At the recent Visa Payment Forum CEMEA, thought leaders, innovators, and partners from across Central and Eastern Europe, the Middle East, and Africa convened to explore the forces reshaping how people and businesses transact. From cutting-edge technologies to inclusive financial strategies, the forum highlighted the innovations driving a more connected, secure, and efficient payments ecosystem.
This article delves into the top 10 trends redefining the payments landscape in 2025. These trends reflect the evolving expectations of consumers, the strategic priorities of financial institutions, and the operational needs of businesses. From the rise of digital wallets and open banking to the integration of generative AI and advanced fraud prevention, the payments sector is embracing a future defined by speed, personalization, and resilience.
Rise of Alternative Payment Methods
A defining characteristic of the modern payments landscape is the rapid emergence of alternative payment methods. Digital payments that bypass traditional card credentials are gaining traction, leveraging real-time payments (RTPs), account-to-account (A2A) transfers, open banking payments, and local consumer wallets. These methods promise faster, more secure, and cost-effective solutions, potentially streamlining transactions for merchants, optimizing operations for financial institutions (FIs), and enhancing the overall customer experience.
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Catering to Affluent Consumers
The affluent consumer segment remains a significant and profitable growth area for businesses. Kenya's affluent consumer segment is expanding, driven by a growing middle class and increased urbanization. According to a 2022 report by Knight Frank, there were approximately 3,323 ultra-high-net-worth individuals in Kenya, a number that grew at about 10% between 2024 and 2025 These consumers travel widely and frequently, creating opportunities for payment-industry leaders to develop tailored strategies focusing on cross-border transactions, travel and expense management, and exclusive experiences. By addressing these demands, businesses can enhance loyalty and boost revenue through premium offerings, tapping into a lucrative market and maximizing profitability.
Combatting Cybercrime
As digital payments become more sophisticated, so does cybercrime. According to the Communications Authority Cybersecurity Report (2025), the National Kenya Computer Incident Response Team Coordination Centre detected over 2.5 billion cyber threat events during the three-month period between January - March 2025, which represented a 201.85% increase from the threat events detected in the previous period, October - December 2024. Application fraud, involving stolen credentials or false information to apply for financial services, is expected to continue to grow, particularly as the industry expands digital acquisition models. Mitigating application fraud risk remains challenging due to factors like limited availability of off-the-shelf risk score models and minimal recourse for recoveries. Effective measures include robust risk-mitigation frameworks, advanced risk-scoring capabilities, and strong onboarding controls.
Smart Credit-Risk Underwriting
Credit-risk underwriting for retail and small-to-medium businesses (SMBs) is crucial for assessing borrower default risk especially in an economy like Kenya where the gig economy is thriving, with an estimated 1.9 million workers as of 2022, according to GIZ Kenya. This process involves evaluating financial history, credit scores, cash flow, and collateral. Smart underwriting ensures credit is extended to viable borrowers under appropriate conditions, reducing risk for lenders and enhancing customer benefits. This will allow issuers to attract more customers, enhance retention, and manage losses effectively.
The Impact of Generative AI
Generative AI (genAI) is revolutionizing the payments sector, offering new opportunities for efficiency and innovation. GenAI can automate customer service, enhance fraud detection, and personalize financial products, making the payments ecosystem more efficient and customer centric. A 2023 study by the Kenya Bankers Association found that AI chatbots improved customer satisfaction by 30% and reduced resolution time by 40%. Further, according to a 2022 report by the Central Bank of Kenya, AI-driven fraud detection systems have reduced fraud incidents by 25%, demonstrating their efficacy in securing digital payment platforms. By leveraging AI technologies like natural language processing and machine learning, payments-industry leaders can deliver more intuitive, responsive, and secure payment experiences.
Optimizing Authorization and Fraud Prevention
Merchants have a vested interest in optimizing their authorization rates and fraud prevention methods to counteract evolving fraudster strategies. Higher approval rates can lead to increased card usage and customer retention, boosting overall revenue while delivering frictionless customer experience. Implementing advanced fraud detection systems and optimizing authorization processes can significantly enhance merchant profitability and customer satisfaction.
Seamless Technology Implementation
Implementing new advanced solutions within the technology framework is essential for payments-industry leaders. Solutions ranging from digital enablement to post-purchase experience can provide a hassle-free, first-class customer experience while operating at lower costs and greater efficiency. Collaborating with implementation partners with domain and product expertise can ensure seamless integration, improving customer satisfaction and loyalty.
Focus on Customer Lifetime Value (CLTV)
A focus on customer lifetime value (CLTV) can enhance a portfolio's value in the payments sector. Good practices in CLTV calculation and modeling, along with segmentation and opportunity identification, can improve retention, cross-sell opportunities, and overall customer satisfaction. This long-term thinking can lead to a more profitable and resilient customer base.
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Personalized Digital Engagement
Digital engagement is becoming increasingly personalized, with consumers expecting individualized experiences based on their digital footprints. Companies that consistently apply personalization strategies often observe improvements in customer satisfaction, engagement, and retention. Offering personalized digital interactions can help payments-industry leaders attract and retain customers, especially in a competitive market like banking.
Supporting Small Business Customers
Delivering personalized support to smaller business customers can be challenging. Kenya's small business sector is vibrant, with SMEs accounting for 98% of all businesses. These businesses often lack in-house financial expertise, making them attracted to the services offered by neobanks and fintechs. These institutions provide intuitive digital self-service capabilities and increased functionality, such as multi-currency facilities and instant credit decisioning. Engaging small business customers enables them to acquire financial products and services that help run their businesses more effectively.
The evolving payments landscape presents numerous opportunities for industry leaders to innovate and thrive. By staying ahead of these trends, businesses can ensure they remain competitive and continue to meet the dynamic needs of their customers.
The writer is Director, Visa Consulting and Analytics, Sub Saharan Africa
