In the last ten years, the way we trade value has changed a lot. Mobile payment systems that let people pay directly from their smartphones, wearables, and other connected devices have mostly taken the place of credit and debit card payments. By 2025, all businesses will need to accept mobile payments. They are no longer just a nice thing to have. This will change everything, including banking, shopping, peer-to-peer transfers, cross-border remittances, and even city services. We’ll talk about the new trends that are causing this change, the forces that are shaping the market, and what consumers, merchants, and banks need to know to stay ahead of the game in this article.
The increase in payments made by phone
Early mobile payment systems were basic mobile wallets and SMS-based systems that came out in the middle of the 2000s. We can see a busy ecosystem today that has
- NFC (Near-Field Communication) is used by Apple Pay and Google Pay, which are two examples of tap-and-pay technologies.
- QR code payments became popular in China thanks to Alipay and WeChat Pay. Now they are used all over the world.
- Without any extra hardware, SoftPOS (Software Point-of-Sale) lets you use your phone as a card reader.
- Venmo, Cash App, and India’s UPI network are all examples of peer-to-peer (P2P) apps.
- Buy Now, Pay Later (BNPL) services are already available in mobile wallets and online stores.
- Central Bank Digital Currencies (CBDCs) are used in many countries.
These new ideas came about because people wanted their digital lives to be faster, safer, and easier to use.
How mobile payments work right now
- The market is getting bigger and more people are using it.
In 2022, mobile payments in the US were worth $53.5 billion. By 2030, they should be worth more than $607.9 billion.
Mobile payments make up more than half of all non-cash transactions in stores in China, India, and some parts of Europe.
The most recent study by Mastercard found that 73% of medium-sized businesses now offer payment options that are available right away, like RTP or FedNow. - What SoftPOS Does
SoftPOS solutions turn regular smartphones and tablets into secure payment terminals, so you don’t need any special hardware to use them. Here are some good things:- Small businesses can borrow money at lower rates.
- You can do business on the go at events, pop-ups, or curbside pickups if you have more mobility.
- Working with CRM and analytics tools to make interactions more personal.
In 2025, big changes will change how people pay with their phones.
- Security without passwords or other forms of biometric authentication
Fingerprint scanning, facial recognition, and even behavioral biometrics are becoming the most common ways to approve payments:- More secure: Less dependence on static PINs and passwords that can be stolen.
- Seamless UX: The checkout process goes faster because authentication happens almost right away.
- Regulatory alignment: In a lot of places, transactions worth a lot of money have to go through a lot of checks, like biometric ones.
- QR code payments can be sent anywhere in the world.
Chinese super-apps were the first to make QR-based payments popular, and now they are becoming more popular around the world.- Interoperability: Any app or bank that follows the rules can accept payments with standardized QR codes, like EMV® QR.
- Cost-effectiveness: Customers can check out without touching anything, and merchants don’t have to pay for POS hardware.
- Inclusivity: People with basic phones can still join in by sending QR codes that can be read by SMS.
- Payments between people (P2P) and payments for social things
P2P platforms are growing beyond just sending money:- Messaging apps now have features like splitting bills, sending “gifts,” and group payments that make it easier for people to get along.
- Instant settlement: Real-time clearing reduces float and reconciliations for both users and platforms.
- Cross-border P2P: Companies like Wise (formerly TransferWise) and Remitly send money almost instantly at competitive foreign exchange rates.
- Embedded finance and buy now, pay later (BNPL)
A lot of younger people like BNPL:- You can pay for things in installments at checkout with mobile e-commerce apps without paying any interest.
- This is built into digital wallets, which makes it easy to split payments without leaving the app of the merchant.
- Regulators in places like the EU and Australia are paying more attention. This makes disclosures clearer and gives consumers better protections.
- APIs for open banking and real-time payments
New rules for open banking (like PSD2 in Europe and Open Banking in the UK) and faster rails (like RTP, FedNow, and UPI) are changing how money moves:- You don’t have to use cards and chargebacks as much if you can move money between accounts right away.
