Each year, our Advanced Payments and Fintech Report provides a comprehensive view of the latest trends defining the payments landscape. Now in its 18th edition, the report examines 14 themes across four domains, highlighting how innovation, evolving business models, and shifting consumer expectations are driving rapid industry change. In 2025, AI, digital identity, embedded finance, and emerging infrastructure are shaping how money moves, how businesses operate, and how consumers interact with financial services.
Key Insights & Takeaways
1. Technology and AI-Led Transformation
- Payment orchestration is evolving from static rules to fully autonomous Agentic AI systems, improving authorization rates, reducing fraud, and lowering operational costs. Nearly 4 in 10 experts consider AI orchestration essential, with another 45% seeing it as highly important.
- Biometric authentication—fingerprint, facial, and voice recognition—cuts fraud by up to 75%, streamlines onboarding, and supports regulatory compliance.
- Embedded eCommerce and digital identity solutions are accelerating conversion, loyalty, and trust. 76% of experts expect frictionless checkout experiences to drive growth over the next 3–5 years.
2. Business Models Unlocking New Revenue
- Subscription BNPL adoption is growing, helping merchants increase free-trial conversions and simplify recurring payments.
- Connected car payments are converting vehicles into hands-free points of sale for fuel, EV charging, parking, and lifestyle services.
- Insurtech innovations, including usage-based insurance and AI-driven claims, accelerate approvals, reduce fraud, and create new revenue streams.
- Payments in virtual economies and AI-powered personalization drive high-frequency transactions and engagement, with 48% of experts identifying in-game purchases as a leading growth driver.
3. Infrastructure Powering Global Payments
- Stablecoins are emerging as a practical payments rail. Nearly half of respondents see cross-border payments as the area where stablecoins will have the biggest impact, with many also expecting strong use cases in B2B transactions and bank integration.
- Cross-border payments are shifting toward hybrid models that combine instant rails with traditional systems like SWIFT.
- Open Banking, BaaS, and alternative payment methods enable frictionless account creation, compliance, and flexible financial product delivery.
- 43% of experts report that offering more payment options increases consumer convenience, though 24% caution against decision fatigue.
4. Financial Inclusion and Consumer Shifts
- Over 500 million customers now use digital banks globally, benefiting from low fees, fast onboarding, and embedded services.
- In emerging markets, a $5.7 trillion MSME financing gap persists, but fintech-driven solutions are expanding access to capital and supporting economic growth.
The payments ecosystem is increasingly interconnected and fast-evolving. Survey insights from senior payments professionals show strong consensus: speed, digital adoption, and innovation are the most critical trends, while frictionless experiences, customer trust, and regulatory compliance will determine who leads and how value is created.
Looking ahead, stakeholders must balance competing priorities—delivering seamless customer experiences, maintaining compliance, and differentiating in a fragmented market. This report draws on industry developments, emerging technologies, and innovative business models to provide a clear view of today’s payments landscape and actionable insights for capitalizing on opportunities and addressing challenges shaping its future.
