How Will Online Payments Change in 2025? Exploring 3 Main Trends

The world of online payments continues to adapt as technology advances, consumer expectations rise, and the need for security strengthens.

Now that we have settled into 2025 and look to the future, there are expected to be some significant changes that transform digital payments as we know them.

As providers look to tighten up identity verification methods and introduce cryptocurrencies as an accepted payment method, this article will discuss three of the main trends that the year ahead is expected to bring.

The Use Of Biometrics For Identity Verification

Identity fraud is one of the main components of cybercrimes and was projected to cost approximately $9.5 trillion worldwide during 2024.

As consumers are becoming more aware of their online security, traditional verification methods such as passwords and PINs are proving to not be enough. As online scams and viruses become more and more advanced, fraudsters are learning how to hack into devices and override digital verifications.

Biometrics offer a higher level of security as they are unique to the owner of the account, only allowing authorized users to gain access. Authentication methods may consist of fingerprint scanning, facial recognition, or iris scanning. Since these are different for every person, they cannot be replicated and avoid the risk of a password or PIN being stolen.

During 2025, there is expected to be a big jump in the number of biometric systems being used for online payments. When it comes to the checkout process of an online transaction, instead of having to go through added layers of protection such as passwords or security questions, a user can rely on their physical features to pass security checks.

As well as improving security measures, biometric verification maximizes convenience for users. By allowing them to log into an account with a quick glance or placement of a finger, they can save time and avoid the hassle of recovering forgotten passwords. With the future of payments looking to use biometric authentication as standard, consumers can expect to get used to a much faster login process.

Cryptocurrencies To Become a Mainstream Payment Method

Although cryptocurrency has been around for over a decade, it has always been seen as a niche world that is too complex for most people. This is changing rapidly as of recent, with an estimated 41.2 million people now owning at least one type of cryptocurrency.

As we settle into 2025, it’s expected that we will start to see a rise in the number of businesses accepting cryptocurrencies as a legal form of tender. In addition to traditional payment types, customers will be able to use their cryptocurrencies both in-store and online at businesses that allow digital currencies.

With cryptocurrencies looking to become commonplace, there is likely to be a huge rise in the number of consumers who are looking to try them out for themselves. Offering benefits such as cheaper transaction fees, easier global purchases, and advanced security, digital currencies will become more accessible and start to become a part of everyday life.

Advanced AI To Protect From Fraudsters

Online criminals are continually finding new ways to tap into payment systems and steal the data of consumers. As banks and payment systems strive to evolve their online platforms to maximize security and protect customers, advanced technology is being implemented.

AI (artificial intelligence) is already being used in the payment industry and 2025 is looking to see an advancement in AI-driven fraud detection systems. Being used to quickly analyze vast amounts of data and flag any suspicious activity, fraudulent behavior can be identified and acted on before it impacts the customer.

To create a comprehensive defence system, AI can be integrated into existing security measures so the chance of fraudsters being able to succeed is slim. With AI continuing to analyze data, it can continually improve and spot any patterns, detecting potential issues that would be missed by traditional security systems.

This year, one of the most significant changes is expected to be the efficiency of online transactions. Before AI, any transactions which flagged fraud filters would be put on hold until an employee could physically investigate the matter. Now, AI is able to automate the process so the consumer can have a smoother experience.

The Future Of Online Payments Beyond 2025

The payment industry is one that continues to evolve at a rapid rate, providing an array of convenient payment options for consumers while finding new ways to keep our accounts secure.

As we get stuck into 2025, the rise of biometrics, cryptocurrencies, and AI are all expected to further transform the industry and improve the payment experience as we know it. As well as benefiting consumers, businesses are also able to overcome the barriers preventing customers from making a purchase by widening the payment options available.

With online payments continually becoming more advanced, businesses need to stay on top of the changes and navigate the evolving landscape to stay ahead of the trends and continue offering a first-class service.