Top 5 in 2025: Payment Trends to Watch

Convenience is undoubtedly the currency of modern life, and nowhere is this more evident than in the area of payment solutions. Whether shopping online or in person, getting paid for gig work, or using loyalty points, consumers now expect transactions to be instant, effortless, and secure. A clunky payment process can quickly turn a potential sale into an abandoned cart, making convenience the driving force behind a successful customer experience.

This transformation is being fueled by two powerful forces: rapid technological advancements and shifting consumer behavior. Technology continues to evolve at breakneck speed, offering businesses cutting-edge tools to streamline payment processes. At the same time, consumer preferences are redefining expectations—instant gratification, mobile-first interactions, and frictionless experiences have become the norm. Once considered cutting-edge, innovations like embedded payments, digital wallets, and real-time transactions are now fundamental to the infrastructure of modern commerce.

For businesses, keeping up with these payment trends is an urgent priority. In a competitive market where convenience often determines loyalty, failing to prioritize modern payment solutions could mean losing customers to more agile competitors.

Read on to find out more about payment trends in 2025 and keep up-to-date with this ever-changing field.

Trend #1: Real-Time Payments

Real-time payments (RTP) are not new, but in 2025, they’re set to dominate the payment landscape like never before. With rising consumer expectations for instant gratification, businesses are no longer asking if they should adopt real-time payments but rather how quickly they can do it.

The industry is moving quickly to make real-time payments the norm, and here’s how businesses will drive this trend forward:

• Wider Adoption of Real-Time Payment Systems: Payment providers are investing in modernizing infrastructure to support 24/7/365 payment capabilities. According to recent data 85% of gig workers in the U.S. say they’d work more if paid faster, and many are even willing to pay for on-demand payouts. This demand is reshaping industries like ridesharing, freelance platforms, and even traditional employment sectors as companies look to attract and retain talent with faster access to wages.
• Focus on Accessibility: Real-time payment solutions are becoming more cost-effective, allowing smaller businesses to adopt them without breaking the bank. In 2025, expect real-time payments to move beyond large enterprises and into SMBs, further accelerating adoption.
• Enhanced Business Use Cases: Beyond consumer payments, businesses will leverage RTP for supplier payments, refunds, and internal payroll processes, streamlining cash flow and operational efficiency.

Trend #2: Encapsulated Payments

Encapsulated payments are the next big leap in payment technology, building on the foundation set by embedded payments. While embedded payments let users pay without leaving a platform—like settling an Uber ride directly in the app—encapsulated payments go further. By combining embedded functionality with open finance technology, they connect financial data from multiple sources, allowing platforms to offer a wider range of services alongside payments.

What makes encapsulated payments revolutionary is their ability to handle the entire payment lifecycle. This includes everything from invoicing and refunds to reconciliation and financial tracking within one seamless interface. For consumers, it means they can complete transactions without ever leaving an app. For businesses, it simplifies operations, reduces manual work, and makes processes more efficient.

These benefits highlight a major shift: payments are no longer isolated transactions. They’re one component of broader systems designed to make life easier for both businesses and their customers. In 2025, encapsulated payments will drive the following:

• Deeper Integration with Business Processes: Businesses will use encapsulated payments to streamline workflows. Automated reconciliation, real-time financial tracking, and other features will help create fully connected ecosystems.
• Better Customer Experiences: Encapsulated payments eliminate unnecessary steps, offering customers a smooth and frictionless experience. This is especially valuable in industries like subscription services, where users can access payment, management, and usage data in one place.
• Expansion Across Industries: While e-commerce and ride-sharing were early adopters, industries like property management, healthcare, and logistics are starting to embrace encapsulated payments for their efficiency and simplicity.
• Growth of Payment-as-a-Service Platforms: Businesses will increasingly partner with platforms that specialize in modular, plug-and-play solutions to enable encapsulated payments without building infrastructure from scratch.

Trend #3: Expansion of Buy Now, Pay Later (BNPL)

Buy Now, Pay Later (BNPL) will continue reshaping how consumers approach spending, offering fixed, often interest-free installments without revolving balances, annual fees, or complex interest rates. Integrated directly into purchases, BNPL provides a more transparent and accessible alternative to credit cards, appealing particularly to Gen Y and Z consumers who are wary of traditional credit and high-interest debt.

