There has been a surge of payment developments that have emboldened the e-commerce space – such as tokenisation – to not only meet customer satisfaction, but also take their payment capabilities to new heights in 2024.
Looking ahead to this year however, Payment Expert heard from three industry leaders to gain their perspective on some of the payment functionalities set to enable merchants and e-commerce platforms even further.
Svetlio Todorov, Managing Director, emerchantpay
Losses from payment card fraud are expected to rise significantly to $43bn by 2026, therefore consumer demand for secure and frictionless payment experiences will remain prevalent in 2025. In response, businesses must adopt advanced fraud prevention technologies.
Artificial Intelligence (AI) for example, must be implemented into more businesses strategies as they fight against fraud. As these solutions develop, they will become crucial in protecting against fraud across multiple payment channels.
Additionally, with regulators tightening consumer protection requirements, I expect to see greater attention on payment regulation next year; especially as we find out more about the Payment Services Directive (PSD3). Other regions are also likely to explore similar regulations. However, challenges in managing cross-border transactions will persist, making cross-country regulatory harmonisation essential for progress.
Offering a mix of payment methods will also be essential as we move into the new year. I think we will see more methods like Open Banking and mobile wallets continuing to grow, providing the streamlined and secure transactions consumers’ desire. In addition, as the US government shows ongoing support for cryptocurrencies, the payment method will be pushed closer to mainstream adoption but will also face greater scrutiny from regulators.
In the meantime, retailers and merchants must assess their ability to accept crypto, considering the implications this will have on their payment strategies. How they can streamline integration with their current payment methods will be crucial for success in 2025.
Darren Carvalho, Co-Founder and Co-CEO, MetaWealth
During 2024, the fintech community has recognised that tokenisation technology can vastly improve some of the hindrances of the legacy technology and modern fintech that maintains global financial systems today.
Many firms leveraging blockchain have come into the spotlight with a focus on building real-world utility, with great examples including Bridge, acquired by Stripe for $1 billion, Ripple and Circle.
Looking ahead to 2025, we’re anticipating a resurgence of blockchain-based fintechs, poised to deliver on their promises of enhancing financial inclusion. By unlocking access to previously unattainable investments and financial services through tokenisation, these innovative fintechs will empower many individuals and communities to better their finances.
The integration of blockchain with the traditional financial ecosystem is accelerating at an unprecedented pace as progressive policy shifts promised by the incoming US administration near. With these developments, tokenisation’s long-discussed potential to reshape the financial landscape will finally come to fruition, and fintechs will be at the forefront of this growth, bridging the gap between innovative Web3 infrastructure and real-world impact.
Merusha Naidu, Global Head of Partnerships, Paymentology
The global transition to cashless payments is moving fast, with transaction volumes projected to increase by more than 80% between 2020 and 2025, from about 1 trillion transactions to almost 1.9 trillion, and to almost triple by 2030.
In 2025, the ongoing shift from single payment networks to multi-rail payments ecosystems, enabling businesses to leverage a variety of payment methods simultaneously without extensive integration work, will be a key part of the ongoing acceleration in digital payments adoption.
By combining traditional credit cards, digital wallets, BNPL (Buy Now Pay Later) services, and real-time payments, businesses can offer customers a seamless, personalised experience without the need to integrate each payment product individually. This flexibility will drive growth, enabling companies to expand their customer base, access new markets, and cater to the diverse preferences of global customers.
As multi-rail systems become a standard component of payment strategies, they will unlock greater opportunities for both businesses and consumers in the increasingly cashless economy, paving the way for a truly interconnected global payments ecosystem.
