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The Payments Playbook: 2024 Insights and Your 2025 Strategy for Success

2024 Payment Game-Changers

Real-Time Payments Take Centre Stage: FedNow Transforms the U.S. Landscape

The Federal Reserve’s FedNow Service has been officially live for a little over a year and currently has: 

  • Almost 1,200 participating institutions 
  • 34 settlement agents and liquidity providers 
  • 37 certified service providers 

The U.S. has entered the 24/7 instant payments sector full speed ahead. FedNow’s real-time capabilities have swiftly turned near-immediate settlements into the new normal, no longer the preserve of a few cutting-edge institutions. As the U.S. catches up to global peers, businesses are realising that catering to customers at midnight can be as impactful as premium perks—boosting loyalty and retention. 

Takeaway: Leveraging FedNow’s around-the-clock transactions can be a game-changer for high-exposure, high-revenue enterprises seeking an edge in a hyper-competitive market. 

Global Collaborations Drive the Next Era of Instant Payments

Frictionless cross-border payments are no longer the exclusive domain of digital-first unicorns, as established brands now harness internationally linked real-time networks like Singapore’s PayNow, India’s UPI (with 131 billion transactions in 2023-2024 alone), and Brazil’s PIX (42 billion transactions in 2023) to streamline global fund transfers. With nearly a third of the world already embracing faster payment schemes—and government-led initiatives driving direct connections between countries—enterprises can reach fresh markets without succumbing to compliance bottlenecks or operational drag. 

Takeaway: Global regulated online businesses that embed real-time, cross-border connectivity into their strategy stand to gain an edge in agility and customer confidence. 

CBDCs: Reimagining Public Money in a Digital Age

Central Bank Digital Currencies (“CBDCs”) are now at the centre of a global rethink of monetary systems, with the IMF underscoring their role in preserving monetary sovereignty and trust in an increasingly digital economy. While China leads the race, many countries remain cautious observers, recognising that simply launching a CBDC doesn’t guarantee swift adoption or a smooth transition. Designing robust cyber resilience, ensuring privacy, and adapting monetary policy tools are critical for success, especially when expanding usage across borders. Forward-thinking executives see CBDCs as a streamlined way to cut costs, reduce settlement times, and bolster trade relationships without adding cumbersome operational layers. 

Takeaway: Stay ahead of CBDC developments to be best positioned to harness new efficiencies and maintain a competitive edge in the shifting global financial landscape. Track the status of CBDCs globally from here. 

AI in Banking: Europe’s Regulatory Leap

Generative AI could unlock up to $340 billion in annual value for global banking—around 4.7 percent of industry revenues—and the EU’s new AI Act aims to capitalise on that potential. Coming fully into force 24 months after entry, with certain obligations applying sooner, these regulations demand robust oversight of high-risk systems and underscore data privacy, bias prevention, and transparency. Leaders eyeing growth can’t ignore that AI-driven analytics boost fraud detection, credit evaluations, and customer insights, fuelling scale without compromising reputations. 

Takeaway: Embracing Europe’s AI rules early can solidify both compliance and competitive advantage in an evolving financial ecosystem. 

Decoding the New Payment Rulebook

DORA: The EU’s Blueprint for Tech-Risk Resilience

Digital Operational Resilience Act (“DORA”) officially entered into force in January 2023 and becomes fully enforceable from 17th January 2025, unifying the rules for 20 financial entity types and their ICT third-party providers. Its delegated regulations move the industry beyond a passive approach to vendor oversight, nudging key players to stress-test their entire ecosystem for hidden vulnerabilities. Instead of improvising when crises strike, executives now face a clear directive to embed resilience into the core of their operation, reducing the risk of system shocks that drive customers away. 

Takeaway: Businesses should treat DORA as an opportunity to fortify operational resilience before catastrophic disruptions occur. 

PSD3: The Next Frontier of Payment Security and Open Finance

With the European Commission refining PSD2’s scope to address fast-evolving fintech and fraud tactics, PSD3 introduces advanced Strong Customer Authentication (SCA), stricter data-sharing protocols, and potential oversight for emerging payment types such as BNPL and crypto. By emphasising open finance, PSD3 compels leaders to combine cross-border compliance with robust fraud prevention, enabling them to harness real-time data and detect suspicious activities before they escalate. Embracing PSD3 early unlocks powerful, personalised services, deeper customer loyalty, and seamless digital experiences that blend technology with trust. (Source: Seon.io, PSD3: What Businesses Need to Know About the Payment Services Directive Update) 

Takeaway: Proactively align with PSD3’s enhanced security and data-sharing standards to reduce fraud rates and capture the vast benefits of open finance, along with safeguarding your business’s regulatory compliance. 