- When you can share rich data through APIs, it’s easier to reconcile, score fraud, and keep an eye on risk in real time.
- Ride-hailing, food delivery, and travel apps can now take money directly from your bank account.
- Digital currencies from central banks (CBDCs)
Some countries are testing or starting to use digital fiat:- People from other countries can now use China’s digital yuan to buy things.
- Bahamas Sand Dollar helps people in island groups get to banks and other financial services.
- The EU’s digital euro and the U.S. Fed’s work on a digital dollar could make programmable features like smart contract triggers possible.
- Using AI and machine learning to stop fraud
As things get easier, fraud changes. We now use AI and machine learning to:- Keep an eye out for unusual patterns in transactions as they happen.
- Learn how to deal with new kinds of attacks, like synthetic identity fraud.
- Change the requirements for authentication on the fly to find the right balance between security and ease of use.
- Putting blockchain and decentralized finance (DeFi) together
Blockchain isn’t used for retail payments very often yet, but it does let- Records of transactions that can’t be changed so that they can be checked.
- Smart contracts that automatically take care of payments and escrow based on certain conditions.
- How well traditional financial systems can handle tokenized assets.
- Payments made with IoT and wearable tech
People don’t use their phones to pay anymore; they use their bodies:- Smartwatches and fitness bands that have NFC chips already in them.
- You can pay for gas, tolls, and drive-thrus right from your car.
- Smart speakers and home assistants let you buy things with voice commands.
- Built-in ecosystems and super apps
Paytm in India, Grab, and Gojek are all examples of super apps that let you pay for things, manage your money, shop, get around, and have fun all in one place.- One-stop digital ecosystems: People hardly ever leave the app to pay for rides, food, or bills.
- Integration of loyalty: Points and rewards add up quickly in the ecosystem.
- Personalization based on data: Cross-service insights let you make targeted offers and credit scores.
The Environment for Security and Regulation
As mobile payments become more popular, regulators are also paying more attention:
GDPR, CCPA, and other laws like them tell companies what to do with payment data.
Digital wallets and exchanges must follow stricter Know Your Customer (KYC) and Anti-Money Laundering (AML) rules.
Managing supplier risk: Banks and stores need to protect their FinTech partners from cyberattacks.
Being ready for emergencies: The Nordic central banks have recently stressed how important it is to have cash on hand as well as use digital payments.
People who are involved should think about the pros and cons.
People who buy things
You get convenience, speed, rewards, and safety without having to touch anything.
Worries about data privacy and being dependent on having access to devices
People who sell
Infrastructure costs are lower, and there are better ways to look at data.
Changes in who is in charge of fraud and how hard it is to integrate
Companies that handle cash
New ways to make money, API ecosystems, and data about customers
Following the rules and improving old systems
People in charge
Being able to follow things, back up new ideas, and make sure everyone is part of the economy
How to be open and still have money in the bank
Use a multichannel strategy: Tips and Things to Keep in Mind
To meet the needs of different customers, use NFC, QR codes, and direct bank debit options all together.
- Put the user experience and accessibility first
Users should be able to check out with just one click, get clear payment confirmations, and get help if they can’t see or move around well. - Take care of data
Use transactional data to make offers more personal, but make it easy for people to say yes or no. - Put money into safety and following the rules
Use AI-based fraud tools, do regular penetration tests, and keep up with changes to KYC and AML rules. - Make friends in the Forge ecosystem
To get more people online, work with tech vendors, FinTech companies, and even telcos, which people don’t usually think of as tech companies.
What Will Happen in the Future
The next step for mobile payments is to mix virtual reality with shopping that is tailored to you:
- Augmented Reality (AR) commerce: Picture being able to point your phone at something and pay for it right away in the AR interface.
- Voice and biometric “invisible” payments: checkouts that don’t slow down when something happens (like getting on a plane).
- Programmable money: CBDCs that let you set rules for when money is released, like automatically taking taxes out of your paycheck or giving you money back based on how loyal you are.
