Fintech Predictions for 2025 – Pt.1

As we barrel towards 2025, FinTech Magazine rounds up a series of predictions from industry executives and influencers. 

In part one - we look at evolving trends in payments, personalisation and crypto.

But, perhaps it's Money20/20’s VP of Fintech Strategy, Zach Andersson Pettet, who provides the most candid assessment of what’s in store for next year…

Seriously, who the *F* knows what will happen in 2025

“We're living in the most mind-bending and fascinating time that has ever existed in the world. Technology is moving at a breakneck pace, regulation is sprinting to keep up, and our international political system has never been more volatile or candidly fascinating to watch. 

“Who the F knows is the punchline, but there's a lot of really, really fun nuance to watch unfold inside of that from the macroeconomy to global policy.”

Ripple’s UK and Europe Managing Director, Cassie Craddock, sees crypto’s expansion growing rapidly as more large financial institutions double down on their offerings…

Large financial institutions will double down on crypto offerings - but will need to seek out expert guidance to flourish 

“2024 marked a pivotal turning point for institutional interest in crypto and blockchain solutions. Major players are making bold moves. Asset managers like Blackrock and Abrdn are tokenising their money market funds, while SocGen FORGE has issued a euro-denominated stablecoin which will soon debut on the XRPL. 

“As we move into 2025, those financial institutions still waiting on the sidelines will realise that internal pilots alone won’t be sufficient to drive meaningful progress. Equally, the complexities of legacy banking systems demand more than their isolated efforts and to truly scale tokenisation solutions, collaboration will be key. 

“By working with advisors and seasoned industry partners, institutions can move beyond pilots, developing robust business cases, selecting and building on the best tools to scale their offerings, and ensuring compliance with emerging regulatory standards.”

Digital asset custody is becoming an essential for banks in 2025

“Digital asset custody is becoming a need-to-have, not a nice-to-have, which will be an essential component of any competitive banking offering. Embedding custody as a core service will act as a springboard for innovation in other blockchain-native solutions, such as trading or tokenised asset management, paving the way for further digital asset adoption. 

“To achieve this, we can expect to see banks favouring partnerships to accelerate implementation, but also to allow them to tap into specialised expertise in blockchain technology, security and compliance. Large financial institutions that invest early in custody solutions and collaborate effectively with third-party providers will be well-positioned to capture market share and build trust in the rapidly maturing sector.”

Over at Worldpay, Chief Product Officer Cindy Turner warns that merchants lacking in personalised payments options could see customer acquisition and retention rates tumble…

Merchants that lack payments personalisation could lose the interest of a third of customers

“While the benefits of personalised and localised payment methods have been long promoted, merchants that fail to offer both could see them lose the interest of up to 37% of prospective customers. 

“Heading into 2025, a single-channel approach is no longer sufficient for businesses looking to attract and retain customers, particularly across the global market.

“To personalise at scale and adopt a truly customer-centric strategy, leveraging payments data is key. This allows merchants to quickly identify areas of friction to make incremental changes and improve payment journeys – it’s rarely about a complete overhaul. 

“At the same time, data enables the anticipation of customer preference, whether it’s the need to offer local currencies or accept burgeoning methods, like account-to-account (A2A), in specific markets. A strategy that accounts for these preferences then needs to be unified and optimised across all channels – both online and in physical locations. 

“The risk of transaction abandonment is a very real eventuality if this isn’t addressed, but with a support network of experts in payments, creating truly localised and personalised payment experiences is more than achievable.”

Payment security: the need to build the walls high enough

“Fraudsters techniques are more sophisticated than ever. With £1.17 billion lost to fraud last year, it’s no wonder that consumers are trying to better protect themselves too, as 43% now choose security as a key factor for selecting a payment option. 

“This is further illustrated in the global meteoric rise of digital wallets, which feature two-factor (2FA) and biometric authentication, offering more security and reassurance to consumers.

“In 2025, while businesses’ knee-jerk reaction to combatting against rising fraud may be to maximise payments security, this must be done with a clear and proportionate strategy in mind. 

“Building the walls too high can have a negative knock-on effect as legitimate transactions may be rejected, so merchants must strike the right security balance. With the support of ecosystem partners, holistic security strategies can encompass small enhancements that can go a long way in improving security measures and reassuring customers at the same time. 

“For example, notifying customers that their transaction has been successful, or visually confirming that secure measures are in place with lock symbols.

“What makes a trusted payments journey varies between markets, so it’s important to consider what measures make consumers feel like a safe transaction is being facilitated. 

“Fundamentally, building strong defences against fraudsters and managing risk more effectively, without adding friction into the customer experience, will be business-critical in the next 12 months and beyond.” 

Elsewhere, Worldpay’s Head of Enterprise Product, James Fry, notes the careful balancing act of payment method acceptance in 2025…

To cash or not to cash? Balancing payment method acceptance in 2025 and beyond

“While cash continues to be relevant for billions globally, particularly during periods of economic uncertainty, its usage is in decline. In the UK, only 8% of adults report using cash exclusively, while 76% carry cash only as a backup for emergencies.

“Simultaneously, cashless approaches are making strides across the UK. Contactless methods dominate in-store payments, with growing adoption even among frequent cash users. 

“BNPL usage has also surged, now accounting for 4% of global e-commerce transaction value in 2023—equivalent to over US$316bn—and is projected to reach 5% by 2027, exceeding US$452bn.

“More than ever, as the payments market evolves, businesses must balance this shift with equity and choice. Offering diverse payment options is essential to ensuring that all consumer needs are met while supporting the continued rise of cashless methods. 

“In 2025 and beyond, companies will need to adapt to this transition, innovating to remain competitive in a rapidly changing landscape while also ensuring they don’t overlook more traditional methods that may be declining, but that are important to many still.”

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