Eight Payment Processing Trends Every Business Leader Should Track

AI-driven fraud prevention, stablecoin adoption and direct acquiring relationships are transforming how businesses maximise payment performance and revenue growth

2025 has shaped up to be a big year for payments, driven by rapid tech advancements, regulatory shifts and evolving consumer expectations. And while AI plays a pivotal role in reshaping the industry, it’s just one of several key trends that impact how businesses and consumers approach payments.

From AI-driven automation to the rise of stablecoins and increasing regulatory pressure, the payments landscape is evolving rapidly.

This article breaks down eight major trends, including regulatory influence, stablecoins and fintech mergers, reshaping payments in 2025. Whether you’re in payments, financial services or any business using payments as a strategic advantage, here are the trends to gain a competitive edge:

Trend #1: AI (The New Standard in Fintech)

Artificial intelligence is no longer just a buzzword in fintech; it’s now a powerful driving force behind industry transformation. From customer onboarding to transaction monitoring and agentic commerce, AI can radically improve the way businesses operate by making processes faster, more secure and more personalised.

Its ability to analyse vast datasets in real time is enabling smarter fraud detection, compliance automation and more dynamic user experiences.

AI’s impact on payments is far-reaching:

Fraud Detection and Prevention

AI’s predictive capabilities are critical in detecting fraudulent patterns before they occur, helping businesses stay ahead of evolving threats.

Advanced AI models can analyse behavioural biometrics, the unique patterns in how users interact with devices, including typing speed, swipe motions or how a customer holds their device, to identify anomalies, making fraud detection even more precise.

As fraudsters also adopt AI to design more sophisticated attacks, companies continuously train AI models to stay ahead.

Hyper-Personalisation

AI tailors payment options, incentives and checkout experiences to individual customers, enhancing satisfaction and boosting conversions. By analysing past behaviours and preferences, AI-driven predictive analytics recommends the right payment methods and creates personalised incentives at checkout.

Agentic Commerce 

Agentic commerce refers to the use of AI agents to autonomously manage and execute transactions on behalf of a user or business. These AI agents are capable of:

• Searching and comparing products or services across different providers.
• Negotiating prices, finding the best deals and setting up recurring purchases.
• Managing payment and logistics based on pre-approved parameters.
• Interacting with other AI systems (e.g., vendor agents) to complete complex deals. 

AI is the core engine for this evolution, enabling sophisticated, self-directed purchasing that reduces user effort, improves efficiency and opens new channels for B2B and consumer transactions.

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Trend #2: Regulatory Pressure (U.S. Trends Cascading Globally)

As AI, cryptocurrencies, open banking and innovations rise in prominence, regulatory scrutiny has intensified. Consent orders and new regulations have signalled the end of the “wild west” era for fintech.

The Consumer Financial Protection Bureau (CFPB) has tightened regulations on areas like “junk fees” and buy now, pay later (BNPL) services which have prompted similar actions by the UK’s Financial Conduct Authority and the European Union.

The complexity of regulations demands that businesses innovate to ensure compliance.  AI plays a vital role in this by automating compliance tasks like Know Your Customer (KYC) and Anti-Money Laundering (AML) checks and its ability to track transactions and enforce real-time fraud prevention helps businesses stay ahead of changing regulatory environments.

Trend #3: Mobile & Contactless Payment Evolution

The mobile and contactless payment landscape has transformed dramatically with digital wallets and touchless payments becoming the preferred method for consumers worldwide:

• Digital wallet adoption: Digital wallets like Apple Pay, Google Pay and Samsung Pay have seen adoption rates increase year-over-year with broader merchant acceptance and improved user experiences driving growth.
• QR code payment growth: Once dominant primarily in Asian markets, QR code payments have expanded globally, offering merchants a low-cost alternative to traditional card terminals while providing enhanced security through dynamic code generation.
• NFC technology advancement: Near Field Communication technology has evolved beyond simple tap-to-pay, now supporting secure data exchange for loyalty programmes, digital receipts and product information, all through a single tap.
• Mobile commerce integration: Payment providers have deepened integration with mobile commerce platforms, creating seamless checkout experiences that remember user preferences, shipping details and payment methods across different merchants and platforms.

This evolution has created new opportunities for merchants to reduce friction in the payment process while collecting valuable customer data that helps personalise future interactions.

