Digital payments are on the rise around the world as the adoption of most forms of digital payments — via websites, apps or in-store platforms — continues to climb.
As we look ahead to 2025, the future of payments looks increasingly digital, flexible and driven by consumer choice. Contactless payments are giving consumers and merchants more ways to transact; biometrics are reducing our reliance on passwords and pins; and globalization is forcing change to complex and slow cross-border payments.
Meanwhile, artificial intelligence (AI) is helping to set new benchmarks for security and usability. Here are some key trends shaping 2025 payments.
1. AI guards against fraud
AI will play a crucial role in personalizing payment experiences and enhancing fraud detection capabilities, creating a profound impact on buyers and sellers. We can expect deep learning algorithms to become more sophisticated in analysing transaction patterns and identifying potential risks in real time.
For more than 30 years, Visa has been at the center of AI in payments, investing $3.3 billion in our AI and data infrastructure over the last decade. This year, we introduced three new AI-powered risk and fraud prevention solutions, as part of the Visa Protect suite, that are designed to reduce fraud across immediate A2A and card-not-present (CNP) payments, as well as transactions on and off Visa’s network.
Using AI responsibly is critical. We’ll continue to prioritize strengthening our AI governance initiatives in 2025 and beyond. That said, the potential for the next generation of AI to transform the payments ecosystem — making it safer, smarter, and more seamless — is vast and a critical factor for the success of payment companies and other industries in 2025 and beyond.
2. Contactless payments drive commerce
With consumers’ growing affinity for a cashless society, we can expect the integration of contactless-enabled transactions from merchants and consumers through tap-to-pay solutions and Near Field Communication technology (via smartphones, cards, or wearables) that leverage tokenization to set a new standard for secure, seamless and convenient payments. Visa’s Tap to Pay offers a seamless and efficient payment method for customers with Visa’s contactless chip cards or payment-enabled mobile/wearable devices. Each payment made over a contactless-enabled payment terminal is secured with a transaction-specific, one-time code that effectively counters fraud and unauthorized access.
Through Visa’s partnerships with merchants, increasingly customers within the region will be given the option to pay for their shopping with their cards, phones, watches and other devices that feature the EMVCo Contactless Indicator or symbol – delivering a more efficient and secure shopping experience.
3. Seamless business to business transactions
Business-to-business (B2B) payments are experiencing a significant transformation thanks to innovative solutions like Visa Spend Clarity and B2B Connect. Visa Spend Clarity provides enterprises with seamless visibility into operational expenses, including procurement, travel, and other employee-related costs. This not only enhances accountability but also reduces fraud. The solution integrates effortlessly with existing customer Enterprise Resource Planning (ERP), effectively addressing the common challenge of tracking expenses faced by many businesses in Nigeria.
B2B Connect revolutionizes cross-border payments by offering a fast, secure, and transparent method for global business transactions. By leveraging blockchain technology, B2B Connect simplifies the process and reduces the costs associated with traditional cross-border payments. This makes it a game-changer for businesses in Nigeria and beyond. With B2B Connect, payments for goods and services are delivered in full value, without deductions, on a same-day or next-day basis.
4. Digital identity simplifies authentication.
Passwords, security questions, and even card numbers have long stood in for individuals, and fraudsters have taken advantage of this fact. That’s changing. Now and increasingly in the future, authentication will more and more rely on highly secure credentials — your face, your fingerprints or other biometrics. This shift will enhance security and convenience, reducing reliance on traditional PINs and passwords. Products like Visa Payment Passkey do precisely that. For instance, Visa has partnered with QNB in Qatar to launch the enhanced version of Visa Click to Pay for retailers, marking the first implementation of biometric authentication in the world, and setting a new standard for secure, seamless and convenient online payments.
Centering biometric markers in payments authentication — and doing so in line with best data privacy, cybersecurity and AI governance practices — helps make the whole chain more convenient and more secure. More and more, the future of commerce has you at the center.
5. Inclusive fintech ecosystem growth
Fintech companies across West Africa continue to diversify their impact with solutions that enhance access, boost inclusion and unlock economic potential. With a vision to expand financial inclusion and innovation across West Africa, 2025 will witness an increase in collective efforts to bridge gaps in the fragmented payment ecosystem. Partnerships between fintech companies and traditional institutions will nurture innovation across the ecosystem through stronger and diverse infrastructural solutions that support end-users, merchants, customers, as well as economies.
6. Digital wallet adoption expands and diversifies
The payment ecosystem is gradually becoming saturated with diverse digital wallets and mobile savings platforms that eliminate the need for physical cards and cash – providing consumers with a seamless and convenient alternative to traditional payments.
As consumers seek streamlined transactions with lower costs and muti-currency offerings, digital wallets are emerging as an integral part of everyday financial transactions within the region. With an expected 37.6% growth in adoption in 2025, hybrid wallet solutions will also become critical in facilitating broader financial inclusion, improving cross-border transactions, and reshaping the financial services landscape in West Africa.
7. Embedded finance proliferates
Embedded finance is where third-party financial products and services are embedded into otherwise non-financial digital platforms. More and more, payment solutions are becoming integrated, particularly into the merchant ecosystem. We’re also seeing an uptick in embedded finance lending products and white-label embedded finance payment solutions.
When done right, it’s a four-way win: providers gain from low-cost distribution; enablers tap into demand for simplicity and convenience; distributors improve platform engagement — and most importantly, end-users get contextualized financial services in one place.
