The way we pay for goods and services is constantly evolving, driven by advances in technology and changing consumer expectations.
As digital payments become increasingly integrated into everyday life, businesses face both opportunities and challenges in adapting to these trends. For consumers, it’s about convenience, speed, and security. For businesses, it’s about staying ahead of the curve to ensure competitive advantage.
From the steady decline of cash transactions to the rise of biometric authentication and AI-driven fraud prevention, payment systems in 2025 will continue to reshape how we shop, sell, and interact. Below are a few trends we can expect to see more of this year.
Secure payment methods
As online transactions soar – with almost all (96%) Australians shopping online and more than two-thirds (69%) making at least one online purchase each week – security concerns are at an all-time high. More than three-quarters (79%) of Australians are more worried about the safety of their data than they were a year ago, and with good reason. One in eight (12%) Aussies have lost money to scams, and 30% report they’ve been lured into visiting a fake website.
For businesses, offering trusted payment options isn’t just best practice – it’s crucial. A majority of consumers (59%) are more likely to complete a purchase online when their preferred payment method is available, and 73% say they trust PayPal to keep them safe. Businesses that prioritise security send a clear message of “we value your safety”, and when security comes first, trust and loyalty follow.
Biometric authentication
Say goodbye to remembering PINs and passwords or carrying physical cards around – biometric authentication is on the rise. Using physical traits such as fingerprints, facial recognition, and even iris scans, biometric authentication to enable payments is set to become a large part of the payment experience this year.
Unlike passwords or PINs, which can be forgotten, stolen, or hacked, biometric data is incredibly difficult to replicate or fake, making it one of the most secure forms of authentication.
For businesses, adopting a payment option that enables biometric authentication can reduce the risk of fraud and streamline the checkout experience, creating a win-win for all parties.
Ethical considerations
Despite the cost-of-living crisis, ethical considerations are still a decisive factor in how and where many Australians spend their money. Almost two-in-five Aussies (39%) factor ethics into their purchasing decisions, with this being particularly pronounced among Gen Z, where 51% say ethical issues influence their purchase choices.
Key concerns include fair treatment and wages for workers (22%), the environmental impact of the business (17%), and policies promoting diversity and inclusion (12%). Demonstrating responsible practices fosters stronger consumer loyalty and taps into the growing segment of value-driven shoppers, positioning businesses to thrive in an evolving payment landscape.
A seamless check-out experience
A smooth checkout is crucial for online businesses as consumers prefer transactions that are seamless, instant, and secure. Any delay or disruption in the payment process can quickly turn potential sales into abandoned carts. In fact, our research revealed 78% of Australians have abandoned a shopping cart with almost one-in-three (32%) stating it’s due to the purchase or payment process being too difficult.
Whether it’s streamlining the checkout process, integrating digital wallets, or ensuring secure and seamless transactions, businesses that simplify the payment experience gain a distinct advantage.
Money continues to digitise
The shift toward a cashless economy is accelerating, with our latest research revealing 22% of SMBs have stopped taking cash sales or never took cash in the first place, along with one-in-seven Australians (15%) having stopped using cash completely. Additionally, 73% of Australians do 80% or more of their spending digitally, with over half (56%) using cash for less than 10% of their total transactions.
This transition isn’t just about convenience, it’s about aligning with consumer behaviour. Digital wallets, contactless cards, and mobile-first payment options are becoming the norm, offering speed, security, and efficiency. For businesses, embracing cashless payments isn’t just about keeping up – it’s about staying relevant in a world that increasingly values frictionless, tech-driven solutions.
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