Source: Finance Derivative

Written by Fernando Costa-Cabral, SVP Branded Payments, and Ishan Vaid, VP Core Features, at Paysafe.

Throughout 2025, we’ll see two seemingly opposing payment methods – eCash and digital wallets – further reshaping how consumers manage their money. While cash – and future access to it – is still critically important for consumers, digital payments are undergoing a huge transformation.

eCash will continue to bridge the digital divide by ensuring consumers can use physical currency to buy goods and services online. As a result, businesses will leverage it as a democratizing force to promote financial inclusion and serve diverse consumer segments.

Digital wallets also have a major role to play in the evolving payments landscape, with 32% of consumers reporting to have increased their use of wallets in 2024. A notable development is the rise of brand-owned wallets, as businesses outside the financial services sector seek to establish closed-loop ecosystems to control and enhance the customer experience.
 

With a view to the year ahead, here is how eCash and digital wallets will evolve throughout 2025.

Bridging the digital divide with eCash

Even in today’s digital world, cash plays a vital role in consumer finances. Recent research from Paysafe has revealed that 63% of consumers harbor concerns about losing access to cash, while 44% want the option to buy items online and pay in cash at a brick-and-mortar store.

This preference stems from the unique advantages of cash: it provides tangible financial security, enables precise spending control, and helps users avoid the often-hidden costs commonly associated with credit-based payments. Across geographies, cash remains essential for reducing financial anxiety and ensuring reliable transactions.

Despite its enduring importance, cash has largely remained on the sidelines of the recent payment revolution. Traditional cash-based operations continue to be cumbersome and time-consuming – whether it’s depositing physical money into a bank account, coordinating international cash transfers, or attempting to set up installment payments. Furthermore, the retail sector has generally overlooked cash users when developing modern consumer incentives such as cashback programs, buy-now-pay-later (BNPL) schemes, or subscription-based services, creating a noticeable gap in the market.

That is all now changing. This year, eCash will solidify its position as the right solution to bridge this divide between physical currency and our increasingly digital economy – making cash more relevant and accessible in the modern world. In the year ahead, eCash’s progression will materialize through three main developments: enhanced security measures, value-added features, and a significantly improved user experience. With these improvements, eCash can transform traditional cash into a simple and secure payment method with the same core benefits that make cash valuable to many people.

Digital wallets will diversify the payments landscape

In a similar vein to eCash, digital wallets are diversifying the payments landscape, with non-financial brands increasingly venturing into the territory once dominated by incumbent financial service providers. By acquiring their own digital wallet solutions, these brands are reducing their dependence on external financial institutions and enhancing the payment experience.

The trend toward brand-owned wallets has already gained traction in Asian markets, with e-wallets now being offered by ride-hailing apps and e-commerce platforms – and we anticipate a significant uptake in markets like the UK over the coming year. Specifically, retail chains, gaming platforms, and logistics companies are all exploring how digital wallets can streamline their payment processes, strengthen customer loyalty, and deliver greater control over the user experience.

There’s particularly strong momentum building around white-label wallet solutions, which provide businesses with a sophisticated approach to payment integration. These solutions enable brands to incorporate advanced wallet functionalities directly into their existing platforms while maintaining complete control over their user interface and experience. This development aligns with a broader strategic shift we’ve observed across various sectors – from gaming and retail to mobility services – where brands increasingly want a closed-loop ecosystem that they manage.

In 2025, we can anticipate four key evolutionary trends in the digital wallet space. First, we will see even more seamless integration of wallet functionality into non-financial platforms, allowing users to complete transactions without leaving their preferred brand’s ecosystem. Second, there will be significant advances in real-time currency conversion capabilities and multi-currency wallet features, catering to the growing demands of global commerce and international travel. Third, we can expect enhanced instant settlement capabilities, supported by faster payment rails that align with contemporary consumer expectations for immediate transaction processing and gratification. Finally, there will be an increased emphasis on sustainability, with digital wallets incorporating eco-friendly features such as carbon footprint tracking to meet the growing consumer demand for environmentally responsible financial services.

While these two technologies and their respective journeys aren’t necessarily joined at the hip, as 2025 unfolds both eCash and digital wallets will help to create a more accessible and customer-centric financial system. This evolution isn’t about choosing between cash and digital – it’s about seamlessly bridging both worlds, giving consumers and brands greater control over how they pay and get paid.

