Exploring the future of payment and identification markets in 2025 - Insights from TRUSTECH

Industry confidence remains high despite global uncertainties

One of the most striking insights from the survey is the optimistic outlook from the industry. According to the survey, a significant 63% of respondents believe that the current business climate is either good or excellent. This level of confidence, even amidst global economic uncertainties, underscores the resilience and potential of the payment and identification markets.

What’s driving this optimism? Several factors could be at play:

• Digital transformation: The rapid advancement in digital identities and payment technologies is likely fuelling confidence. As businesses and governments continue to embrace digital solutions, the market for secure, efficient, and scalable identification and payment systems grows.
• Consumer behaviour: With more consumers demanding instant and frictionless payment options, companies in this space are seeing increased adoption and market penetration.

This positive sentiment suggests that businesses and investors alike are optimistic about the continued growth of the market, and they are gearing up for further investment and innovation.

Investment projects take centre stage

A particularly noteworthy statistic is that 84% of respondents have an investment project in the payment or identification sectors. This indicates not only strong market confidence but also an active commitment to growth and expansion. Whether it's the development of new technologies, entering new markets, or expanding current offerings, the industry is clearly preparing for significant activity in 2025.

Some of the investment trends we can expect include:

• Innovations in identity management: technologies such as digital identity wallets and tokenisation for payments are likely to attract substantial investment. These solutions are pivotal in enhancing user experience and ensuring secure transactions.
• Expansion of instant payment solutions: consumers are demanding faster, more efficient payment methods, and businesses are responding. From Web 3.0 solutions to government-backed digital currencies, instant payments are a key area of focus.

The large proportion of respondents with short-term investment plans (1 in 2) highlights the immediacy of this market activity. For businesses, this is a critical time to consider what innovations or expansions can help secure a competitive edge in the near future.

Optimism for 2025 business prospects continues to grow

Looking ahead, 74% of respondents are optimistic about 2025's business prospects. This optimism mirrors the broader trend of increased investment and expansion in the sector, driven by technological advancements, regulatory developments, and evolving consumer demands.

Several key areas of focus for 2025 include:

• Digital identities: as more transactions move online, the need for secure, reliable, and verifiable digital identities is growing. The demand for government ID solutions and Identity and Access Management (IAM) systems is expected to soar, driven by the push for enhanced cybersecurity and privacy protections.
• Web 3.0 and payments: with blockchain and decentralised technologies becoming more mainstream, web 3.0 is set to revolutionise the payment landscape. Businesses will need to stay ahead of these trends to provide solutions that align with the future of digital interactions.

The fact that half of respondents have immediate investment plans speaks to the belief that the industry is on the cusp of major developments, making it crucial for businesses to position themselves strategically for the upcoming opportunities.

Europe leads as the top investment destination

The survey also highlights which geographic regions are most attractive for investment in payment and identification technologies. Europe leads the way, with Europe (excluding France) ranked first, followed closely by France itself. North America, Asia, and the Middle East round out the top five.

This global distribution of investment targets indicates that the markets for payment and identification solutions are maturing across multiple regions, driven by regional economic growth, regulatory shifts, and digital innovation.

• Europe’s leading position can be attributed to its strong regulatory framework, which encourages innovation while protecting consumers. Initiatives such as PSD2 (Revised Payment Services Directive) have fostered a competitive and innovative landscape for payment providers.
• North America and Asia: with vast consumer markets and a high level of technological adoption, these regions present significant growth opportunities, especially in digital payments and fintech innovations.

For businesses and investors, understanding the regional dynamics of these markets will be key to capitalising on the opportunities that lie ahead.

Investment Budgets Reflect Strong Commitment

Another key finding is that for more than half of the respondents, the minimum budget for investment projects in this space is €500,000. This is a clear indicator of the scale of commitment and the perceived value of innovation in payment and identification technologies.

These investment levels suggest that businesses recognise the importance of remaining competitive through innovation and technological advancements. Whether it’s through developing new solutions or upgrading existing infrastructure, companies are willing to make substantial investments to stay ahead in this fast-moving sector.

Key technologies and solutions driving the future

When it comes to the future of payments and identification, respondents are particularly interested in:

• Digital identities and government ID systems, which are crucial in an increasingly digital world. As governments and corporations alike seek to streamline services and ensure security, digital identity solutions will play a pivotal role.
• Instant payments and 100% tokenisation for payments. With the rise of blockchain and tokenisation technologies, businesses are looking for ways to make payments faster, more secure, and more cost-effective.
• Identity and Access Management (IAM), which is critical for ensuring secure access to systems and services in an era of increased cyber threats.
• Web 3.0 for payments: The next generation of internet technologies, including decentralised and blockchain-based systems, are poised to reshape the way we think about and process payments.

Understanding what visitors are seeking provides businesses with an opportunity to align their offerings with market demand. Those who can provide cutting-edge solutions in these areas are well-positioned to succeed.

Preparing for 2025, strategic takeaways for businesses

The insights provided in TRUSTECH's survey paint a picture of a dynamic and fast-evolving industry. With significant investment planned, a positive business outlook, and a focus on emerging technologies, the payment and identification markets are poised for substantial growth in 2025.

For businesses and investors, the key to success will be staying informed about the latest trends, understanding regional market dynamics, and making strategic investments in the right technologies. With TRUSTECH offering a platform to connect industry professionals and explore these developments, the future of payments and identification is bright, and the opportunities are plentiful.

As we look towards 2025, the time to act is now. The convergence of digital identities, instant payments, and Web 3.0 technologies is creating a fertile ground for innovation, and those who embrace these changes are likely to be the leaders in tomorrow’s market.