As 2025 approaches, the payment services industry stands at the crossroads of significant transformation. Emerging technologies, evolving consumer expectations, and regulatory changes are set to heavily influence the trajectory of the sector. From sustainability and ESG initiatives to the adoption of generative AI, virtual cards, and embedded finance, businesses must adapt to remain competitive.
This blog delves into the trends shaping the future of financial services, exploring insights from experts and the implications for businesses navigating the landscape.
Virtual cards that use Virtual Card Numbers (VCNs) have already made their mark across industries, offering businesses a streamlined, secure, and efficient alternative to traditional payment methods. The total volume of virtual card transactions is expected to reach 175 billion by 2028, with VCNs penetrating new sectors, including the insurance space. By enabling immediate funds disbursement, for claims payouts, virtual cards enhance the policyholder’s experience, while improving operational efficiency for the insurer. Their unique identifiers simplify reconciliation and auditing processes, reducing errors, and manual admin.
As industries increasingly demand seamless and secure payment solutions, virtual cards are emerging as a cornerstone of innovation, empowering businesses to modernise operations, optimise efficiency, and unlock new growth opportunities.
Virtual cards have the capability to give consumers instant access to funds at the point of service, eliminating upfront costs, paperwork, and delayed reimbursements. They’re proving to be a game-changing alternative for the insurance industry.
Vrush Sumanoharan, Product Marketing
Manager, Edenred Payment Solutions
Embedded finance is emerging as a game-changer for SaaS platforms targeting small and medium-sized businesses (SMBs). By embedding financial services such as accounts, payments, and cards directly into their platforms, SaaS providers can deliver seamless user experiences while gaining a competitive edge.
This trend reflects a growing demand for financial solutions that are convenient, fast, and deeply integrated into existing workflows. With platforms offering everything from embedded credit to expense management tools, businesses can optimise operations without needing to switch providers.
The UK financial services sector is poised for transformative regulatory changes in 2025, aimed at invigorating growth and fostering global competitiveness. The government's strategy emphasises creating a balance between upholding high standards and enabling innovation, addressing concerns that overly stringent post-crisis regulations have stifled risk-taking and economic dynamism.
A few of the expected measures include:
Green finance initiatives
The introduction of Sovereign Green Bonds to fund environmentally focused projects and mandatory climate-related financial disclosures for businesses by 2025 to align the financial sector with the UK’s net-zero ambitions. A green taxonomy will also help investors evaluate sustainability efforts more effectively.
Fintech leadership
The government is working on regulatory frameworks for stablecoins, enabling their secure use for payments, and exploring Central Bank Digital Currencies (CBDCs) to modernise financial infrastructure.
Improved listings and asset management
Efforts to reform the UK listings regime and funds framework are underway to attract innovative companies and investment. This includes consultations to support long-term investments in infrastructure and venture capital.
In 2025, the government’s reforms are expected to not only encourage fair competition within the sector but also position the UK as a more attractive destination for financial services investment and innovation. For businesses in this space, the rebalancing of regulations presents a timely opportunity to reassess strategies, embrace emerging trends, and expand their market presence.
As consumers become more environmentally conscious, sustainability and ESG (Environmental, Social, and Governance) will remain critical for banks and payment providers. Companies will face pressure to enhance transparency and adopt initiatives that align with greener practices.
From eco-friendly payment cards to carbon offset programs integrated into financial services, the industry will see increased collaboration with sustainability-focused fintechs.
There are big and small ways companies can do this, from eco-friendly cards to carbon offsetting programs.
Tangible changes to a businesses impact on the environment will be a priority, and the fintech industry needs to ensure there’s action in place.
Karine Martinez, Head of Sales
Edenred Payment Solutions
Open banking will continue its upward trajectory, further transforming how consumers and businesses manage payments. In 2024, the UK reached 10 million consumers and businesses regularly using Open Banking, benefiting from the streamlined, efficient options that this model enables.
A recent survey revealed that 81% of merchants anticipate a surge in digital wallet usage, while 69% expect Open Banking and instant bank transfers to gain popularity. Other methods that merchants anticipate will become more popular include QR code payments (33%), BNPL options (25%), and CBDCs (11%). These findings reflect an industry-wide shift toward broader digitalisation efforts and customer-centric strategies, to which merchants and financial institutions will need to adapt to meet consumers’ demands for convenience and transparency.
