Is 2025 the year payments go fully instant?

By Gloria Methri

As the financial world steps into 2025, the payments landscape is set for a transformation driven by open banking advancements, instant payments, and evolving merchant strategies.

With the introduction of PSD3, the rise of bank-led payment options, and the growing prominence of embedded finance, the stage is set for a year of innovation and disruption. These pivotal trends promise to redefine how businesses and consumers interact with financial services, setting the tone for a dynamic and resilient payments ecosystem.

PSD3: A Catalyst for Open Banking Adoption

The introduction of PSD3 is poised to redefine open banking, streamlining API performance, standardisation, and user experience. The changes promise to make open banking more seamless and accessible, paving the way for widespread adoption in 2025. This transformative framework is expected to enable smoother integrations and elevate user trust in open banking services, creating a fertile ground for innovation across Europe.

Merchants embrace bank-led payment options

Cost efficiency and speed are top priorities for merchants, and 2025 will witness a significant shift towards bank-led payment options, such as account-to-account payments. By adopting these solutions, merchants will benefit from quicker access to funds and more seamless cross-border transactions. These changes not only reduce transaction costs but also offer a streamlined payment experience, enhancing customer satisfaction.

Rise of Instant Payments

With eCommerce on a relentless growth trajectory, instant payments are emerging as a cornerstone of financial transactions.

Luke Trayfoot, Chief Commercial Officer at Brite Payments, emphasised their growing importance, saying, “Instant payments help merchants access funds quickly, enabling better cash flow management during critical sales periods. Consumers, in turn, benefit from a faster, more seamless shopping experience, making it indispensable in the digital age.”

As both consumers and businesses prioritise speed and efficiency, solutions like Pay by Bank are expected to dominate, further embedding instant payments into everyday financial activities.

Cybersecurity challenges loom large

Tamas Kadar, CEO and co-founder of SEON shed light on the evolving cybersecurity landscape. He predicts a rise in nation-state fraud, coupled with diminished national cyber defence investments. This creates an urgent need for businesses to strengthen their internal cybersecurity measures.

“With governments scaling back their involvement in third-party risk management, organisations must take greater responsibility for their cybersecurity,” Kadar stated. Companies will need to focus on reducing the storage of sensitive data, disclosing breaches more efficiently, and investing in advanced protective measures to navigate a rapidly evolving threat landscape.

Embedded Finance: The Future of FinTech

The integration of financial services into non-financial platforms is reshaping industries ranging from eCommerce to healthcare.

Nicolai Chamizo, Founder of Incore Invest, highlighted the transformative potential of embedded finance and said, “Consumers will access banking, lending, and insurance seamlessly through the apps and services they use daily. FinTech is not just driving innovation—it’s reshaping the future of finance to be smarter, more inclusive, and deeply aligned with tomorrow’s needs.”

Incore Invest plans to lead this transformation by supporting visionary entrepreneurs and businesses that embrace embedded finance solutions, promising a future where financial services are effortlessly woven into the fabric of everyday life.

The payments industry is on the cusp of a revolutionary year, with PSD3, instant payments, and embedded finance spearheading change. As businesses and consumers adapt to these advancements, the need for innovation and resilience will define the industry’s trajectory.