By Christina Kemper, Vice President of International at Armis

Almost every single organisation, large or small, is acutely aware of the need to implement robust security measures. However, this is easier said than done. As the threat landscape continues to evolve, only heightened by tools such as AI, it can be difficult to stay ahead and ensure appropriate security measures are in place. Furthermore, there are a lot of security tools out there, and many organisations have tried to implement security measures and are now overwhelmed with an influx of information trying to figure out how best to manage it.

However, though it may not be the easiest task, it’s certainly one worth doing right. So, as we look ahead to 2025, what are the main trends that organisations need to be aware of and how can they use this knowledge to stay protected?

1. Nation-state threats will worsen

The global geopolitical landscape is increasingly influencing the cyber threat environment. Nation-state actors, motivated by political or strategic goals, are launching more sophisticated cyberattacks which target critical infrastructure, government agencies and private enterprises. These attacks are often highly targeted and can have devastating consequences that disrupt society and economies.

In 2025, we can expect an uptick in cyberattacks from nation-state actors as global tensions rise. The UK, like many other countries, has already experienced the consequences of these kinds of attacks – and new technologies such as AI and quantum computing are only making things more complex. Just last month, UK minister, Pat McFadden, warned that Russia and other adversaries of the UK are attempting to use AI to enhance cyber-attacks against the nation’s infrastructure. Worryingly, however, over half (52%) of IT leaders in the UK do not believe the government can protect its citizens and organisations from cyberwarfare.

As we move into the new year, we will increasingly see nation-state attacks move away from the direct theft of sensitive information and focus more on destabilising economies, disrupting services, or causing widespread panic. When it comes to threats such as these, catching the early warning signs is vital. Organisations need to ensure they are using proactive measures to detect and prevent threats before they materialise.

2. Supply chain attacks will continue to cause major disruption

For the last few years, it has become increasingly evident how vulnerable organisations are to supply chain attacks. Attacks on third-party vendors and partners have been responsible for some of the highest-profile breaches this year, such as the Synnovis and the Network Rail attacks. Additionally, the estimated global cost of supply chain attacks is expected to reach $60 billion in 2025.

As such, supply chain security is now a priority for many businesses, particularly as they depend more on external vendors for critical services and products. This broadens the scope of cybersecurity efforts beyond the organisation itself to include partners, suppliers, contractors and service providers. As such, organisations need to view their cybersecurity strategy holistically. It’s no longer enough to adopt a security posture that focuses solely on internal assets – businesses must extend their scope to the entire ecosystem.

3. Regulatory compliance becomes more complex

The importance of regulatory compliance in cybersecurity has shifted from being a mere checkbox exercise to a fundamental aspect of any organisation’s strategy. And, with new regulations on the horizon, especially in the UK and Europe, businesses are now faced with even more stringent requirements.

For example, the EU’s Network and Information Systems Directive (NIS2) and Digital Operational Resilience Act (DORA) are pushing organisations to establish more robust cybersecurity frameworks. However, meeting these compliance requirements is not just about avoiding penalties. Organisations that invest in comprehensive cybersecurity programs, those that go beyond compliance and look to proactively protect against risks, are better positioned to maintain their reputation and trust among customers.

Additionally, as the number and complexity of regulatory frameworks continue to increase, the demand for compliance-as-a-service solutions – which help organisations navigate the complex landscape of local and international regulations – will increase. These services can offer businesses tailored solutions that simplify the process of ensuring adherence while also enhancing their overall cybersecurity posture.

4. Solution consolidation will be vital

Lastly, in response to the growing complexities of the threat and regulatory landscape, another trend we should expect to see in 2025 is the move toward single-platform solutions. Currently, organisations are heavily relying on point solutions designed to address specific security concerns, such as firewalls, anti-virus software and intrusion detection systems. However, as the threat landscape grows increasingly complex, the demand for integrated solutions will increase and it’s important that organisations have the ability to easily work through the influx of information that is out there with single-platform solutions.

Looking ahead

When it comes to cybersecurity, playing catch-up is not an option. In 2025, UK organisations need to ensure that they are staying one step ahead of bad actors. By being aware of the current trends in the threat landscape, businesses can make better-informed decisions regarding their cybersecurity posture. The threat landscape is always evolving, but organisations that stay informed, adopt a proactive cybersecurity approach, and make the most of the latest technologies will be far better positioned to protect themselves.

