Top trends and opportunities for financial services in 2025

Every year seems to usher in a new era for the financial services industry, and with it comes new challenges and opportunities for incumbents and newcomers alike. Innovation is the name of the game, fueled by digital transformation, shifting consumer behaviors, and rising competition from fintechs. 

Three key trends are transforming financial services in 2025 and presenting new opportunities for embedded payments solutions to step up to the plate. 

Let’s dive into those 3 trends to better understand how they’re setting the stage.

The regulatory landscape is more complex than ever before. Financial institutions (FIs) must now navigate a patchwork of evolving regulations, from PSD3 and GDPR in Europe to CFPB updates and Dodd-Frank provisions in the U.S. These mandates are raising the bar on everything from data privacy and consumer protection to transaction monitoring and fraud prevention.

What’s more, the pace of regulatory change is accelerating, especially as governments respond to new technologies like AI and crypto. Financial services providers operating across multiple markets face the challenge of scaling compliance without slowing innovation. They must also meet these standards while delivering fast, frictionless user experiences. 

Retailers, SaaS platforms, and gig-economy apps are blurring the lines between commerce and banking. Embedded finance has turned non-financial brands into payment powerhouses, offering everything from instant payouts to branded cards. In our own 2024 State of Payments Report, we highlighted that an increasing number of consumers are willing to consider non-traditional financial services providers, with one-fifth (19%) of consumers already using them.

For traditional FIs, this is both a threat and an opportunity. Yes, digital-native challengers are gaining ground. However, FIs have the opportunity to become the engine behind embedded payments by offering Banking-as-a-Service (BaaS), card issuing, and real-time disbursements to ecosystem partners.

With the launch of FedNow in the U.S., and global growth in networks like UPI (India) and RTP (U.K.), real-time payments have become table stakes. Customers now expect money movement to be quick and efficient, whether they’re transferring funds or getting paid for gig work.

Embedded payments turn this expectation into reality, allowing financial services to operate at the speed of consumer demand. And it’s not just speed and ease of use—embedded payments can also manage fraud and settlement risk behind the scenes, whether that’s facilitating real-time payouts for marketplace sellers or real-time reimbursements for insurance claims.

To seize this opportunity, financial services firms have to move quickly but with precision. Embedded payments don’t just help you adapt, they help you lead—with partners like Marqeta supporting you along the way. 

Here are some of the most impactful opportunities in play today.

Instead of treating compliance as a cost center, financial institutions can turn it into a point of differentiation. Many of today’s embedded payment platforms offer turnkey compliance capabilities that reduce friction while helping to boost trust.

In this way, embedded payments can help strengthen compliance. Partnering with embedded finance providers like Marqeta can help build compliance into payment infrastructure to reduce operational overhead. Modern APIs can automate Know Your Customer (KYC), Anti-Money Laundering (AML), and transaction monitoring, allowing institutions to focus on the customer experience while staying aligned with regulatory frameworks.

Payments are more than transactions—they’re insights. Embedded payments enable real-time data collection at the point of interaction, powering smarter financial experiences. In other words, personalization is no longer just possible—it’s expected.

McKinsey notes that personalization can slash customer acquisition costs by up to 50% and lift revenues by up to 15%. Embedded payments unlock the data flows necessary to deliver those experiences at scale.

Small businesses and gig workers are underserved by traditional financial services providers, but they represent a massive opportunity. Embedded payment tools like virtual cards and on-demand payouts help this segment thrive by addressing workers’ financial needs.

For example: A freelance platform can embed virtual card issuing into its onboarding flow, enabling workers to access their earnings quickly and spend them securely—without waiting for a bank transfer. 

That’s solving real problems, for real people, in real time.

Across every trend and opportunity, embedded payments offer a unifying strategy. They provide the infrastructure for regulatory compliance, the rails for real-time money movement, and the intelligence for personalized experiences. 

As we look toward the future, one thing is clear: The institutions that will win are the ones that make payments invisible, intuitive, and deeply integrated into everyday life. Embedded payments make that possible—not someday, but today.

Is your financial services business ready to unlock the power of embedded payments? Discover how our solutions can help revolutionize operations and delight your customers at every step in their journey.