Embracing Change: Exciting Trends in Merchant Services
Financial technology in merchant services is changing quickly, especially where customers notice it most—at checkout, in their shopping carts, and on their phones. At Revere Payments, we track these shifts every day to help businesses stay ahead. Here are three trends in 2025 that are changing consumer payments:
1. Digital Wallets Are Becoming Essential
Mobile wallets like Apple Pay and Google Wallet are now a must‑have for merchant‑services providers and the merchants they support. A November 2024 PYMNTS Intelligence study found that 48% of Americans use these wallets online, and 39% use them in stores [PYMNTS, Nov 23 2024 – “Digital Wallets Gain Traction”].
Many small retailers pair mobile wallets with a phone‑based card reader, sidestepping expensive countertop hardware. Wallets are also evolving beyond payment—they now store transit passes, IDs, and event tickets. Merchants that embrace this broader functionality can reduce cart abandonment and chargebacks while collecting valuable customer data.
2. Buy Now, Pay Later (BNPL) Is Going Mainstream
U.S. consumers are expected to spend a record $18.5 billion using BNPL this year, up from $75 billion in 2023 (Adobe Holiday Forecast, Sept 25 2024). Adding BNPL options can boost average order values by 20‑30%, and nearly 50% of Gen Z and millennials already use the service. Even small businesses that rely on traditional card rails are adopting BNPL to stay competitive.
Regulators are proposing new rules that would treat BNPL like traditional credit‑card processing, requiring clearer disclosures. Merchant‑account providers will need to balance transparent terms with easy‑to‑use interfaces.
3. Real-Time Payments With FedNow
The Federal Reserve’s FedNow Service launched in July 2023 and now connects more than 900 banks and credit unions (Federal Reserve Financial Services, Aug 1 2024 – “FedNow Service ends first year with 900+ participants”) . Instant settlement enables rapid payroll, gig‑worker payouts, and just‑in‑time supplier payments. Businesses are weighing whether to route certain flows through FedNow or The Clearing House RTP network to accelerate cash flow.
Bottom Line
Fintech innovation is turning merchant services into connected ecosystems that blend payments, identity, and credit. Businesses that adapt to these changes—while managing risk and compliance—will stand out.
Since 2007, Revere Payments and MGI have been leading providers of merchant account credit card processing for low, medium and high-risk organizations. We offer tailored solutions that can rank among the best credit card processing companies in the world. With Revere Payments, you gain a trusted partner for transparent pricing, reliable security, and exceptional support—helping you focus on what you do best: growing your business.
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