Butter unveils 5 key payment predictions for 2025

Each year, Butter’s team of experts come together to identify key trends that will impact the payments ecosystem and subscription businesses' growth opportunities. This year, we’ve spotted five emerging trends that are poised to transform how subscription-based companies do business.

“Subscription brands have been squeezed by skyrocketing customer acquisition costs and excessive processing fees for years now,” said Vija Menon, Founder and CEO of Butter. “In 2025, merchants will fight back by doubling down on retention to boost lifetime value, payment recovery to drive revenue, and optimization to reduce transaction costs. The emerging trends Butter identified are extensions of these themes and a sign of major changes on the horizon.”

Top 5 payment trends in 2025

Trend 1: More merchants will launch closed-loop digital wallets

Closed-loop digital wallets have several advantages over traditional digital wallets. Find out what they are and why enterprise businesses will favor them in 2025. 

Trend 2: Brands will deploy multiple PSPs as they scale

Subscription-based companies rely on payment service providers (PSP) to scale internationally, but for optimal growth, two is better than one. Get the details on why brands will deploy multiple PSPs next year and why you should consider doing it, too.

Trend 3: Retention will be a new growth catalyst

Customer acquisition costs are through the roof. That’s why businesses will look to retention to achieve their growth goals. See the data that shows why retention is on everyone’s minds.

Trend 4: Recovery will become its own revenue channel

In 2025, retention and payment recovery will become their own revenue channels. Read our guide to find out why.

Trend 5: Building an in-house payments solution will be more expensive

If you want to build a homegrown payment solution, prepare to shell out millions. We detail how many payment professionals you need to run a successful in-house solution and how much they’ll cost you.

For a full break down of our predictions and how they’ll impact your subscription business, read our latest ebook, 5 Key payment trends shaping 2025 and beyond.  

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