Expert view: 5 paytech trends for 2026

Trend #1 – The rise of instant payments. But with speed comes risk.

Instant payments have transformed the payment landscape in previously cash-dominant markets such as India, Brazil, and China. Their impact in more mature markets such as the US and Europe has been slower to materialize. ​However, this recently changed: on October 9, 2025, amendments came into effect to the EU Instant Payments Regulation that make it mandatory for all banks and payment service providers (PSPs) ​using the euro as currency to send and receive instant credit transfers that settle within 10 seconds. So, what will change? We asked G+D expert Barnabás Ferenczi.

“For consumers, not much. Instant payments will add more flexibility at checkout; for merchants, however, it promises immediate access to funds and lower fees,” says Ferenczi. “The opportunity for banks is arguably even bigger. Instant payments can bring banks closer to their customers by reasserting their presence at the point of sale, creating more personalized touchpoints that strengthen customer loyalty.”

However, with speed comes risk. Authorized push payment (APP) fraud – where customers are deceived into authorizing irrevocable transfers – is on the rise, proving a huge obstacle to mainstream adoption. The now mandatory verification of payee (VoP) – which involves banks cross-checking a payee’s name against their IBAN – will help mitigate this risk; however, to drive meaningful adoption, banks should consider incorporating other card-like protections, such as chargeback and robust authentication features. 

Ferenczi adds: “Even if little changes on a consumer front, the EU mandate will trigger new use cases for instant payments – for example, in treasury management in B2B transactions. But the fraud risks won’t go away, which is why VoP – combined with other measures such as data sharing among banks, payment service providers (PSPs), and merchants – will be so important for raising the security of instant payments.”

Trend #2: AI and fraud: a double-edged sword for banks

If digital and instant payments have increased the urgency of tackling fraud, AI has changed the rules of engagement – and it’s a double-edged sword for banks. On the one hand, generative AI tools are empowering criminals, making it harder for everyday citizens to detect social engineering attempts. Poorly written emails – once the hallmark of phishing attempts – are now easier to mask with a quick AI-rewrite. Deepfakes and voice cloning tools have also made it easier than ever for bad actors to impersonate trusted parties (bank staff, close friends, or relatives) and convince unknowing victims to voluntarily hand over their credentials or authorize transactions – no hacking required. 

Fortunately, AI has also being deployed to defend against fraud. For example, machine learning models can analyze user behavior patterns (when, how often, from which device, etc.) to detect anomalies in real time. In some cases, AI can even detect if a user is alone or being guided during a session. The more banks connect the dots across their product verticals – and even across organizations – the more effective the defense will become. 

Ferenczi’s take here is this: “Moving forward, it remains to be seen how the AI fraud detection use cases can be supported on a regulatory front. Transparency requirements and regulatory uncertainty make some banks hesitant to deploy more AI-based tools, highlighting a need for clearer guidance on this front.”

He adds, “Criminals no longer need to steal credentials. Thanks to AI, they can break down defenses with natural language. In addition to leveraging AI as a force for good, banks must also take steps to continuously educate customers on the most common scams.”

Trend #3 – Building resilient national payment systems, but no silos, please

Domestic payment systems are valuable assets within a national payment ecosystem – but they increasingly lag behind global networks such as Visa and Mastercard. Closing the gap is as much about staying competitive as it is about protecting payment sovereignty and increasing resilience. 

So, what can domestic systems do to compete? First, they can become fully mobile and online compatible. If consumers are going to prioritize domestic payment programs (such as Germany’s girocard network) over international ones, they need to be able to shop online, pay for in-app purchases and subscriptions, and pre-authorize payments for hotels and car rentals with the domestic program. That’s the minimum requirement. User experience and security are other key areas that must achieve parity with global networks. 

Ferenczi sees one surprising aspect as special challenge. “The biggest hurdle, however, isn’t technical or know-how – it’s governance,” he says. “Many schemes still operate as associations or similar consensual, non-profit setups, which slows down decision-making and innovation. To be competitive, they need to adopt a for-profit and system-like attitude, with a mandate to enforce standards. This will accelerate the development of new features and ensure domestic payment systems can credibly compete against bigger, global competitors. We should pragmatically strengthen and future-proof domestic card programs as part of building a resilient, competitive, and strategically autonomous ecosystem.”

Trend #4 – Stablecoins moving into the mainstream?

Stablecoins have been one of the most discussed topics in recent months, following the passing of the GENIUS Act in the US. The GENIUS Act, which became law in July 2025, provides the first comprehensive regulatory framework for payment stablecoins. Unlike volatile crypto assets, stablecoins are blockchain-based tokens designed to hold value, backed 1:1 by liquid assets. Similar to crypto, they are not a currency, nor are they means of everyday retail payment. But there might emerge use cases with some utility.

By far the most promising opportunity is in cross-border payments, both at a retail level – for example, in the form of lower-cost and faster remittances – but also in the B2B space, where there is plenty of room for disruption. Stablecoins may also open up new opportunities for tokenized finance, providing retail investors with easier access to money-market funds and new liquidity instruments. However, when it comes to more retail or everyday use cases such as in-store and e-commerce environments, it’s unlikely that stablecoins will gain any traction in the short to medium term – consumers are already well served with existing payment methods.

Ferenczi’s outlook: “The stablecoin opportunity is an interesting one. Our job is to find the problems best solved by stablecoins – and then provide the security technology to make those uses as secure and convenient as every other payment rail.”

Trend #5 – Hyper-personalization in card issuance

Despite the rise of digital payments, the physical payment card remains a valuable touchpoint for banks, which are increasingly using such cards as competitive differentiators to strengthen customer relationships in an increasingly competitive market.

Full customization of design, material, texture, and even scent gives customers full control of their bank card, turning them into symbols of identity that they want to carry. This allows banks to serve distinct customer profiles uniquely.

For status-conscious customers, sleek metal or even ceramic cards signal prestige. For environmentally conscious individuals, cards made from recycled materials or wood reflect personal values. To strengthen the bond between banks and their customers, it’s key to create standout experiences starting from the moment the card arrives with its customized packaging.

“Hyper-personalization goes beyond aesthetics – it’s a strategic opportunity for banks to deepen customer relationships,” says Ferenczi. “The data shows customers with personalized payment cards spend more and stay longer, delivering real ROI on personalization investments.”

The business impact is substantial. One global bank reported a 40% increase in customer acquisitions through personalized card offerings, while metal cards drove 40% growth in spending for another – highlighting the appeal of premium cards.

Ferenczi adds: “With today’s technology, banks can offer unprecedented levels of personalization while maintaining the security and reliability their customers expect.”

Published: 23/04/2026