• Patrick Lemay, Head of Corporate Development at PayRetailers


• 10.12.2024 02:30 pm
#FutureOfFinance #DigitalPayments

CBDCs in 2025:

“As we move into 2025, the conversation around CBDCs will likely intensify, with countries continuing to explore their potential for transforming payment systems. China and the Bahamas have demonstrated the viability of CBDC pilots, and it’s likely we’ll see others follow. CBDCs offer the promise of enhanced financial inclusion and payment efficiency by providing stable, regulated alternatives to cryptocurrencies, which remain volatile and complex to integrate into mainstream systems.

“While challenges such as regulatory frameworks and consumer adoption persist, the evolution of CBDCs could simplify domestic and cross-border payments, reducing costs and settlement times. As the ecosystem grows, financial institutions may increasingly integrate CBDCs into their services, paving the way for more seamless and secure transactions globally.”

Biometric authentication in 2025:

“In 2025, biometric authentication is set to become more embedded in financial services, addressing the need for secure and convenient user experiences. Technologies like facial and fingerprint recognition are increasingly seen as reliable methods for identity verification, providing frictionless access to accounts and transactions.

“The trend toward multi-modal authentication, which combines various biometric methods, is expected to gain traction, further reducing fraud risks. However, global adoption remains in its early stages, with limited providers offering mature solutions. As biometrics become more prevalent, a strong emphasis on data privacy and compliance will be key for ensuring secure implementation and consumer trust.”

Open Banking in 2025:

“Open banking is poised to remain a significant driver of innovation in financial services in 2025. In regions like LATAM, solutions such as PIX and SPEI have showcased the potential to replace traditional payment methods by offering faster, more cost-effective alternatives, especially in markets with low credit card penetration.

“In Europe, the focus will likely shift to refining API standards and advancing regulations to improve integration and consumer protection. Open banking’s ability to enable secure data sharing across platforms is driving collaboration between banks, fintechs, and technology companies, fostering innovation and the development of personalised financial services. While adoption rates vary by region, open banking holds the potential to redefine how consumers and businesses interact with financial ecosystems.”