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With the year drawing to a close and everywhere looking 𝘊𝘩𝘳𝘪𝘴𝘵𝘮𝘢𝘴𝘴𝘺 already, it is a natural time to take a step back and reflect.

In an industry like payments, where the pace of evolution is relentless, each year brings a different focus, drawing attention to specific themes, shifting perspectives, and sparking new innovation. Clearly 2024 has been no exception.

The payment industry stands at such an intersection, where we’re not just witnessing the emergence of new technologies but also seeing the evolution and enhancement of foundational infrastructures. This is what fascinates me the most about this space… ie. the way these advancements are creating opportunities that redefine both customer experiences and business operations.

The payment industry stands at such an intersection, where we’re not just witnessing the emergence of new technologies but also seeing the evolution and enhancement of foundational infrastructures. This is what is most fascinating. The way these advancements create opportunities that redefine both the customer experience and business operations.

If we had to sum up the key drivers of innovation in three words, we’d pick: 𝐂𝐨𝐥𝐥𝐚𝐛𝐨𝐫𝐚𝐭𝐢𝐨𝐧, 𝐈𝐧𝐭𝐞𝐫𝐨𝐩𝐞𝐫𝐚𝐛𝐢𝐥𝐢𝐭𝐲, 𝐚𝐧𝐝 𝐕𝐚𝐥𝐮𝐞.

The industry is more open than ever before, shifting from a landscape dominated by giant players to a more shared, collaborative ecosystem. This is driven by disruptive tech, players, and enablers leveraging niche approaches to create or add value. This new camaraderie, although not always led by choice , still fosters a dynamic environment where diverse strengths come together to build better solutions for everyone. Although, quite often, the success of these approaches hinges on true interoperability.

There are a number of developments particularly intriguing to see unfold, mature, and continue to challenge the status quo:

Security and particularly the authentication technologies: While the industry is moving beyond traditional password or SMS methods, the future is defined by biometric markers, behavior analysis, and even tokenised approaches that streamline the experience while enhancing safety. With innovations like palm scans and passkeys, payments are becoming more embedded and less obtrusive. The evolution of these technologies signals a future where payments are seamlessly integrated into everyday interactions.

Watching how the newer technologies will find their place in the wider ecosystem, balancing convenience with security, is incredibly exciting. It’s not just about keeping transactions safe; it’s about making safety seamless for the end user.

The embedded vs. integrated models: As embedded finance matures, and seamlessly integrates financial services within non-financial environments, it’s becoming clear that it’s not simply a buzzword but an integral trend transforming customer journeys. Embedded finance allows payments to become an almost invisible part of the transaction. The debate, or perhaps synergy between embedded and integrated models has taken center stage. On one hand, embedded finance promises convenience and contextually rich payment experiences, effectively making the payment disappear for the end user. On the other hand, integrated systems bring cohesion across merchant services.

The battle for wallet share with Apple opening access to its Secure Element: Apple’s Secure Element technology has long been coveted, especially considering how it has shaped Apple’s product ecosystems and how it has enabled Apple through the Apple Pay wallet to redefine the user mobile experience and checkout experience.

Now with Apple opening its NFC infrastructure to third-party fintech apps, allowing alternative payment solutions to access the iPhone’s NFC chip, it will be interesting to see how this will push the boundaries of mobile wallet integration models and possibly challenge Apple Pay’s dominance.

This shift is not just about gaining technical access; it’s about the controls over the customer relationship at the point of payment.

Watching various players—from banks to tech platforms—navigate this newly available territory could redefine consumer behavior around digital wallets in significant ways.

Network Tokenisation with Mastercard 2030 ecommerce target: Mastercard’s ambitious goal to remove all many PAN key entry on ecommerce transactions by 2030 could significantly reshape online payments. Network tokenisation is more than a security upgrade; it’s about streamlining the customer journey, reducing friction points, and enhancing the value proposition of stored credentials. As this target unfolds, the ripple effects on customer loyalty, fraud reduction, and partnerships across the payment value chain are bound to be noteworthy. It could be a game-changer in bringing trust and convenience to the forefront of ecommerce.

