2024 in the payments industry could best be described as a year in which companies began to realise the full potential of next-generation technology.
While these innovations from AI to blockchain are nothing new to the industry, leaders across the sector began to take note of the potential these technologies possess when it comes to unearthing newfound abilities to accelerate the payment experience.
To discuss in detail the year that has transpired talking on a whole range of topics such as embedded finance, fraud, crypto and more, three OpenPayd executives shared their thoughts with Payment Expert, starting with Barry O’Sullivan, Head of Banking and Payment Infrastructure.
What are some of the broader fintech trends you anticipate that will shape the industry in 2025?
Fraud and compliance
With new regulations in the payment industry, authorised push payment (APP) fraud for example, companies are going to have to ensure that they are compliant and have the right measures in place to deal with the growing amount of fraud attacks globally.
Fraud is becoming increasingly more challenging to spot and protect against, with criminals using very sophisticated ways to scam individuals and businesses out of their money. AI and deepfakes are becoming scarily accurate.
Embedded finance
We will see companies starting to understand what will be best for them in terms of offering services related to their business and then embedding the right solutions in 2025. For example, it wouldn’t make sense for a supermarket to offer vIBANs to clients, but if you’re an online store who only takes cards as payment method, considering providing a branded credit or debit card, it would make sense to add new revenue streams.
We will continue to build our offering of rail agnostic payments, so that our clients have more choice and more solutions to offer to their end customers. We are seeing a lot more focused and customised offerings within the market, embedded payments, lending, banking, insurance etc., and I think this will continue to grow under the overall “Embedded Finance” badge.
AI and machine learning
No doubt, internal AI tools will advance and evolve further in 2025 to support many in-house departments to streamline processes and reduce cost and time for the tasks that do not need a human.
I can see internal AI tools advancing and evolving to support many in-house departments to streamline processes and reduce cost and time for the tasks that do not need a human.
Cross-border payments
I expect to see continued advancements in cross border payments in 2025 – we have already seen countries like Singapore, Thailand and Malaysia working together to join payment systems for real-time cross border payments. Not only will there be more collaboration in regions, but also growth globally in real-time. The use of stablecoins in payments will play a big part in this.
What do you think needs to happen to increase adoption of technologies such as Open Banking and Banking-as-a-Service?
Open Banking will continue to grow as the market matures with businesses and merchants being key to growth here. Yet there still needs to be more education on the end user as they will ultimately be the ones that decide the adoption. This for me is down to the merchants, business etc to drive this education and even offer incentives for customers.
There is a nervousness for an individual to have another app open their banking app and many get scared off by the process and choose another payment method. Education around safety and security is paramount for success.
Following O’Sullivan, OpenPayd Director of Growth Lux Thiagarajah, focuses predominantly on the crypto space, particularly on the rise of tokenisation as it has now become an industry-wide practice for some of the largest players like Visa and Mastercard to ensure secure payment protection.
Thiagarajah also delves into how the US crypto sector will pan out next year following President-elect Donald Trump’s pro-crypto campaign where he has promised to make the US a global leader.
What can we expect in the cryptocurrency space in 2025?
In 2025, we can expect cryptocurrency to grow significantly for a couple of reasons, primarily, macroeconomic and regulatory factors. Trump’s anticipated policies could provide support for the crypto market, especially with global interest rates levelling off and potential investor interest in higher yields.
Stripe’s acquisition of Bridge has already pushed stablecoins further into the mainstream, signalling stablecoins becoming a central part of the payments ecosystem.
Another key theme is tokenisation, although this may be less prominent than stablecoins.
Tokenisation could revolutionise asset classes by allowing broader accessibility to investments. Additionally, clearer regulations from Washington may bring stability, encouraging more institutional involvement. However, there is a risk that if the administration does not fully support crypto as anticipated, the regulatory landscape may remain unpredictable.
This is going to be an exciting year for the industry with mainstream cryptocurrency adoption being in sight! This adoption will be driven by regulatory clarity, a crypto-friendly US government, and increased institutional investment. As regulations build trust, major institutions and banks may feel more secure entering the crypto space.
This could lead to substantial asset allocation from major funds, legitimising crypto as a competitive asset class, causing essentially a domino effect. With fewer “bad players” like SBF, the market will hopefully gain stability, inviting broader public and institutional engagement.
How do you think regulations will affect the market dynamics?
Regulation is going to be key in 2025, likely bringing legitimacy, resiliency, and, most importantly, trust to the crypto market. With regulation increasing, the crypto market will begin to become more appealing to major institutions. While crypto traditionalists may fear the idea of tighter regulation, it’s essential for crypto to compete with established asset classes and attract significant investment, ultimately stabilising and growing the market.
Which blockchain innovations do you believe will have the most significant impact in the next few years?
In the coming years, stablecoins and CBDCs will likely transform payments and financial stability. However, we are also excited to see how blockchain in gaming will drive user ownership and new revenue models, accelerating blockchain’s mainstream adoption across various industries.
Lastly, Coral Kratenstein, Product Marketing Lead at OpenPayd, shared her thoughts on AI as well – albeit – focusing more on how the emerging technology can play a crucial role in building more efficient subscription payment models.
In 2025, what aspect of payments do you believe AI will impact the most?
In 2025, subscription-based and freemium models for fintech products will become smarter and more personalised, thanks to AI and behavioural insights.
Hyper-personalisation will be key, offering tailored features like automated investment tips or credit score boosters based on user habits. Retention will hinge on perceived value – platforms will focus on keeping users engaged through tools like webinars, financial coaching, and active communities. These extras won’t just help users but will also nudge them towards premium tiers.
How important will gamification and engagement tools be for product success next year?
Gamification and engagement tools are incredibly important for product success, as businesses increasingly demand tools that drive productivity, collaboration, and measurable ROI.
Unlike in B2C, where gamification often focuses on fun and habit-building, B2B gamification will prioritise outcomes, using leaderboards, milestone tracking, and rewards to align teams and foster adoption.
