Every year, every day brings change, especially in the world of payments. To keep our members happy, credit unions need to stay ahead of the curve, be proactive, and ready to adapt. This begins with knowing what’s on the horizon. In 2025, expect more streamlined payment processes, tailored experiences, and cutting-edge tech to keep member information safe.
The rising popularity of digital wallets
More people and businesses are hopping on the digital wallet bandwagon thanks to this tool’s convenient flexibility. In fact, nearly half of all sales (in-person and online) will be made using digital wallets by 2027 according to WorldPay.
CBInsights points to the arrival of “super wallets” that will become a hub for just about anything financial related including budget management, digital banking, loans, and more!
To remain competitive, credit unions will need to partner with digital-based companies like fintechs and make sure their payment services are digital-wallet-friendly. This means using technology like tokenization to make credit union cards (credit, debit, and prepaid) work with digital wallets.
Credit unions need to support members in embracing these new digital resources. We can educate them on new digital offerings, like how to add their credit union payment cards to their digital wallets, while highlighting the unique benefits of using them.
The growing possibilities of open banking
Open banking is predicted to grow exponentially as its APIs unlock a new level of convenience and personalization for payments. Indeed, Kings Research suggests open banking will increase worldwide at a CAGR of more than 26% by 2030.
And that’s not all! Open banking is also fueling the growth of other innovative payment options including:
- Buy now, pay later (BNPL)
- QR code payments
- Real-time payments
- Account-to-account payments (A2A)
A2A payments conducted in real-time will especially stand out for their speed, reduced costs, extra layers of security, and multi-platform use.
Credit unions looking to broaden their payment services should consider creating open banking APIs or partnering with fintechs to offer members more easily accessible payment options.
Ramping up machine learning and artificial intelligence
Artificial intelligence (AI) and machine learning (ML) will be key players in 2025. They’ll be everywhere, from real-time fraud monitoring to helping credit unions understand member preferences for personalized service. AI and ML tools can also help credit unions operate more efficiently, better secure data and transactions, and keep up with compliance regulations. These tools will be a crucial in helping credit unions compete and ensure our services keep delighting members.
Data privacy and security: Keeping member information safe
With so much exciting, new technology emerging, a future-focused approach to data compliance and security is a must. In addition to technology like tokenization and AI, credit unions will need to equip their services with more advanced protections like encryption and biometric authentication. Credit unions should also consider keeping a close eye on proposed regulations within the United States as well as international data privacy rules that might influence their own operations in the future.
Conclusion
Payments trends for 2025 are about creating a more relevant, convenient and safer environment for consumers via advanced, interconnected digital technology. Credit unions can thrive and compete in this fast-changing environment by remaining updated on what’s ahead, as well as forging strong partnerships with CUSOs and fintechs.
Envisant, a NACUSO award-winning CUSO, is here to help! We offer credit unions a forward-thinking strategy for credit, debit, and prepaid cards, and we love partnering with innovative fintech companies. Want to learn more about how Envisant can help your credit union become an agile, member service champion? Check out our website at www.envisant.com.
