in 2025. Goldman Sachs expects over $200bn invested in AI in Europe next year, so we’re only scratching the surface of what’s possible. AI and machine learning are already vital for fraud detection with real-time monitoring. AI also helps with regulatory compliance by automating checks.
Beyond security, AI tools are great for data analytics and optimising user experiences. For example, at Noda, we’re combining AI with open banking data for our Know Your Whales (KYW) tool. AI helps to analyse the transaction data provided via open banking. This helps merchants with LTV prediction and optimising their marketing strategies.
How can businesses adapt to new payment technology? What advice would you give them?
It starts with staying informed — educate yourself and your employees about the latest trends and tools. Make sure you’re offering a mix of payment methods to suit different needs, and use API-driven systems to keep things running smoothly. Adopting AI and analytics can give you a real edge, but no matter what tech you bring on board, always put security and compliance first.
Finishing on a positive note — what payment methods surprise a payments expert like you?
Voice-activated payments! They’re starting to pop up through home assistants and other smart devices, and they feel straight out of a sci-fi movie. They are secured with biometric authentication, so they’re both futuristic and safe. And they’re no small trend — voice payments are projected to hit $164 billion by 2025. Imagine just saying, “Pay the electricity bill” or “Order my favourite coffee,” and it’s done — no hands required!