Fintech & Advanced Payments Report 2025

Investment Rating - The report does not explicitly provide an investment rating for the industry Core Insights - The payments sector is undergoing a significant transformation driven by advancements in technology, particularly generative AI, Central Bank Digital Currencies (CBDCs), and the Internet of Things (IoT) [5][6][24] - The report emphasizes the importance of balancing innovation, inclusion, and regulation to ensure secure and accessible advancements in the payments landscape [7] Summary by Sections Introduction - The report explores 14 key topics that highlight the latest trends in payments and fintech, aiming to provide insights into critical developments and opportunities [3][23] Emerging Technologies - Technologies such as AI, IoT, blockchain, and CBDCs are reshaping payment systems, enhancing security, efficiency, and financial inclusion [24][61] - The report notes that the adoption of Alternative Payment Methods (APMs) is also transforming transaction processes [24] Financial Services Inclusion and Innovations - Open banking and financial inclusion initiatives are driving innovation, particularly in underserved populations and emerging markets [25] - The report highlights the growth of peer-to-peer (P2P) remittances and insurtech as key areas for expanding access to financial services [25] Consumer Trends - Shifts in consumer preferences are prompting the industry to deliver more seamless and convenient payment solutions, particularly in e-commerce and the gig economy [26] - Despite a decline in cash usage, it is unlikely to become obsolete in the near future [26] Advanced Payments Survey Results - A survey conducted among 100 senior payments professionals revealed that 68% identified rising demand for instant payments as a key trend, while 61% noted the growing adoption of mobile payment solutions [31] - The survey also indicated that 88% of professionals expect increased demand for digital wallets over the next 1 to 3 years [31] Growth Verticals - Retail and e-commerce are projected to experience the fastest growth in digital payments, with 65% of respondents prioritizing these sectors [33] - International remittances (48%) and travel and hospitality (46%) are also expected to undergo substantial digital transformation [33] Emerging Payment Methods and Technologies - Instant payments (74%) and in-app payments (64%) are forecasted to see significant growth in the next 1-3 years [34] - Technologies such as open banking APIs (68%) and tokenization (57%) are deemed essential in today's market [34] Regional Innovation Hubs - The Asia-Pacific (APAC) region is expected to lead payment innovations over the next 3-5 years, with 50% of respondents identifying it as the top region [36] Security and Functionality in Mobile Banking Apps - Enhanced security features, such as advanced biometric authentication (63%), are driving the growth of mobile banking apps [39] Growth Trajectory - The industry's growth trajectory is closely tied to advancements in technology, consumer demand for convenience, and the development of secure, adaptable payment solutions [40] Blockchain's Expanding Influence - Blockchain technology enhances security, reduces costs, and expands financial inclusion, while also introducing new compliance and privacy challenges [61][64] - Major institutions are investing in blockchain to streamline payments and enhance transparency [64] Internet of Things (IoT) and Payments - IoT payments are expected to drive significant transaction volumes, with the market estimated to total $711 billion in 2024 [87] - The rise of IoT payments is set to redefine traditional checkout experiences by enabling seamless and invisible payments [88]