Five payment trends shaping tomorrow’s opportunities

The latest edition of HSBC’s Global Payment Trends explores the significant transformation in the payments landscape, driven by advancements in technology, the adoption of new digital business models, and upgrades in payment infrastructure. These innovations enable organisations to achieve their strategic objectives, streamline business processes, and enhance customer experience. As demand for seamless, real-time payment solutions grows, treasury teams have new opportunities to optimise cash management and improve working capital efficiency.

Key trends reshaping the global payments landscape include the rise of real-time payments and digital wallets, the evolution of commercial card solutions, and the progress of ISO 20022 migration, which is enhancing the efficiency of cross-border transactions. The growing adoption of digital commerce continues to drive an increase in international payments, supported by new platforms and partnerships. Together, these developments are creating a more interconnected, data-driven, and efficient payments ecosystem that supports evolving business models and drives growth opportunities.

Digitalisation is transforming commerce and society, driven by rapid technological advancements, evolving consumer behaviour, regulatory initiatives, and upgrades to banking and payment infrastructures. Businesses are adapting to this shift to stay competitive, with notable changes including:

• Adoption of Direct-to-Consumer (D2C) models: Companies are leveraging digital commerce as a strategic growth driver.
• Increased business connectivity: Growing demand for end-to-end payment solutions between businesses and their partners.
• Embedded payments: Financial services are increasingly integrated into client workflows and ecosystems.
• Cybersecurity and cost transparency: Businesses seek greater visibility over transaction costs, tracking and secure payment channels.
• Treasury digitalisation: Technology is enhancing cash flow forecasting and working capital management.

The opportunity for banks lies in providing integrated, end-to-end experiences where corporates can manage all their financial needs from a single interface. The rising adoption of the “Banking as a Service” model, where embedded payments are seamlessly accessible, is fuelling growth. This approach, with bank and FinTech partnerships at its core, creates powerful solutions that cater to evolving client needs.

The rapid growth of eCommerce has driven demand for digital payment solutions that offer flexibility and value across both Business-to-Consumer (B2C) and Business-to-Business (B2B) transactions. Companies are leveraging digital platforms to reach customers and strengthen supplier relationships. In the B2B space, key priorities include cost efficiency, ease of use, security, and seamless integration with treasury technology. Meanwhile, regional regulatory changes are fostering innovations such as real-time payments and open banking. Here we explore five emerging payment trends expected to drive significant growth in the coming years.

Trend 1: Rise of digital wallets and A2A payments on RTP rails

Digital wallets are becoming the preferred method for seamless payments in eCommerce, driven by smartphone adoption and central bank initiatives. APAC leads with wallets accounting for 50% of point-of-sale (POS) spend and 70% of overall spend, while uptake in Europe and North America is accelerating¹. In Southeast Asia and China, super apps are enhancing the eCommerce experience by integrating multiple services into a single platform, boosting customer engagement and loyalty.

Account-to-account (A2A) push and pull payments are also gaining traction as a low-cost, near-instant alternative to traditional methods, especially in emerging markets. Real-Time Payments (RTP) rails are crucial in supporting this growth, offering a fast, secure, and cost-effective payment method. APAC is a leader in RTP adoption², driving financial inclusion where credit card penetration is low. Direct connectivity to RTP rails is essential for businesses aiming to offer seamless digital experiences. A notable example is Bizum in Spain, an established mobile payment system enabling instant, universal payments across banks, transforming local markets.

Trend 2: Cross-border real time payment moving to centre stage

Cross-border real-time payments are increasingly in demand as customers expect the same real-time payment experience both domestically and internationally. This trend is driven by enhanced cross-border interoperability.

As an enhancement to the SEPAInst scheme live since 2017 the One-Leg Out (OLO) Instant Credit Transfer, launched at the end of 2023, allows Payment Service Providers to process instant cross-border transfers 24x7x365, with only one of the parties requiring to be part of the SEPA zone.

In Asia, Project Nexus, an initiative to develop an instant cross border payment system between Malaysia, Singapore, Philippines, Thailand and India, as well as, market players like Alipay+, are also creating integrated ecosystems by linking acquirers, PSPs, domestic wallets, and RTP rails. These will enable benefits such as enabling consumers to pay with a QR code when travelling.

Trend 3: Unlocking efficiency and security through virtual cards

Digital and virtual card payments are projected to grow by more than 250% by 2028³ as companies adopt automated platforms for accounts receivable and payable management. Virtual cards, a key component, help businesses streamline operations, extend payment terms, and optimise working capital while providing fraud prevention through tokenisation and spending controls.

Challenges remain, such as supplier acceptance of card payments and managing interchange costs. Payment facilitators can help by enabling card payments even when suppliers don’t directly accept them. In summary, commercial card solutions offer companies greater control and flexibility in managing expenses.

With APIs, businesses can embed card payments directly into their workflows, improving efficiency in cash application and invoice management. This integration simplifies processes and supports companies in achieving their sustainability goals.

Trend 4: Data enriched cross-border payments unlocked by ISO20022

The global transition to ISO 20022 standards is revolutionising payments by improving automation, interoperability, and efficiency. This migration aligns with G20 priorities and enables better customer experiences through enriched data, enhancing services such as payment reconciliation, prioritisation, and sanctions screening.

For treasury teams, preparation involves aligning technology with the new format, coordinating with enterprise resource planning (ERP) and treasury management system (TMS) providers, and ensuring data quality. Despite local variations and requirements, ISO 20022 lays the groundwork for advanced services. Supported by APIs, these advancements will improve fraud prevention, add immediacy of payments settlements and give priority to more critical payments.

Trend 5: Cross border payments serving globalisation

Globalisation, driven by rising global trade and digital platforms, is accelerating cross-border commerce in B2C, consumer-to-consumer (C2C), and B2B segments. The value of cross-border payments is projected to reach $250 trillion by 2027⁴, with a significant increase in low-value transactions.

HSBC is enhancing clients’ cross-border payment experience with value-added services such as pre-validation, upfront FX rate disclosures, and payment tracking. Where available, solutions like HSBC’s Multi Currency Pricing enable businesses to offer customers transparent, guaranteed FX rates, ensuring a seamless and localised e-commerce experience.

The convergence of treasury technology, new digital business models, and upgrades in the payment infrastructure presents significant opportunities for banks to support their clients to grow.

As global interoperability between payment platforms becomes a reality, businesses must reassess their operating models and technology investments to ensure they can scale effectively and support future growth. Banks now have the opportunity to reassess their strategies and form partnerships that enable them to deliver seamless and scalable solutions for their clients.

By offering actionable insights, international expertise, and innovative solutions, HSBC is helping companies transform their treasury functions and position themselves for future success.