Payment Trends Small Businesses Need to Watch in 2025
2025 is coming up fast, and that means that it’s time to take a look at the future of our economy. Right now, we’re just starting to see a slew of new trends in the world of payment processing.
Even if you’re not in the finance world, it’s a smart idea to keep an eye out for what’s going on with the payments industry. Knowing new trends can help you save money on credit card payments, boost your profits, and also prevent lawsuits.
So, what will be hotter in 2025? Let’s take a look at what the future might hold…
More Contactless Payments
It’s no secret that contactless payments have been growing in popularity, especially after the COVID-19 pandemic hit. People are simply more aware of germs and hygiene today. Contactless payments keep things clean.
But, it’s more than just cleanliness. Convenience also matters. People find the idea of “tap to pay” products like Apple Pay, Google Pay, and wearable payment tech to be convenient. After all, it’s safe and takes less time than a typical traditional card would take.
The speed, convenience, and accessibility of contactless payments makes it a great pick for small businesses. Needless to say, it’s one of the fastest-growing payment preferences in America.
Buy Now, Pay Later Services
Did you ever have an item you desperately needed to buy, but couldn’t because you just didn’t have enough money in your bank account for it? If so, you understand why our cash-strapped world is so crazy about Buy Now, Pay Later (BNPL) servies.
BNPL allows customers to parse out payments into equal, low-to-no interest payments. It’s a microloan that is issued out to the customer specifically for use at your store. Studies show that BNPL can increase conversion rates by as much as 30 percent on average.
Imagine getting a third more orders, and you’ll see the appeal. This statistic is particularly pronounced with Gen Z and Millennial audiences, so if that’s your target audience, it might be time to opt for BNPL.
However, this option has its issues: specifically fraud, a chance of causing your store to get into debt, and credit-relate problems. Having a good fraud monitoring system and flagging system can help you mitigate those risks.
Cryptocurrency And Digital Currencies
Though it’s starting to slow down in terms of acceleration, more stores are continuing to accept cryptocurrencies like Bitcoin and Ethereum. This choice comes with risks due to extreme fluctuations in the value of crypto, not to mention the lack of bank backing.
A newer update to this trend is CBDCs, or Central Bank Digital Currencies. These are government-backed digital currencies that act as the digital form of regular fiat currency without being fiat. As of right now, the US government does not have a CBDC. However, that could change as the discourse around cybercurrency continues to evolve.
Most small businesses will find digital currencies to be expensive (and confusing) to implement. For many companies, it’s too risky to do. Of course, if the value of cryptocurrency skyrockets, any crypto your business earns could boost profits immensely.
Subscription-Based Billing Models
Does it feel like everyone is charging for subscriptions these days? It’s true. It’s an issue that many people decry. While subscription businesses have been around for the better part of 100 years, they haven’t ever been as popular as they are today—and for good reason.
Subscription-based billing is excellent for businesses that want to steady their income stream. Payments are automatically billed to a card every month. Since they have monthly payments, you get to keep customers longer and also get guaranteed repeat business until they cancel.
The hard part for many small businesses is finding the right tools to make subscription-based models work for them. If you are a soap maker or a small store, a site like Cratejoy might make it easier to get subscriptions.
If you have a unique model, you might want to try Chargebee, Stripe, or Recurly to manage your payments.
Instant Payments And Real-Time Transfers
Let’s face it—running a business can require a lot of money and sometimes, people don’t pay when they should. Accepting this type of payment method means you don’t have to wait for credit card payouts. The transfers are instant and directly to your bank.
This is a godsend for people who have businesses that struggle with cash flow issues. The best way to work with real-time transfers is to accept payments through Zelle, Venmo, PayPal, or a bank-driven RTP.
This payment method is particularly popular for small service businesses that are not quite ready for a payment terminal. For example, freelance writers, beginner handymen, and photographers are excellent candidates for instant payout tech.
Fraud Prevention And Cybersecurity
Unfortunately, not all trends in payments are happy. One of the worst economic crimes taking over the world is fraud. Fraudulent payments, scam artists, identity theft, and hacking have been increasingly common throughout the world.
Experts believe fraud will cost the world economy a total of $12 trillion in 2025 alone. That’s why beefing up cybersecurity and anti-fraud activity is a must. After all, it’s your money that will be lost if a fraudulent event occurs.
Tools are being rolled out to help small businesses protect themselves against scammers. EMV 3-D Secure is a new anti-fraud measure you will see in payment terminals which requires card users to identify themselves.
Of course, AI is quickly turning into the go-to front of cybersecurity. 8 out of 10 top fraud prevention firms intend on rolling out AI-based anti-fraud software. It’s a good idea to invest in this—or work with a processor who uses top tier anti-fraud measures.
Personalized Payment Experiences
Convenience is key with customers today, so it’s not surprising to hear that companies are working on creating streamlined, customized experiences for their clients. This includes things like payment flexibility.
Seamless payments that work online, in-store, and via mobile devices are now high in demand. Most other companies are also working on loyalty programs, customer profiles, and more to help segment their target audiences.
The good news is that companies (including Slice) make it easy to do this and include loyalty programs. This is excellent for small businesses, since loyalty programs alone can drive up sales by 20 percent or more.
Conclusion
The key to staying on trend with payments processing is simple: you need to offer more flexibility, convenience, and security than before. Having the right technology can help, but at the end of the day, it’s planning and understanding your clients that will help you make the best decisions for your business.
At Slice, we like to help people choose the right payment methods for their businesses. When in doubt, asking one of our professional counselors can help maximize your profits and boost your customer loyalty.