What’s trending? Shaping payments with close collaboration

As technology develops so too has the way we pay for things. What were once complex transactions are now increasingly turning into effortless acts with hyper-personalisation becoming ever more prominent and enhanced security the basic expectation.

At this week’s Web Summit, we’re looking at some of the key trends and changes we think are driving the future of payments.

1. A token of appreciation
In a world where fraud is becoming increasingly sophisticated, tokenisation, the process of digitally representing real-world data to safeguard sensitive information, is now a key foundation of online transactions, enhancing security and driving business growth. Recently, Europe achieved a significant milestone: 50% of all e-commerce transactions are now secured through tokenisation¹.

The potential for tokenisation is huge. In 2023, when the token rate was at 36%, Europe saw incremental sales of $13B, and saving $150M in fraud. We forecast that if 100% of ecommerce transactions were 100% tokenised, on the same basis, incremental sales across Europe could be $36B and fraud savings could reach $424M².

2. One small click, one secure payment
Ecommerce has grown significantly, now matching face-to-face spending levels across Europe. However, 34% of European consumers still manually enter their card details at checkout³ - a practice that is not only vulnerable to fraud but disrupts the flow of the shopping experience, harming online sales. If the checkout process is inefficient, cart abandonment is more likely to occur.

Click to Pay revolutionises the efficiency of online checkouts enabling customers to pay with a few clicks using stored payment details. Currently live in 32 European markets and adopted by over 2,000 merchants, Click to Pay is enabled on 7.6 million cards⁴. Using Click to Pay at checkout increases the authorisation rate by 10% vs manual card entry⁴.
To drive even further value, simplifying the challenge of identity verification is key; and it can be done alongside Click to Pay. While Click to Pay delivers a unified experience across platforms, devices, and both physical and digital interactions it can be further enhanced through Payment Passkeys, which combine biometrics and digital identity to provide secure experiences across multiple devices. This enables buyers to authenticate online purchases using their biometrics, such as with their fingerprint or by facial recognition.

3. Personalised payments
Technology has transformed how people and communities connect, but the most effective services are personalised to meet unique needs. In fact, 73% of Gen Z consider personalisation to be a key factor when choosing their preferred brands⁶. However, many individuals still rely on fragmented payment methods - various cards, accounts, and apps - that don’t provide a comprehensive view of their finances.

Digital technology offers a way to simplify this: a single identity and credential can create a more cohesive online payment experience.

A singular credential that can transform one card into a versatile tool with access to multiple funding sources, and allow consumers to set personal preferences for how and when payments are made. In Japan, more than 3 million SMCC Olive account holders are already using this technology, with 70% taking advantage of the ability to switch between debit, credit, and prepaid options⁷. We're also excited that we've just announced plans to expand this flexible credential offering to the US and the UAE with our partners Affirm and Liv⁸.

When adopted more widely, these technologies can bring substantial benefits to the global economy. By personalising and streamlining payment experiences, they empower people to have greater financial control, boosting economic activity and enhancing financial inclusion.

4. Creators are our new small businesses
The rise of platforms and social media has fuelled a surge in sellers and nano-merchants, propelling the global creator economy, which is projected to reach $480 billion by 2027⁹. With over 50 million artists, musicians, and creators publishing content full- or part-time¹⁰, this new wave of micro-businesses presents a significant economic opportunity.
However, creators face many of the same challenges as traditional small and medium-sized businesses (SMBs), including quick access to working capital, navigating economic fluctuations, combating fraud, and managing increased competition. These hurdles can threaten their ability to grow and sustain themselves.

Clearly, the creator economy is here to stay, and to help it thrive creators must be recognised and supported as standalone businesses and provided with the tools to manage payments and access the same financial resources available to SMBs. That’s why Visa now recognises creators as small businesses, enabling them to pay and be paid in the same way as their more traditional peers.

Financial providers should invest in technologies and partnerships that empower creators, meeting their unique needs and driving innovation to support a more resilient and inclusive global economy.

5. Increased collaboration
New, trending technologies and emerging industries are reshaping how businesses and consumers prefer to buy and sell. Personalisation and security have become standard expectations, and competition has never been more prevalent.
But realising these advancements at scale requires collaboration among financial providers, technology firms, and businesses. By investing in secure, intuitive, and widely adopted payment solutions, we can create a more inclusive, efficient global economy.

The goal is clear: to empower individuals, drive commerce, and build trust through innovation. The future of payments is here, but the potential can only be realised through robust collaboration between technology providers, financial institutions, and businesses. By working together, new standards can be set for secure and effortless payment processes, driving widespread implementation and the resulting societal benefits.

Disclaimer: All projections are estimates and based on currently available data.