The Big 2025 Predictions Round Up: What’s Going to Happen in Fintech Next Year?

What does the next year hold? In this year’s predictions round up we gather the experts to find out what they’re anticipating ahead of 2025. AI’s next chapter. Some movement in embedded finance. Crypto and blockchain growing up?

All the usual hot button topics are here and more, with some interestingly varied views on the biggest one of them all… Although surprisingly one topic has come up more than most: Security.

Anyone who thinks cybersecurity is a thing of the past, is poorly mistaken. There are arguably more threats than ever, and financial services needs to be ready. Below you can find predictions on what will take place in that area and more, in the world of financial services and fintech over the coming year.

Of course, there’s plenty of optimism but also a healthy dose of realism. As we reach a quarter of a way through a century, that has already seen historic levels of innovation, transformation and invention, there’s a sense of caution as we charge into the future. A slowdown in hype perhaps, as we discover what all this new technology can be used for. Will it make any money? Will it be helpful? Is it safe?

These experts seem to think we may get answers to those questions next year. What do you think?

Read on to get 2025 fintech predictions on:

• AI
• Embedded Finance
• Security
• Cryptocurrency
• Payments
• Open Banking

What does 2025 have in store for AI?

AI Will Become Boring (That’s a Good Thing)

“Generative AI has been the shiny object for two years now, but that’s about to change. There has been a lot of buzz around its potential problem-solving capabilities and the massive investment flowing into Generative AI startups. However, AI is already starting to become just another technology that solves targeted problems, requires hard work, extensive skills, and specialised capabilities to deploy.

“In short, AI will transition from being amazing and impractical, to being boring and impactful. Agentic AI will continue to be hyped as the next big thing that will replace most human tasks, but that won’t happen in 2025, if ever. Instead, organisations are setting their sights on a more practical variant of Agentic AI where AI automates narrow, highly controlled tasks – like getting a rebate on your delayed food delivery. The hottest part of AI in 2025 will be the boring, but valuable, topic of AI Engineering – how to integrate and govern the technology ecosystem needed to make AI solutions work.” – Kjell Carlsson, Head of AI Strategy, Domino Data Lab

AI will boost revenues

“In 2025, I expect we’ll see more financial services institutions take advantage of the revenue-driving benefits of AI, beyond just boosting productivity. The FinServ industry has generally been slow to adopt new tech given strict regulations but banks and card issuers that aren’t using AI to generate personalized marketing content are missing out on opportunities to deliver a more engaging CX and drive revenue. In fact, according to a recent report, consumers are ready for more AI-driven content with 75% of those in the study saying it’s acceptable for banks to use AI to help understand their needs and preferences.” – Assaf Baciu, President and Co-founder of Persado

AI winter could be coming

“This is the most exciting time to be working with AI. The emergence of LLM-based AI technology has fundamentally changed the way we interact with our data and each other. However, 2025 will be a year of tempered optimism as we begin to see the cracks in the ‘magic’ promised by large language models (LLMs); they are good at some tasks but cannot think, reason, or adapt to evolving threats in the ways many anticipated and hallucinate at higher rates than users may expect. This gap could very well lead to an ‘AI winter,’ where overblown expectations cool investor and developer enthusiasm.

“Moving forward, investment and effort should be placed in better understanding and solving particular use cases — not in trying to build overarching, monolithic solutions to all problems (or AGI).” – Craig Martell, CTO at Cohesity

Is 2025 the year Embedded Finance could take off?

Tailored Embedded Finance is way forward

“In 2025, we will see companies starting to understand what is best for them and their business when it comes to embedded solutions. For example, it wouldn’t make sense for a supermarket to offer vIBANs to clients, but if you’re an online store who only takes cards as payment method, providing a branded credit or debit card could add new revenue streams.

“As we support rail agnostic payments, we are seeing a lot more focussed and customised offerings within the market of embedded payments, lending, banking, insurance etc. I think this will continue to grow under the overall “Embedded Finance” badge.” – Barry O’Sullivan, Head of Banking and Payment Infrastructure – OpenPayd

Embedded finance driving long term growth

“Embedded finance will solidify its role as a tool for businesses aiming to provide seamless financial services that are not only fast and convenient but also drive long-term growth by enhancing user experience and fostering customer loyalty. With 8% of decision-makers planning adoption, the shift from being a revenue-generating tool to a strategic growth driver is clear.

“However, overcoming challenges like technical integration, scalability, and regulatory compliance will be critical. Businesses will increasingly turn to advanced APIs to simplify integration, invest in scalable cloud-based infrastructure, and partner with trusted technology providers who specialize in navigating complex regulatory landscapes.” – Ravi Adusumilli, Executive General Manager, Americas at Airwallex

What does Financial Services Security look like in 2025?

