The Fintech Frontier: What's Next in Digital Payments

Digital payments are no longer a novelty. Paying with a smartphone, transferring money by phone number, or receiving salaries to e-wallets has become the norm. Yet, even in this seemingly familiar field, major transformations continue. What will change in the coming years, and which technologies will shape the future of digital payments? Let’s explore.

All-in-One Platforms

Back in 2015, the most advanced solutions were NFC payments and one-time SMS codes. Today, digital wallets are evolving into full-fledged financial ecosystems. Apps with built-in wallets are transforming into “financial super apps,” where users can open savings accounts, get loans, send P2P transfers, and manage a wide range of financial operations — all in one interface.

The next phase is the further development of these super apps and the growth of their user base. In Southeast Asia, this trend is already gaining momentum — services like WeChat Pay offer everything from rideshares to crypto trading. In Europe, the CIS, and Latin America, fintech apps are actively moving in the same direction, integrating banking and non-banking services into a unified platform.

But that’s not all. In the near future, digital wallets may evolve into digital identity hubs — storing biometric data, digital signatures, and even access to government services.

Biometric Growth and AI Integration

A few years ago, paying with your face sounded like science fiction. Today, it's reality. Biometric technologies are rapidly spreading across the globe. In China, for example, you can pay at a store just by looking at a camera and smiling. In India and the UAE, fingerprint and facial recognition terminals are already common for confirming identity and authorizing payments, especially in high-traffic environments.

At the same time, artificial intelligence is becoming a key part of the payments ecosystem. Traditional players like Visa are catching up with digital trends by introducing smart systems like Visa Intelligence, which can detect suspicious transactions in real time, adjust spending limits to user behavior, and even automate purchases. AI also delivers personalized financial recommendations to help users manage their money smarter.

The Rise of Cryptocurrency Payments

Cryptocurrencies have evolved from a fringe concept to a functional payment tool. More people worldwide are now using crypto for everyday purchases — both online and offline. Global crypto usage has surged by 190% over the past few years. This is especially relevant in countries with unstable economies, where trust in traditional financial institutions is low. In some of these regions, crypto already accounts for up to 20% of all retail transactions, not for speculation, but for everyday spending like groceries.

What makes crypto attractive is its speed and low fees. It allows people to bypass banks and send money across borders with ease. Increasingly, physical stores and online platforms are accepting payments in Bitcoin, Ethereum, or stablecoins like USDT and USDC. For many merchants and buyers, it's simply more convenient. As a result, crypto payment processors are expanding rapidly, and demand for such services is only expected to grow.

More Than Just a Wallet

As cryptocurrency payments become more popular, the number of cryptocurrency wallets is also growing. A survey conducted by PassimPay in early 2025 among over 2,500 clients and users across various countries revealed that crypto wallets are no longer just for storage. Today, 45% of users engage in trading, 43% use them for yield-generating protocols, 38% for digital payments, and 36% for staking.

More users are tracking market trends and exploring new tokens directly through their wallets. Gen Z is especially active, making up 42% of all respondents. The use of crypto wallets also varies by region: in Southeast Asia, they’re primarily used for transfers; in Africa, for everyday payments; in Latin America — for mobile-based income strategies. Simply put, wallets are becoming gateways to the digital economy.

The End of Visa and Mastercard?

It’s too early to declare the end of traditional payment systems, especially as companies like Visa and Mastercard are evolving as well. However, their once-dominant position is being challenged. Several countries are developing local payment systems to replace international ones, such as RuPay in India and UnionPay in China. These systems meet domestic needs, while users increasingly turn to crypto for international transactions.

For cross-border payments, stablecoins are becoming a go-to solution, offering lower fees and faster transfers. More companies are adopting "crypto-in, fiat-out" models, where customers pay in crypto and merchants receive fiat currency. It’s a win-win for both businesses and users. In this new landscape, a return to traditional plastic cards seems unlikely — the market is now more diverse and dynamic than ever.

CBDCs: The State-Backed Digital Currencies

While some countries embrace cryptocurrencies, others are developing their own Central Bank Digital Currencies (CBDCs). These are digital versions of national currencies issued by central banks. Unlike crypto, CBDCs aren’t meant to replace fiat, but rather to bridge traditional finance with new fintech innovations. For example, China is actively testing the digital yuan, and the digital euro is under discussion within the EU.

CBDCs combine the speed and convenience of digital payments with the reliability and oversight of traditional financial systems. They offer instant transfers and improve financial transparency. With several pilot projects already underway, we can expect CBDCs to be rolled out more broadly in the coming years.

Who Will Win the Digital Payments Race?

One thing is clear: there’s no going back to the old model. The winners will be those who adapt quickly, offering flexibility, security, and a seamless user experience. People want more than just reliability, but convenience and control.

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