Rising costs of living have made it harder for many consumers to manage large, upfront expenses. BNPL offers a way to spread payments over time without incurring high-interest charges, providing relief for families managing tight budgets. For businesses, BNPL lowers barriers to purchase and increases average order values, making it a valuable tool for driving sales.

As BNPL expands, its applications are becoming more diverse, offering tailored solutions across industries:

• Daily Necessities: Utilities and groceries are seeing a surge in BNPL adoption, helping consumers manage recurring or unexpected costs. Last year, over 15 million Americans used BNPL to purchase groceries as families sought flexibility amid rising prices.
• Larger Expenses: BNPL is making essential services like automotive repairs and healthcare more accessible by spreading costs over time. This allows consumers to handle urgent needs without financial strain.
• Broader Applications: Beyond consumer use, BNPL is gaining traction in B2B transactions, where businesses can manage cash flow by deferring payments. Additionally, sectors like travel, education, and hospitality are integrating BNPL to make services more attainable.

Trend #4: AI-Driven Fraud Prevention

As hackers and fraudsters grow more sophisticated, businesses need equally advanced defenses to stay ahead. Traditional fraud detection systems, reliant on static rules and reactive processes, can no longer keep up with the ever-changing tactics of cybercriminals.

AI, however, is built to adapt. It analyzes patterns like login behaviors and device fingerprints to verify digital identities and tracks behavioral signals to flag suspicious activities, such as unexpected purchases or logins. Most importantly, it operates in real-time, identifying and blocking fraudulent activity before harm occurs. By continuously learning and responding, AI offers a proactive, intelligent defense against increasingly complex threats.

As businesses increasingly adopt AI, its role in fraud prevention is expected to expand further, with several key developments on the horizon:

• Integration with Payment Systems: AI fraud detection will become embedded in payment gateways and digital wallets, offering seamless protection at every transaction point. For example, digital wallets could detect unusual spending patterns and instantly alert users to potential threats.
• Enhanced Collaboration: Companies will collaborate across sectors to share data and insights, enabling AI systems to detect broader patterns of fraud and address industry-wide vulnerabilities.
• Focus on Privacy: With growing concerns about data privacy, businesses will adopt AI models that prioritize secure, anonymized data processing, ensuring compliance with regulations like GDPR.
• Proactive Security Measures: Businesses will shift from reactive fraud prevention to proactive strategies, using AI to predict vulnerabilities and address them before they’re exploited.

Trend #5: Digital Wallet Growth

Digital wallets act as virtual versions of physical wallets, storing payment methods, loyalty cards, tickets, and even personal identification securely on smartphones or other devices. Platforms like Apple Pay, Google Pay, and PayPal have led the way, enabling users to make payments with just a tap or scan.

According to research, digital wallets will account for more than 50% of global e-commerce transaction value by the end of 2025. 

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Digital wallets will expand their role across industries and reshape consumer behavior. Key developments include:

• Dominance in E-commerce: Digital wallets will become the go-to payment method for online shopping, offering fast, frictionless transactions. They’re expected to reduce cart abandonment by simplifying the checkout process and integrating loyalty rewards directly into payment systems.
• Social Commerce: As shopping through social media becomes mainstream, digital wallets will be essential for enabling instant, in-app transactions, offering a frictionless buying experience.
• Emergence of Super Apps: Digital wallets are transforming into multi-functional platforms or “super apps.” These will include mini-programs for purchasing products, booking services, and accessing exclusive promotions—all within a single app. This trend reflects consumer demand for one-stop solutions that integrate multiple functionalities seamlessly.
• Increased Role in Financial Inclusion: By providing accessible payment solutions, digital wallets will enable unbanked and underbanked populations to participate in the digital economy, particularly in developing regions.
• Expansion into Different Industries: Digital wallets are extending their reach beyond retail and e-commerce into new sectors. For example, in healthcare digital wallets will securely store medical records, insurance information, and payment methods, simplifying processes like billing and appointment management. In the travel sector, they will be used to consolidate bookings, boarding passes, hotel keys, and travel insurance into one platform, streamlining the entire journey and enhancing the travel experience.

Convenience, Agility, and Speed: Making Payments Frictionless in 2025

As 2025 begins, it’s clear that convenience will remain at the heart of consumer expectations. From seamless real-time payments to the growing integration of digital wallets and AI-driven fraud prevention, these trends are reshaping the payment landscape in profound ways. Businesses that embrace these changes will not only meet rising demands but also build stronger, more loyal customer relationships.

Berkeley Payments can help leverage these trends for business success. Contact us now to find out more.