The in-person infrastructure (NFC, QR, POS): Despite the digital surge, the in-person payment infrastructure remains vital, and it’s evolving. From NFC to QR code adoption, the convergence of various technologies at the point-of-sale (POS) speaks to how retailers are balancing customer preferences across regions. Each market seems to have its unique twist on what “in-person” should look like, and those choices impact user experience and operational efficiency. How new models like Tap on Phone or Scan & Pay influence traditional POS setups could determine the future of physical retail interactions. Additionally, Soft POS solutions, which allow merchants to turn a standard smartphone into a POS terminal, are gaining traction. Soft POS brings affordability and accessibility to small businesses, enabling them to accept payments without the need for dedicated hardware. This could be transformative for expanding digital acceptance, especially in emerging markets or smaller-scale retail environments.

Everything cards… Multi-PAN framework, Visa Flexible Credential: Cards continue to reinvent themselves. The Multi-PAN framework and Visa’s Flexible Credential are emblematic of that change, pushing the boundaries on how credentials are stored, managed, and used. Imagine a single card that can function differently based on the context—a true shape-shifter. Such innovations can redefine expense management, personal finance, and how consumers think about their cards as more than just a payment tool. These developments aim at flexibility, giving both issuers and consumers more control over their spending instruments.

Cross-border payments: With real-time rails, improved currency corridors, and better FX management solutions, the once painful process of sending money across borders is starting to catch up to the modern standards of speed and transparency. It’s the type of shift that doesn’t just improve user experience; it opens up business opportunities and facilitates global trade. Solutions that focus on interoperability, transparency, and cost reduction are crucial for advancing cross-border transactions and making global trade more accessible.

Omnichannel and Unified Commerce: As consumers move fluidly between online, in-store, and mobile environments, the need for a cohesive and consistent payment experience has become critical. Unified commerce is addressing this by integrating all payment channels, ensuring seamless customer experiences regardless of how or where consumers shop. The increasing adoption of contactless payments further enhances this experience, offering speed and convenience, while ensuring security remains paramount.

For merchants, the integration of unified commerce systems helps break down silos and provides a 360-degree view of their operations, enabling them to respond effectively to customer needs and preferences. This omnichannel approach not only increases satisfaction but also drives customer loyalty and operational efficiency.

Lastly, Real-Time Payments (RTP) are shaping the always-on, instant economy that thrives on speed, convenience, and accessibility. Taking a look at the East, particularly India, which has been a pioneer in RTP, the integration of RTP with everyday applications has set a new global standard for financial inclusion. It seems obvious that the next frontier lies in developing cross-border RTP systems, which could unlock significant growth for industries reliant on real-time financial flows.

The merchant payments ecosystem is just at the beginning of a significant evolution.

#Paymentexperts, what are your 2025 perspectives?

—

𝑾𝒐𝒏𝒅𝒆𝒓 𝒘𝒉𝒐 𝒘𝒆 𝒂𝒓𝒆?

𝘞𝘦 𝘢𝘳𝘦 𝘢 𝘵𝘦𝘢𝘮 𝘰𝘧 𝘗𝘢𝘺𝘮𝘦𝘯𝘵𝘴 𝘚𝘵𝘳𝘢𝘵𝘦𝘨𝘪𝘴𝘵𝘴 𝘣𝘭𝘦𝘯𝘥𝘪𝘯𝘨 𝘰𝘶𝘳 𝘪𝘯𝘥𝘶𝘴𝘵𝘳𝘺 𝘦𝘹𝘱𝘦𝘳𝘵𝘪𝘴𝘦 𝘸𝘪𝘵𝘩 𝘢 𝘤𝘳𝘦𝘢𝘵𝘪𝘷𝘦 𝘢𝘱𝘱𝘳𝘰𝘢𝘤𝘩 𝘵𝘰 𝘢𝘴𝘴𝘪𝘴𝘵 𝘰𝘶𝘳 𝘤𝘭𝘪𝘦𝘯𝘵𝘴 𝘵𝘩𝘳𝘰𝘶𝘨𝘩 𝘊𝘰𝘯𝘴𝘶𝘭𝘵𝘪𝘯𝘨, 𝘚𝘵𝘳𝘢𝘵𝘦𝘨𝘺, 𝘙𝘦𝘴𝘦𝘢𝘳𝘤𝘩 𝘢𝘯𝘥 𝘛𝘩𝘰𝘶𝘨𝘩𝘵 𝘓𝘦𝘢𝘥𝘦𝘳𝘴𝘩𝘪𝘱 𝘱𝘳𝘰𝘫𝘦𝘤𝘵𝘴.

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