Digital wallets and Open Banking are set to dominate payments space in 2025, merchants tell payabl.
A recent survey of merchants conducted by payabl. flags digital wallets and Open Banking as pivotal forces set to transform the payments landscape in 2025.
payabl. conducted this research during MRC Amsterdam 2024 in October. The data was collected from 62 participants who operate within the e-commerce space in Europe, primarily merchants.
81% of merchants anticipate a surge in digital wallet usage, while 69% expect Open Banking and instant bank transfers to gain popularity as consumer demand for convenient, secure payment options continues to grow.
Other methods that merchants anticipate will become more popular include QR code payments (33%), BNPL options (25%), cryptocurrencies (21%) and CBDCs (11%).
The findings reflect an industry wide shift toward faster, more adaptable payment methods that meet consumer expectations in an increasingly digital economy. 59% of respondents noted that consumer demand for convenience is the top driver of innovation, followed by advances in technology (52%) and regulatory changes (49%), underscoring the competitive advantage of seamless, user-friendly payment solutions.
Merchants are responding to payment challenges with a focus on technology that supports both security and operational agility. 65% of merchants plan to invest in artificial intelligence (AI) over the next 12 months, recognising its role in real-time fraud detection and improved payment performance.
Additionally, 56% are adopting data analytics to gain critical insights into payment behaviour, while 38% prioritise API-based integrations to enhance flexibility and security in their payment ecosystems.
When asked about the top challenges expected for the year ahead, fraud prevention topped the list, with 63% of respondents identifying it as a primary concern. Following closely behind, regulatory compliance also emerged as a significant challenge, with 60% of participants highlighting the complexities of navigating evolving regulations.
Cybersecurity threats also ranked high, with 46% of respondents expressing concern over the increasing risks to payment systems.
In addition, the survey identified other challenges that are likely to impact the industry, including the integration of new technologies like AI (44%), and the ongoing complexities of cross-border payments (10%). Customer experience optimisation and cost management were also cited by 32% and 25% of respondents, respectively.
"Merchants are clearly focused on future-proofing their payments strategy to meet the growing demand for convenience and flexibility and address the major challenges around regulatory compliance and fraud prevention," says Ugne Buraciene, Group CEO at payabl.
"By aligning technology investments with these consumer expectations, they are not only boosting resilience but also paving the way for a sustainable, future ready ecosystem."
2024 RTIH INNOVATION AWARDS
payabl. is among the finalists at the sixth edition of the RTIH Innovation Awards, which are now closed for entries.
The awards, sponsored by Vista Technology Support, Scala, CADS, 3D Cloud, Brightpearl by Sage’s Lightning 50, Business France, and Retail Technology Show 2025, celebrate global tech innovation in a fast moving omnichannel world.
Key 2024 dates
Friday, 25th October: Award entry deadline
Tuesday, 29th October: 2024 shortlist revealed
30th October-6th November: Judging days
Thursday, 21st November: Winners announced at the 2024 RTIH Innovation Awards ceremony, to be held at RIBA’s 66 Portland Place HQ in Central London.
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