Word to the Credit Union Wise: Embrace the Next Generation of Payments

Payments are entering a new “experience-driven era” ushered in by an accelerated transformation timeline due to COVID-19 and customers’ “growing digital appetite”. For banks and, by extension, for credit unions, this shift underscores the urgent need to embrace next-generation payment technologies. Capgemini’s World Payments Report 2025 notes that consumer demand for instant, embedded, and frictionless payments is accelerating quickly, and that institutions relying on legacy systems risk losing customers to faster, digital-first competitors.

Here’s a high-level look at some of the findings noted in the report and what they mean for the credit union and banking communities.

Partnership Ecosystems a Priority

Nearly 45 percent of consumers frequently use mobile wallets to make payments, with “frequently” defined as more than 20 transactions per year, Capgemini found.

Capgemini estimates that global B2B non-cash transaction volumes will grow by about 10.8 % in 2024, and project an 11.4 % CAGR through 2028, underscoring the sustained digitisation of business payments. “As digital payments and mobile wallets become the norm more than the exception, payment providers must find ways to meet consumer hopes for speed and ease of use”, Anirban Bose, CEO of Capgemini’s Financial Services and a member of its Group Executive Board, said in a statement when the report was released in early October. “To embrace the next generation of payments, banks (and credit unions) must build a complimentary partnership ecosystem (with solutions providers) to keep up with the rate of change”.

Next-Gen Payments Drive Non-Cash Transaction Growth and the Need for Change

Non-cash transactions continue their strong upward trend. According to the Capgemini World Payments Report 2026, global non-cash transaction volumes are estimated at 1,685 billion in 2024, with forecasts projecting they’ll rise to 3,540 billion by 2029 — a compound annual growth rate (CAGR) of about 16% from 2024 to 2029.

This growth is being driven by a shift toward digital-first payments, including mobile wallets, account-to-account (A2A) transfers, and instant payments — illustrating that invisible and frictionless payment experiences are fast becoming the norm, not the exception.

According to the report’s authors, the increased processing volumes and instant processing requirements that come with this growth are straining legacy payment infrastructures. Banks and credit unions that want to establish and/or maintain a competitive edge will need to modernize these infrastructures, prioritizing their digital capabilities. They must also place a significant emphasis on alternative payment options, sustainable payment products, and a frictionless transaction experience among other factors.

Future-Proofing Worth Pursuing

With spending projected to increase and non-traditional payment methods expected to remain on a growth trajectory, banks, and credit unions would do well to initiate “future-proofing”, Capgemini’s analysts advised in the report. They defined this as “embracing the elements of Payments 4. X,” including data, shared infrastructure, platform capabilities, and embedded finance to deliver superior customer experience”.

The most successful players, they noted, will collaborate with payment technology solutions and services providers, as well as ecosystem partners, crafting solutions based on customer experience. “API maturity, data prowess, and augmented processing capabilities, coupled with cloud-based agility, will be the catalysts to move beyond the traditional transaction mindset into new monetization approaches”, the authors concluded.

E-Complish stands ready to partner with financial institutions as they navigate a changing payments landscape. Schedule a consultation to learn more about it.