- Digital receipts that are good for the environment, options to offset carbon at checkout, and support for social impact investing are all examples of payments that are fair and good for the environment.
Central banks, tech companies, regulators, and end users will all need to work together to find the right balance between security, innovation, and ease of use for these changes to happen.
Questions that are often asked
Q1: Is it safe to use a phone to pay?
Yes, modern mobile payments use a number of security measures to keep both the transaction and the consumer’s information safe. These are tokenization, encryption, biometric authentication, and AI-powered fraud detection.
Q2: What’s the difference between a mobile wallet and a P2P payment app?
A mobile wallet stores your payment information, like cards, bank accounts, and CBDCs, so you can pay merchants directly. Most of the time, a P2P app is just for sending money from one person to another. But now, a lot of them also let you check out with a merchant and link your wallet.
Q3: Will cash ever stop being used?
More and more people are using digital payments, but cash is still very important for making sure everyone has access to money and is ready for emergencies. People in cash-based markets are even telling people to keep some cash on hand just in case something goes wrong.
Q4: What do open banking APIs mean for payments made on mobile devices?
With open banking APIs, third-party apps can start payments directly from a bank account instead of going through card networks. This makes transactions cheaper, speeds up settlement, and makes it easier to share data for better risk management.
Q5: Is it safe for people to buy things now and pay for them later?
BNPL can save you money and let you pay without interest if you do it right and follow the rules. People should know about late fees and how they could hurt their credit scores if they don’t pay them on time.
Last Thoughts
Mobile payment systems aren’t just a new idea anymore; they’re a big part of how economies work today. Biometrics, QR codes, CBDCs, and AI-powered fraud protection are just a few examples of new ideas that keep coming up quickly. Businesses, banks, regulators, and customers all need to keep up with the times and be able to change. Stakeholders can fully benefit from the mobile payment revolution and offer seamless, inclusive, and reliable financial services in 2025 and beyond by using multichannel strategies, putting user experience and security first, and working together across ecosystems.
References
- Lightspeed. “12 Payment Trends to Watch in 2025.” Lightspeed Blog, July 31, 2025. https://www.lightspeedhq.com/blog/new-payment-trends/
- Mastercard. “10 Top Payments Trends for 2025—and Beyond.” Mastercard Perspectives, October 2024. https://www.mastercard.com/news/perspectives/2024/10-top-payments-trends-for-2025-and-beyond/
- TechRadar. “I Am a Retailing Expert, and This Little Device Is Costing Retailers Worldwide Billions in Lost Sales.” TechRadar Pro, August 2, 2025. https://www.techradar.com/pro/i-am-a-retailing-expert-and-this-little-device-is-costing-retailers-worldwide-billions-in-lost-sales
- Citizens Bank. “2025 Payment Trends Survey.” Citizens Bank Insights. https://www.citizensbank.com/corporate-finance/insights/payment-trends-2025.aspx
- Deloitte. Shaping the Future of Payments: Trends and Insights for 2025. Deloitte Report, November 2024. https://www2.deloitte.com/content/dam/Deloitte/us/Documents/financial-services/us-shaping-the-future-of-payments-trends-and-insights-for-2025.pdf
- World Bank. “The Global Findex Database 2025.” World Bank Publications, July 2025. https://www.worldbank.org/en/publication/globalfindex
- The Guardian. “Back to Cash: Life without Money in Your Pocket Is Not the Utopia Sweden Hoped.” March 16, 2025. https://www.theguardian.com/technology/2025/mar/16/sweden-cash-digital-payments-electronic-banking-security
- LexisNexis Risk Solutions. “5 Payments Trends to Watch in 2025.” https://risk.lexisnexis.com/insights-resources/infographic/payments-trends
- PwC. “Payments 2025 and Beyond: Evolution to Revolution.” https://www.pwc.com/sg/en/financial-services/fintech/payments-2025-and-beyond.html
- Nexi Group. “The Future of Payments: 5 Key Trends for 2025.” February 2025. https://www.nexigroup.com/en/media-relations/news/2025/02/nexi-payment-trends-2025/