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Five Key Payment Trends to Watch in 2025

News and announcements

Apr 1, 2025

4 min. read

James Irwin

Author

Revolutionary payment trends will advance in 2025 and the coming years. Here’s how you can make the most of these changes if you run a business or use payment services as an individual.

Key Takeaways

Trends like generative AI, embedded finance, and interoperability are improving the function and efficiency of payment services
Neobanks and alternative payments offer even more advantages
Choosing the right payment service can help you reap the benefits

2025 and beyond are expected to be game-changing years as payment trends that began in the first half of the decade continue to develop.

A new report from LexisNexis lists five major trends to watch for in the coming year. Here’s how they could impact your business and its access to payment services — and how you can make the most of the changing landscape.

1. Generative AI

Generative AI will continue to grow in popularity in the coming years.

You’re probably familiar with mainstream AI apps like ChatGPT, but the payments sector is also using generative AI to deliver enhanced features.

This includes functions like automated invoicing, payment processing, and fraud detection. And even if you don’t use AI-powered features directly, you might see lower costs and faster payments as overall efficiency improves.

How much growth can you expect? A several-fold increase. Precedence Research projects the generative AI financial services market will reach $13.3 billion in 2033, up from $1.2 billion in 2023.

2. Embedded Finance

Embedded finance is another trend that’s continually advancing.

The term refers to the seamless integration of financial services into everyday applications. This approach allows apps that are usually non-financial to provide access to payments, loans, investment, payroll management, and more

Juniper Research data indicates that embedded finance could handle $2.5 trillion in global transaction value by 2028 — up from $1.1 trillion in 2024.

As financial services increasingly engage with this area, businesses and consumers can expect to gain easier access to embedded finance.

3. Interoperability

Interoperability allows for connections between financial technologies, including by supporting systems like open banking and embedded finance.

Because interoperability allows for tightly connected applications, it provides a seamless customer experience across the platforms involved.

Plus, interoperability can help promote faster and cheaper payments thanks to improved efficiency and competition throughout the payment sector.

Industry demand is high. 71% of respondents believe that interoperability is very important for faster payments, according to a recent survey from Glenbrook. An additional 21% believe it is somewhat important, adding strength to the finding.

4. Alternative Payments

The public has more access to payment options than ever before — including digital wallets, buy now pay later (BNPL), and peer-to-peer (P2P) payments.

These and other services fall into the category of “alternative payments,” and they’re collectively driving users toward digital payments and away from cash.

Assorted data suggests that digital wallets will make up 61% of global transaction value in 2027, up from 49% in 2021.

Meanwhile, cash is declining: it will make up 11% of global transaction value in 2027, down from 20% six years earlier.

Alternative payment systems will allow businesses to accept a wider variety of payments and reach new markets. The trend is just as beneficial to customers, who will gain more control over how and where they spend their money.

5. Neobanks & EMIs

Neobanks, or online-only banking services, are breaking boundaries by allowing anyone in the world to obtain a financial account. EMIs (which do not offer credit like banks but rather facilitate online payments in multiple currencies and across borders) are seeing enormous growth.

These services often offer superior speed, fees, and customer experience compared to traditional options. EMIs in particular are leveraging new financial technologies like open banking and AI to transform the payment services industry. Customers can benefit directly by opting for these new services — or indirectly as older services add competing features.

Neobank dominance is set to grow, according to Grand View Research. It expects the market to see explosive growth, rising from $96 billion in 2023 to more than $2 trillion by 2030. That represents a 20x increase.

Payset, an EMI Keeping Pace With These Trends

Payset operates as a UK-based electronic money institution (EMI), offering online-first payment services and IBAN accounts to users around the world.

Take advantage of our services: send and receive money in over 180 countries, hold 34 currencies, and exchange 38 currency pairs in our built in FX exchange.

Plus, get competitive fees, fast transactions, top-tier customer support, and more.

A UK multi-currency account can streamline how you manage your finances. Whether for business or personal use, a multi-currency account provides you with added freedom and flexibility and removes barriers to payments and transfer methods.

Here is everything you need to know about UK multi-currency accounts.

A Payset UK multi-currency account is a single account with which you can hold, send, and receive funds in up to 38 currencies. This allows business or personal account holders to save endless time and money on foreign exchange, and money transfers, which from a traditional bank account would be far more expensive and slow.

From your personal UK-based IBAN account, you can transfer money to bank accounts around the world as well as send and receive free and instant transfers to and from other Payset clients. You can send funds using a diverse network of payment networks, including SWIFT, SEPA, Target2, Faster Payments, CHAPS, and more.

When you exchange funds from one currency to another, there are no margins added to our exchange rates and the fees are clearly displayed before you click send. If you, for example, work with multiple currencies, make purchases in other countries, travel frequently, invest in foreign currencies, pay staff in other countries, or receive payments in other currencies, a multi-currency account can save you time, money, and work compared to a traditional bank account.

There are lots of banking institutions and financial services that will aid you in opening a multi-currency account. Often they can allow you to convert and transfer a considerable number of currencies.

Before you open a UK multi-currency account with any platform or service, make sure you have explored all of the different options available to you and have found the best type of account to suit your financial needs.

How Does a UK Multi-Currency Account Work?

A UK multi-currency account works in the same way as a standard bank account or electronic wallet. Although the services provided will change depending on where you choose to open your account and who you choose to open the account with, all multi-currency accounts should allow you to:

Withdraw money

Send and receive payments in multiple currencies internationally

Access your funds for electronic transfers

Earn interest on your account total

In the same way that fees can occur with a standard bank account you may run into additional charges with a UK multi-currency account.

You could be charged for a number of actions including; making withdrawals, account opening and closure fees, transfer fees, and more.

The frequency or amount of these charges will often vary and if you ask your banking agency they will usually be able to tell you exactly how much you will be charged and which services you will be charged for before you open your account.

Alternative Options to Consider Before Opening a UK Multi-Currency Account

There are many alternatives to opening a UK multi-currency account. For example, there are also money transfer services and online electronic wallets such as Payset that allow you to send your money in over 34 currencies without the need for a UK multi-currency account. You can start sending money across the globe or in person today using your existing bank account.

Frequently asked questions

What is a UK multi-currency account/IBAN?

Are there limits to the amount of money I can send and receive with a UK multi currency account?

Which currencies can I send and receive in my UK multi currency account?

How do I add money to my UK multi currency account?

Types of UK Multi-Currency Accounts

Multi-currency IBAN accounts
Personal multi-currency accounts
Multi-currency accounts for business
Multi-currency cash passports
Multi-currency wallets

Information contained in this publication is provided for general education and information purposes only and should not be construed as legal, tax, investment or other professional advice or recommendation, or an offer of, or solicitation for, any transactions or any other actions (or refraining therefrom); This material has been prepared without taking into account any particular recipient’s financial objectives or situation. We make no warranty, guarantee or representation, whether express or implied, as to the completeness or accuracy of the information contained herein or fitness thereof for a particular purpose; Use of images and symbols is made for illustrative purposes only and does not constitute a recommendation or advice to take or refraining from any action; Use of brand logos does not necessarily imply a contractual relationship between us and the entities owning the logos, nor does it represent an endorsement of any such entity by Pay Set Limited, or vice versa; Market information is made available to you only as a service, and we do not endorse or approve it; Any reference to past performance, predicted returns, or likelihood performance scenarios may not reflect actual future performance and certainly do not guarantee future outcomes.