Emerging payment trends to watch in 2025

The payments landscape is constantly being shaped by consumer habits, technological advancements, and regulatory shifts. This year, we’re seeing some familiar trends, as well as emerging changes that will impact businesses and consumers alike.

Here’s a look at the key payment trends you need to watch in 2025:

1. We continue to change the way we pay

Debit card usage has been on an upward trajectory for several years, and 2025 is no different. Consumers are increasingly favouring the convenience and security of card payments over cash.

It’s worth noting that the decline in cash usage, while ongoing, has slowed since pre-2020. This shift suggests that while cash is still part of the payment ecosystem, its role is becoming more specialised, particularly for certain demographics or specific use cases like small transactions which is why our partnership with the Post Office Ltd , Payzone UK and PayPoint plc continues to provide real value to those reliant on cash within the UK Public sector.

2. Open Banking payments on the rise

One of the most noticeable growth areas in 2025 is open banking payments. As open banking solutions become more accessible and integrated into everyday banking apps, both consumers and businesses are starting to embrace this method for secure and fast transactions. Open banking payments allow users to pay directly from their bank account without needing to enter card details, making them a preferred option for many.

With the UK government pushing for greater innovation in payments, we can expect this trend to gain even more momentum. The future success of open banking payments - particularly commercial Variable Recurring Payments (cVRPs) - will depend heavily on how they are implemented. The Payment Systems Regulator has already begun gathering feedback from stakeholders on their phase 1 plans for expanding VRP, which will shape the rollout and adoption of these payments. The faster and more efficiently these solutions are integrated, the sooner we’ll see them as a dominant force in the payments industry.

3. Regulatory changes in 2025

The new Labour government is also expected to play a key role in shaping the regulatory landscape for payments.

While payment innovation is a priority, one of the most significant upcoming changes will be the implementation of the Renters' Rights Bill. Set to be enforced early this year, this bill will bring in sweeping changes to tenant rights, including the outlawing of Section 21 no-fault evictions. Although social landlords have been excluded from the current version of the bill, they will likely be addressed separately by the government in due course.

This legislative shift could indirectly impact the payments sector, particularly in the rental market, where property owners may seek out more flexible and automated payment solutions to manage rent collection in light of the new rules.

Looking ahead

Looking ahead, 2025 is shaping up to be a year of steady progress in payments. As businesses and consumers continue to move away from cash, the growth in debit card usage and open banking payments will open new opportunities for innovation and efficiency. At allpay Limited , we’re committed to staying at the forefront of these changes, offering solutions that help businesses navigate this evolving landscape with confidence. Whether it’s offering secure and flexible payment options or staying compliant with new regulations, allpay is here to help you make the most of 2025.

Stay tuned for more insights throughout the year!