Transforming the future of payments

In 2024, global payments revenue grew by only 6%, marking the industry’s slowest growth in ten years. Margins for merchant acquiring have dropped 30% over five years, and regulations like PSD2 in Europe and the Durbin Amendment in the US have cut card transaction fees by over half. At the same time, competition has surged, with more than 4,000 fintech companies launching innovative payment solutions in the US alone in the last two years, highlighting an era of unprecedented innovation in payments trends.

Traditional approaches are no longer enough. To succeed in this changing landscape and usher in the future of payments, payments providers need to build on their key strengths: data, trusted relationships, and robust infrastructure.

Why value-added services matter now

Our research identified four distinct health system archetypes. Learn Value-added services are becoming central to payment industry strategy, and several trends are driving this change.

• Shifting customer expectations: Today’s consumers and business buyers want personalized payments experiences. Most expect seamless, instant, and low-cost transactions powered by advanced payment rails. New digital currencies like stablecoins are making these experiences even more accessible, supporting fast, cross-border payments with minimal fees. For payments firms, this opens up fresh opportunities to deliver contextual and digital currency services as part of their value-added services strategy, advancing the future of payments for their clients and end customers.

• The power of data: Payments companies hold valuable transaction data that can unlock new insights and revenue streams. Organizations leading in payment innovation increasingly capitalize on this data, seeing faster growth as the market for payment data monetization rapidly expands to meet demand for customized financial intelligence.

• Smarter technology: Recent advances in AI, especially agentic and predictive tools, are transforming how payments firms manage fraud, pricing, and personalized offers. These technologies enhance payment rails by significantly lowering costs and raising accuracy compared to older approaches.

As we move forward, value-added services are set to drive major growth for the industry, with higher margins and more sustainable competitive advantages than traditional transaction models. Embracing these services means payments firms can optimize profits, strengthen relationships, and stand out in a fast-changing market.

Key opportunity spaces

To take advantage of this market shift, payments firms can focus on five core opportunity areas, each offering strong potential and clear reasons for leadership.

Next steps

Seizing the opportunities presented by value-added services requires bold action and forward-thinking strategies from payments firms. Those who move decisively to clarify their priorities, enhance core capabilities, and build secure, data-driven platforms will not only unlock new revenue streams but also reshape their role in the broader commerce ecosystem.

Our latest report takes a closer look at how different payments firms are leaning into innovation and trust to position themselves at the forefront of industry growth. By taking this route, they’re ensuring they can drive change by becoming the essential partners for brands and businesses in a rapidly evolving landscape.