5 Consumer Payment Trends Shaping How We Pay in 2025

5 Trends Shaping How We Pay in 2025 

Payment technology innovations are revolutionizing shopping and money transfer experiences worldwide. As digital payment adoption accelerates, offering consumers the ability to use their preferred payment method remains the top driver of purchase decisions.¹

In the year ahead, digital wallets, biometrics, and advancements in fraud prevention will remain at the forefront of the payments landscape. Meanwhile, emerging trends such as the growth of instant payments and connected commerce are set to make a significant impact.

Here’s a closer look at five key trends that will shape the payments landscape in 2025.

1. Growing digital wallet adoption 

Seeking convenience and security, consumers continue to embrace digital wallets as a preferred way to pay. Up to 59% of consumers have used a digital wallet in the past 90 days according to the 2024 Discover® Global Network Payments State of the Union research.¹

The research shows that digital wallets are not yet a preferred method for in-store purchases. However, 29% of consumers prefer using digital wallets to pay online.¹ The growth in digital wallet usage suggests that merchants—particularly those engaged in eCommerce—would do well to integrate digital wallet support and ensure acceptance to stay relevant.

2. Desire for digital identity and biometrics

The Discover Global Network Payments State of the Union survey also found that consumers have a strong interest in digital identity because it reduces friction. The research shows that 67% of consumers are interested in the concept of digital identity.¹
 
One common way consumers are using digital identity for payments is through biometrics. According to the survey, 31%  of consumers have adopted biometric payments, and consumers want to use digital identity, including biometrics, to reduce friction in healthcare and government services like paying taxes—as well as when making online payments.

Biometric authentication and payment technology has grown quickly—both in market value and in user adoption. The global biometric market value—$39.12 billion in 2023—was predicted to reach $45.89 billion by the end of 2024.² Additionally, more than half of consumers reported using biometric authentication daily in 2024—citing that it feels the most secure.³ This demonstrates both widespread adoption and an increase in trust in biometrics over the past year.

As adoption continues to grow, enabling the use of digital identity in payments will become an important way to remove friction from consumer experiences while maintaining security.

3. A focus on fraud 

Another key finding from the survey was consumers’ high tolerance for added security steps when making a purchase. For example, 71% of Gen X consumers say they would be prepared to accept additional security measures at checkout¹

This finding comes at a time when fraud is a top concern for both consumers and business leaders, and with good reason—in 2024, fraudulent activity grew. Phishing was the leading type of attack with 31% of consumers worldwide being victims.¹
 
As fraud concerns remain top of mind, consumers continue to put most trust on banks for making digital payments. Additionally, 47% of consumers stated that receiving fraud alerts via text message from financial services would make their trust grow.¹

4. Widespread interest in instant payments  

One payment technology consumers have a growing interest in is instant payments. According to the Discover Global Network survey, 73% of consumers have adopted instant payments.¹

And now, 80% of consumers are interested in the instant payment use case of payouts from businesses in real-time such as refunds and 82% consumers are interested in the ability to pay bills and have them post to their account in real-time.¹ As 2025 progresses, industry leaders can expect this growing preference and interest in instant payments to shape consumer expectations. 

5. Connected commerce

Another emerging trend in the payments industry—and a key growing interest among consumers—is connected commerce. Although the technology is new, 73% stated they would feel comfortable tapping their card or phone onto a merchant's phone.¹
 
Additionally, over half of consumers are interested in connected commerce use cases, with 63% somewhat or very interested in paying for purchases automatically by walking out of the store. Buying items using a smart home device is also of interest for 57% of consumers.¹ Connected commerce technology will continue to advance in 2025, and the payments industry should prepare for it to go on gaining popularity among consumers.

Looking ahead

The payments landscape is transforming, shaped by the rise of digital wallets and biometrics, and advancements in fraud prevention—as well as the growth of instant payments and connected commerce.

With consumer preferences evolving and niche payment methods quickly reaching widespread use, it’s crucial to understand today’s trends and prepare for the innovations shaping tomorrow’s marketplace.

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1. 451 Research, part of S&P Global Market Intelligence Global Payments Survey, commissioned by Discover Global Network, Q1 2024.

2. The Business Research Company. (n.d.). Biometrics global market report. Retrieved 9 December 2024. 

3. Aware. (2024). New consumer report from Aware reveals widespread trust in biometrics. Retrieved 9 December 2024.

The information provided herein is sponsored by Discover® Global Network. It is intended for informational purposes, and is not intended as a substitute for professional advice.