In 2025, the fintech landscape will bring focus to user convenience and security with seamless account switching, the expansion of embedded finance, instant payments, and biometric authentication driving the progress.
January 6, 2025. As the financial industry continues to advance, several key trends are set to further embed fintech into our daily lives in 2025. Seamless account management, embedded finance in new sectors, growing demand for instant payments, and the rise of biometric authentication will shape the way businesses and consumers interact with financial services. Simas Simanauskas, Chief Business Officer at ConnectPay—an all-in-one financial platform for online businesses—provides a detailed look into these developments.
Seamless switching between financial services
In the coming year, financial service providers can be expected to improve the experience of toggling between payment methods, making it easier and more secure to select options like personal or business accounts, credit, such as Buy Now Pay Later (BNPL) effortlessly from a single point of access.
“Digital payment options have multiplied in recent years, with the rise of digital wallets and BNPL services. But making purchases from multiple sites in a single session can still be a tedious experience, as users are often required to re-login or re-enter the same card information for each transaction,” says Simanauskas. “By providing unified interfaces that allow for a seamless transition between accounts, financial service providers can create a much smoother purchasing experience that saves time and makes transactions more efficient.”
Some providers, like Visa, have already introduced systems that let users switch between different financial services with a single set of credentials, removing the hassle of managing multiple logins. This unified approach is expected to grow as more companies follow suit, as seen in ConnectPay’s recent launch of a simplified embedded finance solution that enables businesses to integrate multiple financial services into a single platform.
Embedded finance in unexpected sectors
Embedded finance continues to expand its reach, integrating financial services into non-financial platforms. This integration goes beyond e-commerce, with industries like healthcare and automotive now embedding payment, lending, and insurance services into their customer experiences.
“In 2025, we expect to see embedded finance making its mark in sectors where the potential to improve customer experience had been seen as minimal, from dynamic ticket pricing for sporting events to real-time insurance adjustments in healthcare,” says Simanauskas. “Such improvements are becoming more readily available as the banking sector and fintech companies upgrade their back-end processes and develop unique end-points for such instruments and digital wallets. The end result is more seamless integration for platforms and service providers.”
Fintech is especially expected to bridge the gap between sports and technology, as recent studies show that 60% of sports fans feel more connected to teams offering integrated payment systems in their mobile apps. “Modern fans are no longer just spectators – they want to participate actively in the sports community,” says Simanauskas. “Embedded payment solutions and data analytics enable seamless ticket purchases, personalized offerings to specific segments, and tailored loyalty programs. In 2025, this synergy will not only redefine fan interactions but also set new standards for monetization and audience connection in the sports industry.”
Notable examples include the Plug & Charge (ISO 15118) feature in the automotive sector, where electric vehicles automatically handle payment upon connection to a charging station, and Vitality‘s use of IoT data from wearable devices to offer real-time insurance pricing and discounts based on users’ health activities. These developments demonstrate how embedded finance is already enhancing customer experiences by making financial processes more integrated and intuitive. Looking ahead, as technology and consumer expectations continue to evolve, the potential applications and opportunities for embedded finance will only expand further.
Accelerating toward instant payments
The demand for instant payments is rising as consumers increasingly value speed and convenience in their transactions. Across regions, businesses are finding it essential to provide quick digital payment options not only to cater to consumer expectations but also to maintain a competitive edge.
“In the European context, cross-border payments have long been a subject of complexity and inefficiency, highlighting the need for faster and more streamlined processes,” Simanauskas says. “Next year will see fintech companies focusing on improving interoperability and efficient processing systems to address payment friction and delays.”
The trend toward instant payments is a global one, with many regions taking steps to enhance transaction speed and efficiency. In the United States, for example, PayPal’s Xoom service promises faster cross-border transactions and lower associated costs for worldwide money transfers. The U.S. company also recently announced plans to expand access to its “stablecoin” PayPal USD (PYUSD) to Asian and African markets. However, achieving instant payments universally remains challenging, given the complexity of maintaining security and regulatory compliance.
“Anti-fraud measures are essential for security, but they can lead to increased processing times, counteracting efforts to make transactions instant,” Simanauskas notes. “As fintech companies work towards balancing speed with robust security measures, they face the ongoing challenge of delivering solutions that provide both convenience and protection.”
Biometrics on the rise: password-free authentication
The ongoing shift towards biometric authentication will continue in 2025, with passwords and PINs being all but replaced by more seamless and secure methods like fingerprint access, facial recognition, and voice authentication.
“Biometrics represent a considerable step forward in making financial interactions both secure and user-friendly,” Simanauskas says. “This technology enables users to access accounts and perform transactions with a level of confidence that traditional methods simply cannot match.”
With the popularity of Apple Pay and Google Pay, biometrics are already proving their value in everyday transactions. Looking ahead, the integration of biometric-enabled wallets into government-issued IDs presents an opportunity to streamline verification processes across various platforms.
Companies like Mastercard are aiming to phase out passwords and manual card entry by 2030, while Visa and Tencent have introduced palm payment systems in Singapore, exemplifying the rapid advancements in biometric technologies. This trend indicates a future where security is robust yet unobtrusive, offering a smoother experience for consumers globally.
Overall, the fintech sector is continuing to evolve in the direction of more personalized access, with advancements in biometrics and account toggling leading the way. With embedded finance expanding beyond traditional boundaries and driving innovation across diverse industries, 2025 will bring a more integrated and consumer-centric financial ecosystem.
About ConnectPay
ConnectPay is an all-in-one financial platform for online businesses, offering embedded financial solutions with built-in compliance. Its wide range of modules include SEPA and SWIFT payments, multi-currency IBAN accounts, wallets, Banking-as-a-Service, white-label debit cards, and merchant services. All processes operate via a fraud prevention and compliance management ecosystem that includes KYC verification and AML/CTF monitoring. A smooth onboarding process, customized client solutions, and a single set of APIs enable businesses to utilize innovative payment solutions to meet the needs of their digital customers. ConnectPay holds an EMI license, issued by the Bank of Lithuania, and is a member of the monetary authority of the Eurozone.
