As we settle into 2025, the payment landscape as we know it continues to grow. The last few years have seen a huge rise in advanced payment technologies which have transformed the way consumers pay for their goods and services. From contactless payments to blockchain technologies, these advancements have paved the way for the industry, and this is only the beginning.
In this article, we discuss five of the most unexpected payment trends that are expected to change the way we send and receive payments in 2025 and beyond.
Speedier Refund Processing
Refunds are known to take several days to process, being a standard part of the retail experience as we’ve known it for years. With that being said, 52% of consumers stated that they’re less likely to shop with a retailer again if a refund takes a long time to receive. As payment technologies advance and consumer expectations heighten, retailers are noticing a shift in behaviours around refunds.
In 2025, faster refund processing is expected to become a key trend that sees real-time, or at least significantly quicker, refund payments landing in consumers’ bank accounts. Open banking tactics have made this option significantly easier for retailers, processing refunds faster by using pre-verified information.
Real-Time Global Payments
Making payments overseas has long been a pain point for many, coming with costly fees, conversion challenges, and time delays. As we enter 2025, there is expected to be a breakthrough in real-time global payments which will allow transactions to be made as they would with local transfers.
Blockchain technology offers a decentralised way of conducting transactions by reducing the need for intermediaries. This is not only faster, but cheaper, which is bound to open up new opportunities in the world of global trade. Real-time global payments are looking to be among the most significant trends in payments on a wider scale, completely resetting the standard for overseas transactions.
FlexiPay To Become Commonplace
FlexiPay is currently valued at more than £1 trillion and is continuing to open up the UK small business payments market. It enables consumers the option to choose from different flexible payment options, expanding on the concept of buy now, pay later (BNPL), which has been growing in popularity over recent years.
By allowing consumers to make payments in smaller chunks over a period of time, often with interest-free periods, FlexiPay is benefiting both consumers and businesses. With shoppers being able to make purchases that they may not have been able to without the flexibility of BNPL, the retail landscape is opening up to a wider demographic.
The Rise Of Virtual Cards
Virtual cards are digital representations of physical cards that can be used for online purchases, subscriptions, and in-person mobile payments. They have already picked up significant traction, but their popularity is expected to boom throughout 2025.
In addition to the convenience of consumers not having to carry around physical cards and worry about losing them, security is increased. Virtual cards prevent unauthorised transactions and fraud through advanced security protection that requires authentication.
This year is also predicted to see a rise in different forms of virtual cards. As well as debit and credit cards, businesses are expected to produce virtual loyalty cards or shopping cards which can be added to digital wallets. This is a huge shift from the traditional ways of shopping we all know but is a big step for tech-savvy customers looking for convenience.
Biometric Authentication
To make online payments safer than ever, biometric authentication is looking to become commonplace in 2025. Requiring users to access their payment technology through fingerprint scanning, facial recognition, or iris scanning means unauthorised users are unable to enter the system.
This is expected to replace passwords and PINs as not only does it maximise security, but provides added convenience. Biometrics cut out the need to remember multiple passwords, instead just requiring a simple glance or touch of a finger to carry out digital transactions.
The Future Of The Payment Landscape
The five expected payment trends listed above could just be the start – the advancements we’ve all seen over recent years and naturally adapted to show just how innovative the payment industry can be.
As we look forward into 2025 and beyond, there are bound to be a series of new developments that make every day that little bit more convenient and streamline the process of sending money on a local and global scale.
