3 key trends shaping payment systems

Customers now demand seamless and rapid checkout experiences.

Businesses are confronted with the challenge of managing a delicate balance between conversion, risk, and cost as the payments industry continues to evolve, according to a recent report by Adyen.

The report said customers demand seamless and rapid checkout experiences. However, too much leniency in the process opens the door for increasingly sophisticated fraud attacks, fuelled by advanced technologies like artificial intelligence (AI).

Additionally, organisations are under pressure to optimise costs, innovate their payments infrastructure, and maintain consumer trust—all whilst keeping fraud at bay.

The report identified three key trends for businesses to stay competitive in this rapidly changing payments landscape.

First, it highlighted the importance of prioritising customer trust, particularly by managing the rise of fraud linked to new payment methods such as digital wallets.

“Retailers and the broader payments ecosystem must prioritize risk management of their transactions to build and maintain trust with customers whilst maintaining conversion rates,” the report said. “Failure to do so could result in significant business losses.”

Second, AI is emerging as a crucial tool for businesses seeking to reduce costs and enhance performance, particularly in the realm of payments. With the vast amounts of transaction data available, AI can help detect fraud more effectively and automate decision-making.

Lastly, the report noted that platform businesses, particularly those in SaaS and Banking-as-a-Service, are increasingly integrating payment solutions to boost revenue and customer retention, positioning themselves as central players in the evolving payment ecosystem.

“Businesses must adapt to the changing environment, using technology like AI to optimise their operations whilst steadfastly building trust with their customers,” it said.