Trend #4: Real-Time Payments Network Expansion

The landscape of instant payment networks has evolved dramatically:

• FedNow adoption: The Federal Reserve’s instant payment service has seen steady adoption among financial institutions with more than 1,000 banks and credit unions now participating. Businesses using FedNow-connected banks benefit from 24/7/365 payment capabilities and instant settlement.
• European Instant Payment initiatives: The European Central Bank’s TIPS (TARGET Instant Payment Settlement) service is achieving universal adoption across the Eurozone through mandatory regulations requiring all payment service providers to offer instant payments by January 2025, making cross-border instant payments standardised rather than exceptional.
• Business impact: Real-time payment networks have transformed operations for businesses by reducing working capital requirements through instant receivables, eliminating the need for expensive wire transfers for time-sensitive payments and facilitating instant refunds and disbursements that improve customer satisfaction

These developments mark a fundamental shift in how businesses manage cash flow with treasury operations increasingly built around the assumption of instant rather than delayed settlement.

Trend #5: The CFO’s Office (A New Focus for Payments Solutions)

The role of the Chief Financial Officer (CFO) has evolved and become more focused on digital tools and automated systems. Historically served by giants like SAP and Oracle, the CFO’s office is now a key target for fintech innovation.

Startups and established platforms alike are developing specialised tools for financial modelling, cash flow management and automated accounts payable and receivable processes.

Accounts payable automation, the technology that streamlines the processing of supplier invoices from receipt through payment with minimal human intervention, has become standard in finance departments. These systems typically reduce processing costs while cutting processing time.

This transformation has empowered CFOs to move beyond traditional financial oversight into a more strategic role that focuses on driving business growth and innovation.

Trend #6: Stablecoins (Moving from the Edge to Mainstream Use Cases)

Stablecoins have shifted from niche crypto projects into mainstream finance. Their ability to facilitate transactions quickly and cost-effectively makes them attractive, particularly for cross-border payments.

Several major banks have incorporated stablecoins into their operations and services:

• JPMorgan Chase pioneered this space with its JPM Coin, a permissioned blockchain-based stablecoin pegged to the US dollar. A permissioned blockchain restricts network participation to approved entities, unlike public blockchains like Bitcoin. JPMorgan customers use it to facilitate instant settlements and manage internal liquidity with transaction volumes reaching approximately $1 billion daily as of late 2023. 
• BBVA incorporated USD Coin (USDC) into its crypto asset service in Switzerland, allowing institutional and private banking clients to exchange, custody and automatically convert USDC in near real-time.
• Japan’s major banks, MUFG, SMBC and Mizuho, are participating in Project Pax, a cross-border payment system using stablecoins instead of correspondent banks. The system integrates with SWIFT messages, enabling corporate clients to make trade payments seamlessly.

The total market capitalisation of stablecoins has exceeded $200 billion, demonstrating significant institutional and commercial adoption.

Key advantages of stablecoins in commercial applications include:

• Settlement speed: Transactions typically settle in minutes rather than days
• 24/7 operation: Unlike traditional banking systems with business hour limitations
• Reduced intermediaries: Fewer correspondent banks in cross-border transactions
• Programmable money: Smart contracts enabling conditional payments and escrow
• Transparency: Improved visibility into payment status and history

This trend highlights the growing importance of digital currencies and the need for businesses to stay informed about their potential applications.

Trend #7: Consolidation in the Fintech Industry (A Surge in M&A Activity)

With AI taking centre stage, we’ve seen significant mergers and acquisitions (M&A) activity in the fintech space. As competition intensifies, larger companies are acquiring smaller players to expand their market share and technology stacks.

This consolidation trend has reshaped the competitive landscape and businesses must be prepared to adjust their strategies accordingly.

Trend #8: Orchestration (The Growth of Payment Routing)

What was once referred to as “smart routing” in payments has evolved into a broader concept known as orchestration. Payment orchestration now goes beyond simply optimising transaction flows across multiple payment service providers (PSPs).

Increased competition between orchestration platforms has made it more important than ever for orchestrators to build partnerships with card acquirers and payment platforms that offer a wide variety of services and support merchants across a broad spectrum of industries.

These Eight Trends Are Redefining Fintech

Financial technology is being redefined by the influence of AI, a new era of regulatory compliance and fundamental shifts in how money moves globally. From the instant settlement enabled by real-time networks to the strategic importance of the CFO’s office, these eight trends underscore a clear message: payments are no longer just a back-office function.

They are a core driver of business strategy and competitive advantage. By embracing AI-driven fraud prevention, leveraging stablecoins for global reach and adapting to the evolving mobile landscape, business leaders can ensure their payment infrastructure is a strategic driver of growth.