Less customer information means service providers under threat

“Retail in-store payments will continue to see a rise in the use of digital wallets and services such as Google Pay, Apple Pay, or Samsung Pay. This shift is also a shift to tokenization, with less merchant environments having access to actual credit card information.

“Fewer merchants are accepting cash payments, and more are increasing their use of Peer-to-Peer payment providers (Venmo, Apple Pay, PayPal, Zelle, etc). There will be breaches (as always), however, I believe threat actors will set their sights further up the supply chain to service providers, token providers, etc. as merchants have less access to sensitive credit card information.

“AI tools are evolving to enhance fraud detection in ecommerce, providing more accurate and real-time monitoring of transactions. Single-use virtual cards and merchants supporting 3DS authentication will also secure more transactions.” – Brent Johnson, Chief Information Security Officer at Bluefin

Quantum-resilient infrastructure is the next frontier in cybersecurity

“In the post-digital era, the importance of robust cybersecurity measures cannot be overstated. The advent of quantum computing poses significant risks to current encryption methods, necessitating a shift towards quantum-resilient security protocols. In 2025, financial institutions must prioritise enhancing cybersecurity measures to protect sensitive data and maintain customer trust. Collaborative efforts like the European Commission’s Quantum-Safe Financial Forum highlight the industry’s commitment to pre-emptively addressing these challenges.” – Niamh Kingsley, Head of Product Innovation & AI at Delta Capita

Digital ID will be key to attacking fraud threat

“In 2025, we’ll see the adoption of digital IDs and registries to combat fraud. Several US states are planning to launch mobile driver’s licenses (mDLs) in 2025 as is Hong Kong’s government. These reusable digital forms of ID verification will eliminate the need to constantly enter and re-enter credentials when performing different tasks online. A reusable identity profile issued by a trusted authority reconciles government and public data and other user behaviors, adding another layer of fraud defense for businesses and individuals. Biometric technology will also see increased use.” – Hubert Behaghel, CTO at Veriff

Banks will deploy passkeys at scale

“In 2025, we’ll see the first major banks roll out passkeys at scale, signalling a game-changing acceptance of passkeys in regulated industry. For organizations as security-conscious and naturally conservative as financial services, this adoption will mark a profound turning point – an endorsement that passkeys are not just more convenient for consumers, but also trusted at the highest level. Passkeys are a natural fit for delegated authentication models in payments, quickly verifying to merchants a payment and the user is authorized and legitimate. With passkeys, the need for extra authentication methods and reliance on traditional step-up security methods will ease.” – Andrew Shikiar, Executive Director and CEO, of The FIDO Alliance

What can we expect from Cryptocurrency and Blockchain in 2025?

More finance teams to go all-in on blockchain.

“In 2025 more finance teams will turn to blockchain for accurate financial transaction logging, reporting and analysis. So far, blockchain adoption in traditional businesses has been limited due to its complexity and a lack of specialised knowledge. However, there is a growing awareness of its advantages. In part, this is due to an acceptance that the benefits of blockchain extend beyond cryptocurrency and outweigh the perceived complexities.” – Sarah-Jayne Martin, Director of Financial Automation at Quadient

Cryptocurrency to grow in 2025.

“In 2025, we can expect cryptocurrency to grow significantly for a couple of reasons, primarily, macroeconomic and regulatory factors. Trump’s anticipated policies could provide support for the crypto market in the US, especially with global interest rates levelling off and potential investor interest in higher yields. Stripe’s acquisition of Bridge has already pushed stablecoins further into the mainstream, signalling stablecoins becoming a central part of the payment ecosystem.”

“Tokenization may be a less prominent theme but could revolutionise asset classes by allowing broader accessibility to investments. Additionally, clearer regulations may bring stability, encouraging more institutional involvement. As regulations build trust, major institutions and banks may feel more secure entering the crypto space. However, there is a risk that if the Trump administration does not fully support crypto as anticipated, the regulatory landscape may remain unpredictable.” – Lux Thiagarajah, Director of Growth at OpenPayd

Stablecoins to cement role as new global payment rail.

“Stablecoins have brought speed, transparency, and accessibility to payments that traditional systems can’t match. What started as a tool for crypto trading, has now become a mainstream payment rail. Around $17 trillion stablecoin transactions were made in 2024, with payments accounting for an estimated $5 trillion of those (that’s over a third of the volume processed by Visa). In 2025, we predict that global payments volume will continue to move on-chain. Stablecoin payments will surpass $8 trillion, cementing their place as a core global payment rail.”

“In 2024, we saw the rise of stablecoins mainly as a B2B payment rail, with PSPs and enterprises settling their international partners & merchants quickly in stablecoins. In 2025, we’ll see the rise of stablecoins as a global payout method for individuals: as marketplace platforms enable their international creators, sellers, hosts, and contractors to get paid faster in stablecoins.” – Chris Harmse, Co-Founder and Chief Business Officer at BVNK

Blockchain to unlock unprecedented liquidity.

