The future of payments: Key trends that will shape 2026

Digital payments have transitioned from a matter of convenience to becoming essential public infrastructure.

This shift is underscored by the continued decline in cash usage, which is projected to account for just 46 per cent of worldwide payments in 2025, down from 50 per cent in 2023. A significant trend is the rise of account-to-account (A2A) transactions, which are becoming mainstream primarily through digital wallets and payment applications in case of India, representing around 30 per cent of global point-of-sale payments.

A decade ago, the question was how to digitise transactions. Today, the priorities are consistency, ease of use, interoperability and security at scale. Payment systems are being shaped by behaviour embedded in everyday commerce rather than isolated innovation.

Looking ahead, I believe, three themes will broadly define the ongoing transformation in 2026.

The first is mobility-driven payment habits as people increasingly use familiar digital tools across borders. The second is interoperability between payment systems, which will allow transactions to feel predictable wherever users travel, and the third is invisible innovation, where artificial intelligence (AI), thoughtful design and layered security operate in the background.

These themes are gaining strength as smartphone ubiquity, cross-border travel and regulatory cooperation increase.

Multiple payment networks are coordinating on settlement standards, creating a path toward seamless cross-market digital finance.

This convergence of payment forces is driven by the rapid evolution of the sector, which has moved sequentially from card acceptance to mobile applications and now to instant settlement via A2A transfers.

With over 85 per cent of households using a smartphone, the foundation for widespread digital payment habits is firmly established. India’s fintech adoption rate is among the highest globally, and UPI has become the largest real-time payment system by volume, processing more than 20 billion transactions every month, handling nearly 50 per cent of global real-time digital payments.

The UAE shows similar readiness, with near-universal smartphone use and strong digital engagement among consumers and merchants. UAE’s instant payment platform AANI enables A2A transfers and is evolving to support QR-based merchant payments, reinforcing the country’s shift toward instant digital settlement.

Momentum is visible in the rest of the world, including Brazil’s PIX network, Singapore’s PayNow and the US’ FedNow, as countries adopt real-time payment infrastructure as a foundation for digital public services and economic inclusion.

Payment trends: Cross-border consumer journeys

In 2026, digital finance will be shaped increasingly by movement across geographies.

Travel provides a clear example. India has expanded its operational airports for commercial flights from less than 80 to over 150 in last 10 years, creating numerous digital touchpoints for transport, food and duty-free purchases.

Nearly 100 million people in India hold passports, and around 60 destinations now offer visa-free or visa-on-arrival access to Indian citizens.

As cross-border mobility grows across work, study and leisure, users begin to expect that digital payment options should function everywhere with the same ease they experience at home.

The UAE continues to be the most visited destination for Indian travellers, accounting for almost 7.8 million visitors in 2024. Other GCC countries also see strong mobility, with more than 3.4 million Indians travelling to Saudi Arabia, over 1.1 million to Qatar, and close to one million each to Kuwait and Oman during the same period.

Indian travellers can now make QR-based UPI payments from their Indian bank accounts at selected merchant outlets in the UAE and Qatar.

Across the GCC, policymakers are reinforcing digital finance foundations through real-time settlement systems, shared QR guidelines and digital identity initiatives.

Saudi Arabia is advancing instant payment through SAMA’s regulatory sandbox, while Bahrain has introduced one of the region’s earliest open banking frameworks. Qatar and Oman continue to invest in digital payments to support tourism and commerce.

Next-generation user experience

Consumer habits are driving the transition to digital routines, marked by frequent, low-value transactions in sectors including food, transport, and retail, and visit to tourist destinations including UNESCO heritage sites.

This progress relies on continued democratisation and seamless innovation. User interfaces are being refined to minimise steps and reduce cognitive load.

Tokenisation and background authentication methods are becoming invisible and routine. AI is expected to analyse behavioural patterns in real time, detect unusual activity and protect users without interrupting payment experiences.

Biometric checkout, multilingual voice activation, contactless ticketing and digital identity wallets are becoming more common in retail and mobility environments.

Smart devices, cars and wearables are emerging as new endpoints for payment confirmation. Embedded finance is gaining traction as consumers seek payment experiences inside existing journeys such as mobility applications, healthcare portals and subscription services. Buy now, pay later options and instant credit decisions are becoming routine parts of digital commerce.

Shared digital infrastructure

Regulators in several markets are accelerating evolution of open banking rules that allow customers to control their data while enabling secure connectivity for third-party services. As open finance principles take hold, financial institutions, payment networks, and technology firms will operate on shared standards.

Average remittance costs remain above 6 per cent in many markets, highlighting the need for more transparent, accessible and affordable digital channels for sending and receiving money.

The measure of progress in 2026 will not be the number of new products released, but the confidence consumers and merchants feel when making payments in unfamiliar environments.

The GCC has strong connectivity, advanced financial institutions and international mobility. With thoughtful cooperation, India and GCC can show how digital payment infrastructure supporting cross-border payments can boost economic development and the movement of people.

The future of payments is not where users are, but how reliably their trusted digital infrastructure can travel with them.

The writer is the MD and CEO of NPCI International Payments Limited (NIPL).