Cashless Transactions Expected to Grow 80% in 2025: Paymentology

The digital payment ecosystem in Mexico is shifting due to advances in real-time payments, tokenization, and mobile wallets. Global cashless transaction volumes are expected to grow by 80% by 2025 and triple by 2030, with Mexico emerging as a hub for innovation and adoption, says Paymentology.

The global volume of cashless transactions is forecasted to rise from 1 trillion to nearly 1.9 trillion operations annually by 2025, according to Paymentology. This surge, fueled by real-time payments and digital wallets, is expected to reach a value of US$193.1 billion by 2030. “Payments in 2025 promise transformations that will benefit both consumers and businesses, thanks to a focus on advanced, accessible, and secure digital solutions,” says Alejandro Del Río, Regional Director for Latin America, Paymentology, to MBN. 

Mobile wallets are set to play a pivotal role, with projections estimating 4.8 billion users by 2025 — nearly 60% of the global population. This growth is expected to drive cross-border e-commerce and financial inclusion, particularly in underbanked regions. “As fintechs and traditional payment providers collaborate, and new players enter the market, innovation and competition will thrive,” says Jeff Parker, CEO, Paymentology.

Tokenization is becoming a cornerstone of payment security. By replacing sensitive data with unique tokens, this technology reduces the risks of fraud and cart abandonment in online shopping, which now exceeds 70%. “Prevention will be the focus, with tokenization making fraudsters' efforts ineffective,” says Stephen Bowe, Product Director, Paymentology.

Tokenization substitutes sensitive payment data with secure digital tokens. “Tokenization converts sensitive payment data into secure digital equivalents, preventing fraud and ensuring a seamless customer experience. Think of it as swapping cash for casino chips — a secure alternative,” says a representative from Mea Wallet to MBN.

AI is also transforming the financial sector, improving operational efficiency while simultaneously fueling a surge in fraud, according to experts. Advanced techniques like phishing, deepfakes, and synthetic identity creation are becoming more common, intensifying the challenge of combating fraudulent activities. The Global State of Fraud and Identity 2024 report by LexisNexis Risk Solutions highlights the growing complexity and frequency of banking fraud globally.

In Mexico, the banking sector experienced a dramatic 700% increase in financial fraud attempts in 2023, as reported by Trully, a financial fraud bureau. Fraudsters are increasingly using AI to develop synthetic identities, making detection far more difficult. “Fraud is no longer limited to stolen identities; AI is now being utilized to generate entirely new ones, complicating the process of uncovering fraudulent actions,” says Fernando Paulin, CEO, Trully.

To boost digital payments, banks and fintechs are launching fully digital financial services, like bineo and Ualá, offering specialized services for well-defined niches, particularly in the business segment. “The approach will target narrow, impactful niches, ensuring faster paths to scalability and profitability,” says Anna Porra, Chief Revenue Officer, Paymentology.