Basel III: Rewriting the Capital Playbook

Basel III, created to strengthen banking supervision, regulations and risk management, doesn’t simply ratchet up standards; it forces CEOs to revisit their risk models and recalibrate capital reserves with surgical precision. Under the proposed “endgame” framework, many banks could see risk-weighted assets jump by 24% (Category I and II) or 9% (Category III and IV), with final rules set to take effect as early as July 2025 and a three-year phase-in period until 2028 (source: PWC, Basel III endgame: Complete regulatory capital overhaul). Institutions that excel at this recalibration aren’t just ticking boxes, they’re building confidence among investors and regulators alike, ensuring that when others stumble under market turmoil, they remain robust and calm. 

Takeaway: Adapt swiftly to Basel III’s sweeping capital reforms to sustain resilience in the face of rising operational costs and evolving regulatory demands. 

MiCA: Europe’s Blueprint for Transparent Crypto Markets

Markets in Crypto-Assets Regulation (“MiCA”) flings open the gates for crypto-assets, no longer sidestepping in regulatory grey zones. In effect since June 2023, it features a phased timeline to finalise Level 2 and 3 measures—beginning with consultation packages in July and October 2023, followed by Q1 2024—and introduces transitional allowances until July 2026. European Securities and Markets Authority (“ESMA”), working closely with national regulators, aims to ensure a convergent approach to crypto-asset service provider authorisations. With Titles III and IV entering into application in June 2024 and the remaining Titles I, II, V, VI, VII following in December 2024, MiCA ultimately provides a structured path for both incumbents and newcomers to invest in tomorrow’s digital frontiers without stumbling over compliance pitfalls. (Source: ESMA, Markets in Crypto-Assets Regulation (MiCA)) 

Takeaway: Enterprises, especially those accepting crypto payments and issuing crypto payouts, that embrace MiCA’s transparent framework early can secure a valuable head start in the EU’s evolving digital-asset landscape. 

2025: Raising the Bar for Compliant and Secure Payments

DORA: Elevating Resilience to a Baseline Expectation

DORA’s official rollout in 2025 goes beyond nudging firms toward resilience—it enshrines robust digital operations as a must across the EU financial landscape. Under Regulation 2023/2554, critical third-party providers (CTPPs) fall under direct oversight from the European Supervisory Authorities (ESAs), which can request information, conduct on-site inspections, and impose penalties, supported by a staggered release of new technical standards ahead of the January 2025 application date (source: European Banking Authority, Digital Operational Resilience Act.) Forward-thinking executives who weave rigorous testing and bulletproof incident response into their core processes will be better prepared for any disruptive threat that blindsides the market. 

Takeaway: Organisations that embrace DORA’s unified oversight framework early will gain a decisive edge in maintaining operational continuity and trust. 

PSD3: The Next Evolution in Europe’s Payments Landscape

PSD3’s debut promises more fluid frameworks and simplified e-money rules, giving executives a chance to streamline operations and innovate with stronger consumer protections in mind. Building on PSD2’s strong customer authentication (SCA) and open banking strides, PSD3 raises the bar even further by tightening liability for unauthorised transactions and mandating more advanced fraud monitoring. Early adopters can seize this moment to implement robust, future-proof payment solutions—reducing fraud losses and liability while instilling greater trust among customers. 

Takeaway: Global enterprises that quickly align with PSD3’s stricter SCA standards and updated fraud protocols stand to enhance security, protect their brand, and lead the market in compliant, cutting-edge payment experiences. 

Instant Payments Regulation: A New Standard

The EU’s Instant Payments Regulation (IPR), adopted in March 2024, compels banks and non-bank PSPs across the eurozone to offer instant credit transfers at the same cost as standard transfers, with staggered implementation deadlines beginning January 2025 (source: European Central Bank, Instant Payments Regulation). Providers must also introduce payee verification services (VoP) and conduct daily sanctions checks, raising the industry bar from “fast if convenient” to “immediate as standard.” By fully embracing these requirements, top players can transform speed and transparency into a genuine competitive advantage, cutting costs and nurturing customer confidence with every lightning-fast, secure transaction. 

Takeaway: Businesses that prioritise instant settlement early will lock in trust and efficiency gains well before laggards catch up. 

A New Era of AML: High-Stakes Compliance and a Dedicated EU Authority

Tougher AML/CFT rules, anchored by the creation of the EU Authority for Anti-Money Laundering and Countering Terrorist Financing, the Anti-Money Laundering Authority  (“AMLA”), raise the bar for everyone by introducing direct supervision for high-risk cross-border financial activities. With AMLA set to be fully operational by 2028 (source: AMLA, About AMLA), C-level leaders who embrace these controls early aren’t just ticking compliance boxes—they’re preserving their brand’s integrity and building deeper trust with customers who demand transparency and safety. 