By Kevin Brundish, CEO of LionVolt 

As we look toward the future, the global wearables market is projected to reach $265.4 billion by 2026. This growth is further fuelled by advancements in AI, which promise to enhance the functionality and performance of wearable devices. For instance, in the healthcare industry, artificial intelligence (AI) may use the massive volumes of data gathered by wearables to communicate with patients and offer precise diagnosis, advice and support.

Despite the remarkable features and capabilities of modern wearable devices, battery life remains a significant challenge. Most smartwatches, for example, still struggle to last a full 24 hours, making it difficult for users to monitor sleep patterns and daily activities continuously without frequent recharging. With the use of AI and applications that demand increasing amounts of data, this limitation prevents wearables from becoming fully integrated tools in our daily lives.

Advances in battery technology are looking to address this issue. At LionVolt we are working on a 3D lithium-metal anode technology which helps to significantly enhance lithium-ion battery performance.

Smaller Batteries, Same Energy 

The most significant advantage of lithium-metal anode batteries is their ability to provide the same energy from a smaller size battery. This gives designers greater freedom and opens new possibilities for wearable technology by enabling the miniaturisation of existing wearable designs. In addition, lithium-metal anodes may allow manufacturers to lower overall prices by moving away from costly cathode materials they use now, to cathode materials being used in automotive industry, where there is a cost advantage through economies of scale. 

Higher Energy Density and Faster Charging Times 

When we compare conventional lithium-ion batteries to lithium-metal anode battery technology, the lithium-metal anode batteries have a superior energy density. For users of wearable devices, this translates to longer usage periods and fewer charging interruptions as well as faster charge times, which minimises downtime and guarantees that gadgets remain operational when needed.

Enhanced User Experience 

Fast charging periods and increased energy density which is key to longer usage periods improve wearable technology’s overall performance, enabling consumers to maximise its benefits without sacrificing dependability or quality

Lithium-metal anode powered batteries also improve wearable gadgets’ dependability and durability. Users can count on their wearables to function reliably day or night and to enable a variety of applications, such as health monitoring and exercise tracking. These batteries are made to endure the demands of regular use, guaranteeing that gadgets continue to be reliable and operational for long stretches of time. 

The use of the highest performing materials in wearables typically comes at a high cost. However, with the advancement of new technology, it becomes possible to utilize more widely available and cost-effective anodes without compromising on performance. This approach allows for the efficient operation of wearables while also offering a cost benefit, addressing the economic challenges associated with high-performance materials.

Overcoming Adoption Barriers 

One of the key reasons for the slower adoption rate of consumer wearables is the charging rate. The utility of these products can be increased, along with their consumer appeal by extending their battery life and charging timeframes. The advantages of the next generation of batteries—faster charging, longer battery life, and improved device dependability—can greatly accelerate wearables’ uptake.  

Advancing Wearable Technology 

By tackling the crucial problem of battery duration, coupled with a fast charge capability, lithium-metal anode technology would propel the wearables business forward. An emphasis on sustainability and safety guarantees that these developments help both consumers and the environment, while our smaller, more efficient batteries provide designers the freedom to develop creative new gadgets. 

Transforming the Landscape of Wearable Technology

Lithium-metal anode battery technology brings numerous benefits to the consumer wearables sector: 

• Longer Battery Life: Wearable devices will last much longer on a single charge, addressing a significant pain point for users. 

• Increased Monitoring Time: Faster charging means users can monitor their health and activities for extended periods without interruption. 
• Reduced Equipment Needs: With longer battery life and faster charging, users will need fewer duplicate products to cover charging times, simplifying their tech ecosystem.

Imagine being able to monitor your heart activity and more to manage health conditions without worrying if your device has enough power? With improved battery longevity, users can rely on their wearables for consistent health insights, making it easier to identify trends and make informed lifestyle changes. This seamless integration into daily life not only promotes better health management but also empowers users to take proactive steps towards their well-being.

These enhancements not only improve the user experience but also pose the potential to increase the adoption rate of consumer wearables.

Looking Ahead: Shaping the Future of Wearable Technology 

Wearables have a bright future because of AI and cutting-edge battery technology, which will greatly enhance their usability, dependability and functionality. The next generation of batteries are revolutionising the wearables market and paving the way for a new era of technological innovation by emphasising sustainability, increased energy density, quicker charging times, and improved safety features.