Tomi Mölsä: Riding the Wave of Change—How European Payments Will Evolve Over the Next Decade 

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Shaped by the Instant Payment Regulation (IPR) and the increasing adoption of digital wallets, the payments landscape across Europe is evolving faster than ever, challenging traditional models while unlocking new opportunities. To keep up with this change, some businesses are working to prioritize financial solutions that cater to increasingly broader consumer needs, fostering accessibility, fairness, and innovation within the evolving payments landscape. 

The IPR, which came into force on January 9, 2025, aims to accelerate the adoption of instant payments to support Europe’s growing digital economy and evolving consumer and corporate needs, according to Ernst & Young. Together with technical development, consumer demand, the IPR is increasing the rapid change in the payment landscape. 

According to The Financial Brand, seven fintech and payments trends will reshape retail banking in 2025:  

  1. Competition will intensify in digital wallets.
  2. Virtual cards will revolutionize B2B expense management.
  3. Behavioral biometrics will drive a shift to passive ID verification.
  4. eCommerce merchants will embrace glocal payments.
  5. Regtech will accelerate amid BaaS compliance challenges.
  6. Banks must invest in PSD3 and PSR1 readiness.
  7. Sustainable fintech will become a key differentiator for banks.

Real-Time Payments as the New Standard

Immediacy is no longer optional—it’s expected. Real-time payment systems allow businesses to manage cash flow instantly and simplify global operations. For consumers, the ability to receive salaries, pay bills, or transfer money in seconds has become essential. 

Beyond convenience, real-time systems pave the way for innovations like instant lending decisions and dynamic pricing, making them a cornerstone of economic growth. 

Advances in artificial intelligence (AI), the Internet of Things (IoT), and biometrics are revolutionizing how payments work. AI enables highly personalized financial services, while IoT-connected devices can automate everyday transactions, such as subscriptions or household purchases. Meanwhile, biometrics enhance security, offering seamless yet safe authentication methods. 

However, with great innovation comes responsibility. Businesses must navigate privacy concerns and ethical challenges as they adopt these cutting-edge technologies. 

Shifting Trust in Payments

The role of trust in payments is shifting. Central Bank Digital Currencies (CBDCs) and digital wallets are challenging traditional banks by offering convenience and speed, especially in eCommerce settings. According to HSBC “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 accelerating.” 

For businesses, maintaining trust means ensuring security, transparency, and compliance while delivering seamless customer experiences. 

As you can see, the payments industry is at a turning point. By expanding their customer base, investing in real-time capabilities, leveraging technology responsibly, and fostering trust, businesses can not only adapt to change but also lead it. 

The next decade promises to be one of innovation and opportunity to build smarter, more accessible, and customer-centric financial services. Those who act now will help shape a financial future that works for everyone. 

Tomi Mölsä
Senior Advisor
Samlink Advisory Services