The rapid adoption of generative AI technologies will revolutionise financial services in 2025. These tools will streamline operations, enabling faster, more efficient decision-making while unlocking unprecedented levels of personalisation.
One of the most impactful applications of AI technology in financial services is its ability to detect suspicious activity with exceptional speed and precision. Advanced AI algorithms analyse vast amounts of transaction data in real time, identifying patterns and anomalies that may indicate fraudulent behaviour. This capability is critical in combating increasingly sophisticated fraud, much of which is often generated using AI itself. By staying one step ahead, AI not only protects consumers from potential financial losses, but also safeguards institutions from reputational and operational risks.
From refining risk assessment models to tailoring insurance products for specific customer needs, AI will reshape how businesses interact with consumers. Beyond automation, it will empower marketers, operational teams, and decision-makers to innovate and respond dynamically to market changes.
As the fintech landscape evolves, in 2025, marketing teams will require creativity, boldness, and a willingness to experiment to stand out.
To genuinely connect with audiences in an increasingly competitive market, fintech marketers must push the boundaries with creative ideas. For small teams often constrained by limited resources, leveraging AI tools can unlock new possibilities. Generative AI, for example, can handle routine tasks, freeing teams to focus on high-impact, creative projects.
B2B fintech marketing will need to break free from the rinse-and-repeat cycle of traditional strategies. To stand out, marketers will need to embrace fresh, creative ideas that push boundaries.
For many small teams, the struggle is real - limited time and resources mean all energy goes into getting things done. This is where technology can make a real difference - AI tools can take on the heavy lifting of repetitive tasks. In 2025, the fintech brands that use technology to spark creativity and rethink their approach will be the ones that truly stand out and connect with their audience. It’s time to swap the old playbook for something bold and exciting.
2025 will also mark a shift in the role of fintech marketers from behind-the-scenes support to recognised thought leaders. To achieve this, marketing professionals must deepen their industry expertise, engaging directly with trends, challenges, and emerging technologies.
For too long, marketers have leaned on others - sales teams, product leads, or external thought leaders - to drive industry insight. But the future demands more. Marketing needs to level up its understanding of the fintech landscape, becoming proactive in shaping the narrative.
This transformation starts with marketers immersing themselves in the industry. Engaging with in-house experts, staying on top of trends, and consuming and analysing the latest content will become essential skills. Organisations that get this right will see their marketing teams evolve into thought leaders who aren’t just amplifying others but leading the conversation themselves.
Raquel Soares, Head of Marketing
Edenred Payment Solutions
In 2025, the role of payments in retail will shift fundamentally from being a mere utility to becoming a critical enabler of enriched customer experiences. Payment solutions are increasingly embedded seamlessly into the customer journey, supporting trends like social commerce, BNPL, and loyalty programs. This evolution emphasises making financial services practically invisible yet indispensable, allowing consumers to focus on the overall experience rather than the mechanics of payment.
In this evolving landscape, the most successful payment providers will be those who prioritise convenience, speed, and security while remaining unobtrusive. By enabling businesses to blend payments into customer touchpoints effortlessly, these providers will support retailers in creating memorable shopping experiences, enhancing customer satisfaction, and driving loyalty.
The role of payments in retail is shifting from a utility to an enabler of experiences. Whether it’s social commerce, BNPL, or loyalty, the common thread is embedding financial services seamlessly into the customer journey.
By 2025, the best payment providers will be those who are practically invisible but absolutely indispensable.
Alec Donald, Retail Vertical Lead
Edenred Payment Solutions
The financial services landscape in 2025 will be defined by a confluence of technological innovation, regulatory reform, and a steadfast commitment to sustainability. From leveraging AI to simplifying payments with virtual cards and embracing embedded finance, the opportunities for growth and differentiation are vast.
However, success will hinge on the ability of businesses to adapt and lead. Whether through creative marketing, partnerships with ESG-focused fintechs, or embracing cutting-edge technologies, the industry has a clear mandate: to innovate and evolve in service of a more efficient, transparent, and sustainable financial future.
Read brand-new insights from our experts about what the future of payments may look like in the next decade.