The payment landscape continues evolving rapidly, influenced by technological advancements and changing consumer behaviors. These changes present new threats to payments security and demand flexibility and innovation to ensure continued consumer trust.
This article explores the key trends shaping payment security in 2025. From advanced threat intelligence and biometrics to AI-driven fraud detection and API security, we’ll guide you through the technologies and strategies that will drive the future of secure and resilient payments networks.
The evolution of payments continues
The payments landscape is set to evolve significantly throughout 2025, with the emergence of innovative payment channels driven by advancements in technology and changing consumer expectations.
In 2025, we can expect digital payments to remain consumers’ preferred means of payment, with wider adoption of contactless payments (NFC), mobile wallets like Apple Pay and Google Pay and online payment platforms, while the decline of cash and traditional cards will continue.
Open banking and embedded finance solutions are driving innovation by enabling integration of payments into non-financial applications, enhancing convenience for consumers.
In March 2024, openbanking.org reported that 1 in 7 digital consumers had at least one active open banking connection or had made a payment using open banking. In addition, open banking for payments overtook its use for data sharing for the first time, most notably in January 2024 driven by the adoption of open banking payments by the UK tax authority, HMRC, for self assessment and corporation tax payments. In January 2024 in the UK alone, 5.4 million consumers and small businesses made at least one open banking payment.
Similar technology is driving innovation in so-called super apps – such as WeChat, Uber, Alipay, Revolut and more – that consolidate diverse functionalities, including payments, into centralized one-stop consumer platforms.
Enhanced authentication for payments
Central to the battle against cybercrime and payments fraud, we will see increasing adoption of enhanced authentication methods such as passkeys by organizations to enhance operational security. Consumers will adopt biometric and passkey authentication to access online accounts and for authorizing payment transactions through digital wallets and services such as open banking.
We anticipate continued growth in passwordless authentication driven by updates to guidelines from bodies such as NIST, which are encouraging businesses to adopt technologies like passkeys. PCI DSS, the standard governing cybersecurity for the payments industry and already prioritizing strong authentication practices, will leverage the advancements to help organizations meet and exceed compliance requirements.
AI and machine learning for fraud detection
AI and Machine Learning (ML) will revolutionize fraud detection, offering businesses advanced tools to identify and prevent fraudulent activities in real-time. With their ability to process vast amounts of data, AI and ML systems excel at identifying unusual spending patterns, detecting synthetic identity fraud and predicting future attacks.
A notable example of this trend is Mastercard's acquisition of Recorded Future in the latter half of 202, demonstrating the importance of integrating advanced threat intelligence capabilities into payments networks and setting new standards for the industry.
These technologies will become indispensable in the face of increasing synthetic identity fraud — the creation of fake identities using AI, combining real and fabricated information. In 2021 alone synthetic fraud resulted in over $182 million in losses for financial institutions in the US, tied to just 3,000 reported cases. Experts project that this will reach $5 billion by the end of 2024 and continue to grow throughout 2025, reflecting the growing sophistication and prevalence of this threat.
Emphasis on automation to secure payment infrastructure
The infrastructure supporting modern payment systems is increasingly under scrutiny as cyber-threats grow more advanced. Building a secure payment infrastructure requires adherence to secure coding practices, rigorous security testing and an ongoing commitment to vulnerability management.
While PCI DSS has established a baseline of requirements to protect sensitive payments information, organizations will face a barrage of new regulation and legislation to address the payment security risks, cybercrime and fraud inherent in our increasingly digital world.
Organizations will increasingly turn to automation to streamline their approach to compliance, while further enhancing operational security. These practices are rapidly becoming essential in maintaining consumer confidence and preventing breaches that could compromise sensitive payment data.
Why payment security in 2025 matters
Payment security in 2025 will be a decisive factor in maintaining consumer trust and ensuring business success. With the payments landscape evolving faster than ever, securing digital transactions is no longer optional and one-dimensional — it’s essential and multifaceted.
The world of digital transactions is brimming with potential, but staying ahead of payment security threats requires proactive measures. It is vital that organizations keep informed about novel and evolving payment security threats, adhere to the latest compliance standards and explore advanced technologies tailored to meet the complex demands of payment security in 2025 and beyond..
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