Takeaway: Align swiftly with AMLA’s framework to guard against financial crime and establish a strong foundation for sustainable growth. 

FIDA: Accelerating the Shift from Open Banking to Full-Scale Open Finance

Financial Data Access Regulation (“FIDA”) ushers in a broader data-sharing paradigm, compelling banks, insurers, and investment firms to share an expanded set of customer data with authorised third parties within 18 months of the regulation’s adoption. By granting customers a real-time dashboard to control permissions and providing scope for data monetisation, FIDA positions innovative institutions to create more customised offerings and integrated services than ever before. Forward-thinking leaders who treat customer data as an engine of personalised experiences and partner-based products can secure competitive advantages and spark lasting loyalty. 

Takeaway: Prepare early for FIDA’s cross-sector data exchange to be the first to unlock novel revenue streams and build truly customer-centric value propositions. 

Beyond Regulations: The New Frontiers of Payment Experiences

Growth of Instant Payments

In 2025, real-time payments will become indispensable, as the Federal Reserve’s migration to ISO 20022 boosts FedNow’s 24/7/365 adoption in the U.S., and the SEPA Instant Credit Transfer Scheme expands across Europe. Tackling fraud, security gaps, and cross-border frictions will demand cooperation between regulators and private-sector firms—think Visa—to bolster interoperability and keep innovation grounded in robust safeguards. 

Meanwhile, younger generations shun traditional credit tools in favour of always-available, real-time options, making round-the-clock settlement a baseline expectation rather than a perk. Ensuring domestic RTP networks remain open and interoperable is key to fostering global trade, building trust, and scaling at pace in a hyperconnected world. 

Takeaway: Invest in strong real-time payment capabilities and thrive, offering the instant, secure, and borderless experiences modern customers crave. 

Super Apps: Comprehensive Digital Ecosystems for Enhanced Engagement

Payment platforms like Klarna and Revolut aren’t stopping at the checkout; they’re evolving into super apps by integrating services such as banking, savings, and Buy Now Pay Later (BNPL) options. This transformation mirrors the success of WeChat in Asia, where consolidating multiple functionalities into a single platform has significantly boosted user retention and cross-selling opportunities. Leveraging technology that allows customers to make payments directly from their favourite apps without relying on traditional cards and intermediaries provides a competitive edge. As super apps are projected to spread globally by 2025, businesses that adopt this strategy early can capitalise on increased loyalty and streamlined operations. 

Takeaway: Developing super app capabilities or integrating with the major ones is essential to enhance customer loyalty and operational efficiency within a secure, integrated digital environment. 

A2A Payments: Competition for Traditional Card Networks

Capgemini’s latest report highlights that account-to-account (“A2A”) instant payments are set to disrupt traditional card networks significantly, potentially impacting card transaction growth by up to 25% (source: FinTech Magazine, Capgemini: A2A Payments Poised to Disrupt Card Networks.) This shift is driven by the rapid adoption of A2A solutions globally, with Latin America’s Pix leading the way and Europe modernizing payments through systems like BLIK and iDEAL. The report underscores the urgency for financial institutions to enhance their technological readiness to make the most of the burgeoning A2A payment trend and mitigate potential revenue losses from declining card usage. 

Takeaway: For regulated businesses, embracing A2A payments is crucial to stay competitive and ensure secure, efficient transactions in an evolving financial landscape. 

Strengthening Security and Enhancing Efficiency Through AI

AI’s integration into fraud detection, risk controls, and real-time transaction monitoring has transitioned from a technological advantage to a strategic necessity for businesses aiming to stay ahead of sophisticated criminals and competitive peers. In 2024, fraud attacks surged by 200% between Thanksgiving and Cyber Monday, largely fuelled by criminals leveraging AI to create deepfaked identities and sophisticated phishing schemes (source: Association for Financial Professionals, 3 Ways AI Will Impact the Payments World in 2025). In response, leading companies like Visa and Mastercard are deploying advanced AI tools—such as Visa’s Account Attack Intelligence Score (VAAI) and Mastercard’s generative AI systems—to intercept and prevent these threats, successfully stopping approximately 85% more fraud attempts compared to the previous year. As investment in AI-driven fintech continues to rise, forward-thinking leaders can bolster their defences, enhance operational efficiencies, and build trust at scale, ensuring robust and secure payment ecosystems. 

Takeaway: Leveraging AI in payment processing is critical to safeguard against evolving fraud threats and optimize operational efficiency in a secure, compliant manner. 

