Artificial intelligence has emerged as both the greatest opportunity and the sharpest threat facing the payments sector, according to The Payments Association’s latest State of the Industry survey released at PAY360 2025.
The UK-led survey, drew on responses from 263 senior executives in banking, technology, and regulatory circles across 93 countries, including Europe, the Americas, Asia and the Middle East.
The survey found that 18% view AI as the sector’s single biggest opportunity. Executives pointed to its capacity to automate fraud detection, streamline back-office processes, and enhance customer experience.
More than half of firms plan to adopt generative AI within the next two years, underlining the technology’s growing influence on payments infrastructure.
Yet enthusiasm is tempered by concern. Financial crime and cyber-security were ranked the top challenge for 30% of respondents, almost double the proportion who selected regulatory compliance as their biggest issue.
Many cited the use of AI by fraudsters, the rise of card-not-present fraud, and the looming impact of quantum computing as reasons for heightened vigilance. “The industry is constantly playing catch-up and needs to leapfrog to get ahead of these threats,” one respondent warned.
Robin Anderson, Tribe
Cross-border and real-time payments followed AI as leading areas of opportunity, each cited by 12% respondents. Proponents argue that frictionless, transparent and instant settlement will be transformative for businesses with international ambitions.
“The winners will be the ones who marry AI-driven optimisation with seamless cross-border capabilities,” said Robin Anderson, head of product management at Tribe.
Digital currencies
Digital currencies, including stablecoins and central bank digital currencies, were identified by 7 per cent of respondents as a promising area for efficiency and transparency in settlement.
Industry voices noted that pilots by companies such as Stripe illustrate how digital assets are beginning to move from concept to integration, even as regulation and consumer adoption remain uneven.
How cybersecurity is changing everything for Mastercard
The survey also revealed shifts in enterprise investment priorities. Fifty-five per cent of organisations expect to increase their budgets in the year ahead, with technological capabilities and digitalisation topping spending plans. Partnerships and collaborations with other players were also highlighted as critical to driving interoperability and tackling legacy system constraints.
Outlook for the sector remains broadly upbeat. Three-quarters of respondents described themselves as ‘positive or very positive’ about the next 12 months, despite persistent concerns over cyber-crime and the rising costs of compliance.
For policymakers and industry leaders, the findings underline a dual imperative: harness AI and digital innovation to improve efficiency and customer experience, while ensuring security and resilience keep pace with rapidly evolving threats.
As one payments executive put it: “AI may be the headline act, but it is also rewriting the rulebook for fraud. Managing both sides of that equation will define the industry’s future.”
Data Watch: PAY360 2025 Survey Highlights
- 263 senior respondents took part, spanning banks, fintechs, merchants and regulators, providing a broad snapshot of industry priorities.
- 30% cite financial crime and cyber-security as the most pressing challenge, underscoring concern over AI-enabled fraud and rising card-not-present attacks.
- 18% identify AI as the top opportunity, with more than half planning to roll out generative AI within two years to bolster fraud detection, automation and customer service.
- 12% point to cross-border payments and another 12% to real-time payments, reflecting demand for transparent, instant settlement in a globalised economy.
- 7% see digital currencies — including stablecoins and CBDCs — as promising, highlighting early experiments in blockchain-based settlement.
- 55% of organisations expect to raise budgets in the next 12 months, with investment focused on digitalisation, technology capabilities and partnerships.
- 75% of respondents are optimistic about the year ahead, with only 4% describing their outlook as negative.
