Visa Sees Embedded Finance Shaping Payments in Second Half of 2025

Consumers and businesses expect payments to be fast, seamless and secure, Visa Commercial Solutions SVP, Global Head of Commercial Product Gloria Colgan writes in a new PYMNTS eBook, “Halftime 2025: Charting the Future of Payments.”

As we look toward the second half of 2025, the payments industry is poised for unprecedented transformation, fueled by advances in instant payments, digital wallets and virtual cards. The convergence of these innovations, alongside emerging technologies, signals a new era where consumers and businesses expect payments to be not just fast, but also seamless, secure and intelligent. Here are key disruptive trends evolving to meet those expectations.

Embedded Finance

Embedded finance is rapidly reshaping the payments landscape by integrating financial services, especially payments, into a wide range of non-financial platforms. Whether ordering a ride, shopping online or booking a hotel, consumers increasingly expect payments to be invisible and frictionless. This shift enables businesses across sectors to offer more streamlined experiences and opens new opportunities for innovative partnerships and business models. The result is a more connected ecosystem, where payments are seamlessly embedded into users’ everyday digital activities.

Real-Time, Cross-Border Payments

As global commerce accelerates, so does the demand for real-time, cross-border payments. Businesses are expanding internationally, and consumers are transacting across borders more than ever. Innovations like blockchain, improved correspondent banking networks and the adoption of ISO 20022 messaging standards now make it possible to move money instantly and securely, around the clock. These advancements reduce settlement times, increase transparency and lower costs for both businesses and consumers. The ability to send and receive payments in real time, regardless of location, is quickly becoming the standard expectation in the global economy.

Tokenization and Enhanced Digital Security

With the mainstream adoption of digital wallets and virtual cards, tokenization has become a cornerstone of secure digital transactions. By replacing sensitive card details with unique digital identifiers, tokenization protects consumers from fraud and enables safer commerce across channels, including IoT devices and wearables. The payments industry is also investing heavily in advanced security measures, such as AI-driven fraud detection and biometric authentication, to stay ahead of evolving cyber threats. These technologies are critical for maintaining consumer trust and ensuring the integrity of digital payment ecosystems.

Artificial Intelligence, Agentic Systems and Personalization

Artificial intelligence, particularly agentic AI, is poised to further disrupt the payments industry by enabling hyper-personalized, context-aware experiences. From intelligent expense management to real-time fraud detection, AI and machine learning are making payments smarter, safer and more relevant for every user. Advanced analytics help merchants and financial institutions better understand customer behavior and preferences, allowing them to tailor offerings and improve satisfaction. The rise of generative AI is also transforming the nature of work — accelerating code development, enabling more intuitive user interfaces and allowing interaction with systems using natural language. As agentic and generative AI continue to evolve, their impact on the payments ecosystem will only grow, driving innovation and fundamentally changing how we work and interact.

Sustainable and Inclusive Payments

The next wave of disruption in payments is not just about technology — it’s also about impact. Sustainable payment solutions, such as digital receipts, carbon footprint tracking and eco-friendly virtual cards, are gaining traction among ethically conscious consumers and businesses. At the same time, efforts to promote financial inclusion ensure that the benefits of digital payments extend to underbanked and underserved populations. These initiatives help create a more equitable and sustainable global payments ecosystem, where everyone has access to secure, convenient and responsible financial services.

The Big Picture

The payments industry is experiencing rapid and profound change, driven by technological innovation and shifting consumer expectations. Industry leaders are responding by building scalable infrastructure, forming strategic partnerships and investing in next-generation AI technologies. As instant payments, digital wallets and virtual cards continue to redefine how money moves, the focus remains on making every transaction simple, secure and accessible — anytime and anywhere. The future of payments is digital, intelligent and inclusive, and the industry is rising to meet the challenge.