Enhanced Customer Payment Experience: A Key Differentiator in 2025

In 2025, effortless and dependable payment experiences will distinguish leading brands from their competitors, as customers are quick to switch over a single poor checkout experience. Leveraging advancements in AI and account-to-account (A2A) payment methods, merchants can invest in sleek, intuitive interfaces that not only streamline transactions but also enhance security and personalisation. By integrating AI-driven fraud prevention and utilising first-party data, businesses can build recognition and foster durable trust, turning each transaction into a relationship-strengthening moment. 

Takeaway: Prioritising secure and seamless payment experiences is essential to maintain customer trust and loyalty in a competitive and rapidly evolving marketplace. 

Cryptocurrency Revolutionizing E-Commerce

As stablecoins and advanced blockchain infrastructures mature, cross-border settlements are becoming significantly more secure and cost-effective, reducing the complexities and volatility traditionally associated with international transactions. In 2024, the approval of spot Exchange Traded-Funds (“ETFs”) and the dramatic increase in tokenization of financial products have further integrated cryptocurrencies into the global payments framework. Businesses that leverage these advancements can expand internationally with ease, bypassing clunky legacy systems and attracting a new breed of global customers. Additionally, with regulatory clarity improving globally and innovations in decentralized finance pushing the boundaries of blockchain technology, the e-commerce sector is poised to experience unprecedented growth and efficiency through cryptocurrency adoption. 

Takeaway: Integrating cryptocurrency into e-commerce strategies securely and within a regulated framework is essential to unlock global expansion, enhance transaction security, and stay ahead in a rapidly evolving financial landscape. 

Voice-Activated Payment Technology: Enhancing Convenience and Security

Voice-driven payments are set to revolutionize the payment landscape in 2025, streamlining purchases through everyday assistants like Alexa and elevating convenience to new heights. With advancements in artificial intelligence and natural language processing, voice-activated systems will offer more secure and intuitive interactions. Providers that master clear authentication methods, such as voice biometrics, and implement robust security protocols for voice transactions can win over customers who view hands-free payments as the next logical step in a connected world. Additionally, the integration of multi-modal interactions, combining voice commands with other inputs, will enhance user experience and accessibility, making voice payments more reliable and widely adopted. 

Takeaway: Secure and user-friendly voice-activated payment solutions meets growing demand for hands-free transactions. 

10 Action Points to consider that might Sharpen Your Edge in 2025

1. Adopt Real-Time and A2A Payment Solutions: Integrate solutions such as FedNow and other global instant payment systems to offer 24/7 transaction capabilities, enhancing customer satisfaction and expanding market reach. Examples of these are like PIX and UPI. 

2. Enhance AI-Driven Fraud Prevention: Invest in advanced AI tools for real-time fraud detection and risk management. Implement voice biometrics and AI-driven analytics to safeguard transactions and maintain regulatory compliance. 

3. Leverage Cryptocurrency for E-Commerce Expansion: Incorporate stablecoins and blockchain-based payment methods to streamline cross-border transactions, reduce costs, and attract a global customer base. Ensure alignment with evolving regulations such as MiCA. 

4. Prepare for Regulatory Compliance: Proactively align with upcoming regulations such as DORA, PSD3 and Basel III, as well as regulatory authorities such as  AMLA. Establish robust compliance frameworks and conduct regular audits to mitigate risks and maintain operational resilience. 

5. Develop or Integrate Super App Capabilities: Create comprehensive digital ecosystems by bundling multiple services (e.g., payments and banking) into a single user-friendly platform. Alternatively, partner with leading super apps to enhance user engagement and cross-selling opportunities. 

6. Implement Voice-Activated Payment Technologies: Deploy secure, voice-activated payment solutions with strong authentication measures. Enhance user experience by integrating multi-modal interactions, ensuring accessibility and reliability. 

7. Invest in Data Quality and AI Readiness: Prioritise clean, first-party data to fuel AI-driven personalisation and operational efficiencies. Train staff on AI tools and establish governance strategies to maximise AI’s potential while ensuring ethical use. 

8. Explore Central Bank Digital Currencies (CBDCs): Monitor CBDC developments and assess their impact on your payment infrastructure. Prepare to integrate CBDCs to enhance efficiency, reduce costs, and strengthen trade relationships. 

9. Foster Collaboration for Open Finance: Embrace FIDA’s data-sharing paradigms to create customised offerings and integrated services. Partner with authorised third parties to unlock new revenue streams and enhance customer-centric value propositions.

10. Strengthen Operational Resilience: Implement DORA’s guidelines to ensure robust digital operations. Conduct regular stress tests and develop comprehensive incident response plans to maintain continuity during disruptions. 

VIP Payments Ltd, registered in England and Wales no. 09841893 as a Small Payment Institution with the Financial Conduct Authority no. 750503, of 39 Fitzroy Square, London, W1T 6EZ, UK. VIP Payments is a member of the BLK Financial Group.

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