Solving for Speed and Security

2025 payment trends for midsize businesses

BY MIKE CUMMINS

IN TODAY’S CHANGING FINANCIAL LANDSCAPE, midsize companies are navigating a complex mix of payment technologies, fraud risks, and operational demands. Citizens’ fourth annual Payment Trends Survey reveals that while the shift toward real-time and digital payments continues, many businesses still rely on traditional methods — highlighting both opportunity and inertia in the market. Here are the top five insights from the survey:

CHECKS PERSIST, BUT INSTANT PAYMENTS SURGE

Despite the rise of digital solutions, nearly half of midsize businesses still use checks. This reliance reflects legacy systems and stakeholder preferences, but it also underscores the need for modernization. Instant payments, like Real-Time Payments (RTP) and FedNow, are now used by 73% of respondents, signaling a strong pivot toward speed and efficiency. These platforms offer real-time settlement, which is increasingly critical for managing cash flow and vendor relationships.

FRAUD PREVENTION TAKES CENTER STAGE

Fraud remains a top concern, particularly for smaller midsize firms. The survey shows that these businesses experience fraud more frequently than their larger counterparts. In response, treasury teams are deploying a mix of mitigation strategies, with real-time fraud detection emerging as a standout. As payment velocity increases, so does the need for robust, AI-powered risk management tools that can adapt to evolving threats.

THE RISE (AND FALL) OF B2C PAYMENT PLATFORMS

Interestingly, B2C platforms like Venmo, PayPal, and Zelle — once popular among midsize firms — have seen a decline in usage since peaking in 2024. This shift may reflect growing concerns around consumer-grade security and the need for more enterprise-ready solutions. While these platforms offer convenience, they often lack the controls and integration capabilities required by corporate finance teams.

EMBEDDED FINANCE AND AI: THE NEW FRONTIER

Treasury leaders are increasingly embracing embedded finance and AI-driven tools. These technologies enable seamless integration of payment functions into broader financial workflows, enhancing visibility and control. Embedded APIs allow for real-time data exchange, while AI supports predictive analytics and automated decision-making. Together, they represent a powerful toolkit for modernizing treasury operations.

BALANCING INNOVATION WITH PRACTICALITY

While the appetite for innovation is strong, many midsize companies face challenges integrating new tools into legacy systems. The speed of money movement demands not just faster platforms, but smarter ones — capable of managing risk, ensuring compliance, and delivering insights. CEOs and CFOs must weigh the benefits of transformation against the costs of disruption, ensuring that payment strategies align with broader business goals.

LOOKING AHEAD

The Citizens 2025 Payment Trends Survey paints a picture of cautious transformation. Midsize firms are moving toward a more digital, secure, and efficient future — but the journey is uneven. Success will depend on leadership’s ability to prioritize investments, foster agility, and build partnerships that support long-term growth.

As we look ahead, one thing is clear: the future of payments is not just faster — it’s smarter. For midsize businesses, that future is already taking shape.

Mike Cummins is the head of treasury solutions at Citizens.