“In 2025, crypto needs to focus on integration and accessibility. It’s no longer about disruption for its own sake; it’s about building scalable systems that complement traditional frameworks. Blockchain has to solve inefficiencies in payments, capital markets, and supply chains while remaining compliant and user-friendly. With Trump’s victory, I am aggressively bullish on the US becoming a global leader in the space by the end of the year.”

“Blockchain’s role in tokenizing real-world assets like real estate and carbon credits will unlock unprecedented liquidity, while advancements in payments will further streamline cross-border transfers.” – Raj Brahmbhatt, CEO and Founder of Zeebu

How will payments continue to evolve in 2025?

2025 will be the year of instant cash flow.

“In 2025, real-time payments will become the expected norm in business transactions, as the corporate world takes a leaf out of the consumer banking playbook. Companies, no longer content with waiting days for funds to clear, are demanding instant transfers to enhance cash flow across the credit-to-cash cycle. The rise of digital invoicing, automation, and advancements in payment infrastructure as well as Open Banking’s increasing popularity mean that delays will be seen as an avoidable friction.

“Reduced payment delays will also help to build stronger vendor relationships, smoother operations, and a more agile response to market changes.” – Sarah-Jayne Martin, Director of Financial Automation at Quadient

Adapting European payments for the influx of Asian travellers.

“QR code payments dominate in many Asian countries and territories like China, but card-based payments remain the standard in Europe. To accommodate a seamless payment experience for foreign visitors, enhancing accessibility of other modes of contactless payment is essential. With China expected to become the world’s leading source* of city-bound travellers by 2025, Europe is likely to see a rapid increase in contactless payment adoption, particularly in tourist-heavy areas.

“When it comes to transport, more European cities are embracing open-loop transit systems, allowing commuters to pay fares quickly, easily, and securely using their existing contactless cards or mobile payment apps. By implementing contactless payment systems, travellers can bypass the complexities of route maps, ticket machines and windows, allowing for a smoother and more enjoyable travel experience.” – Koya Sakuma, Executive Vice President of JCB International Co.

Compliance deadlines looming.

“While other parts of the world have made good progress on ISO 20022 adoption, there is pressure on US banks to meet two urgent deadlines: (1) March 10, 2025: the date that ISO 20022 becomes the universal digital language for US financial services, and (2) November 2025: the end of the Swift global co-existence period. Non-compliant banks may hope that the Federal Reserve and Swift will adjust these deadlines, but both institutions remain steadfast on their target dates. Any US FIs that underestimate the importance of leaving time for testing and roll-out across the whole ecosystem will suffer.” – Jessica Cheney, Vice President of Digital Banking Solutions and Head of Product Management, Bottomline

Linking payment rails bodes well for secure payments.

“Today’s customers expect fast, secure, and seamless cross-border payments, but inconsistent regulations on sanctions and anti-money laundering (AML) create major obstacles. Going forward, progress will depend on the standardization of legislation that supports interoperable systems and leverages real-time data, cloud technology, and ISO 20022 to enhance transaction speeds and security. A promising area of development is linking national instant payment schemes—such as USD and EUR corridors—using the shared ISO framework to foster faster and more seamless cross-border exchanges. In 2025, the focus must be on rapid cross-border rails that are also secure and cost-effective.” – Nadish Lad, Global Head of Product and Strategic Business at Volante Technologies

What does Open Banking look like in the year 2025?

Commercial VRPs will step into the light.

“We’re hopeful that 2025 will be the year commercial VRP breaks out, particularly for e-commerce. cVRP allows merchants to take payments directly from customer accounts, similar to Direct Debit and Card On File but with enhanced security and control. This benefits both businesses (lower fees, more efficiency) and consumers (stronger security, easier management). The UK government has called for the pilot of a commercially viable model for non-sweeping VRP in the recently published National Payments Vision, so we know the appetite is there. It’s now up to the regulators to create the right frameworks and incentives for banks to get on board.” – Stefano Vaccino, founder and CEO, Yapily

Reduction in errors will be more widely acknowledged.

“As we look towards 2025, the Open Banking sector is well-placed to harness new opportunities to drive faster, more seamless and secure payment experiences for consumers. The introduction of Variable Recurring Payments could become a reality – making it easier for consumers to set up recurring payments with flexible amounts and reducing processing fees for merchants.”

“With Pay with Bank Transfer, we are now seeing Open Banking used for bill payments for example, as well as the more traditional application of Open Banking payments in retail, as the control it gives to consumers when paying bills, and the reduction in payment errors for merchants, is more widely acknowledged. However, consumer research from Amex shows that understanding still needs to be built for wider engagement.” – Holly Coventry, Vice President, UK Sales, American Express

That’s all the 2025 fintech predictions we have time for. Read more great insights on our Thought Leadership page.