By Gloria MethriAs the FinTech industry marches into 2025, its trajectory is shaped by a convergence of innovation, consumer expectations, and regulatory frameworks. Insights from key voices at payabl., along with global trends, paint a dynamic picture of the year ahead. From embedded finance to artificial intelligence (AI), these forces are set to redefine the way businesses and consumers interact with financial services.Convenience-Driven Innovation in Consumer PaymentsThe demand for convenience will drive the most significant innovations in FinTech. Digital wallets and account-to-account (A2A) payments are expected to emerge as dominant payment methods, providing consumers with seamless and secure experiences. According to Ugne Buraciene, Group CEO of payabl., digital wallets will outpace alternatives like Buy Now, Pay Later (BNPL) and QR payments, solidifying their position as the preferred choice for consumers and merchants alike.AI will continue to lead the charge, but not as a mere FinTech trend. Instead, it will serve as a strategic tool for fraud detection, personalisation, and operational efficiency. However, Buraciene cautions that AI also equips fraudsters with new capabilities, urging businesses to adopt proactive and innovative measures to stay ahead.Instant payments are expected to rise in prominence, although the looming SEPA Instant deadline poses a readiness challenge for many. Meanwhile, fraud prevention will remain a critical focus, with regulators and businesses investing in consumer education and AI-powered defences.Expanding Horizon of Embedded FinanceEmbedded finance, while already gaining traction, is poised for exponential growth in 2025. Beyond payments, sectors like retail, hospitality, and even traditionally slower adopters like healthcare and construction are expected to integrate tailored financial services into their platforms. Access to capital for small businesses will be a standout segment, providing flexible, personalised lending solutions that traditional banks have often failed to deliver.For platforms, embedded finance will act as both a loyalty booster and a revenue driver. Those capable of delivering bespoke solutions to underserved industries will gain a competitive edge. As Buraciene highlights, the year ahead will be pivotal for platforms looking to harness the untapped potential of embedded finance.Open Banking’s Incremental ProgressOpen Banking adoption will remain sluggish, with a lack of scalable and compelling use cases limiting its mass-market appeal. Kristaps Zips, UK CEO of payabl., notes that 2025 might see Variable Recurring Payments (VRPs) emerge as a breakthrough use case. These flexible and secure payments could demonstrate the tangible benefits of Open Banking to businesses and consumers alike.However, trust issues and concerns about privacy and security will continue to hinder progress. Regulatory and industry collaboration will be critical to laying the foundation for broader adoption
Ven. Gen 10th, 2025
