Payment Processing Methods: Complete Guide to Credit Cards, ACH & BNPL in 2025
Payment processing is valued at US$61.1B as global eCommerce and tech support its growth. Businesses today face more payment options than ever before. Understanding different payment processing methods helps companies serve customers better while controlling costs.
Moreover, 81% of consumers buy directly from the merchant’s website, so a good payment processing integration is important for customer experience and sales. The choice between credit cards, ACH payments, and Buy Now Pay Later (BNPL) can significantly impact both revenue and customer satisfaction.
This guide explores the three dominant payment processing methods transforming commerce in 2025. Companies will discover which solutions best fit their business models and customer needs.
Credit Card Processing: The Digital Commerce Foundation
Credit card processing remains the backbone of digital commerce. Customers have high expectations at checkout. In fact, 70% of global shoppers abandon their cart after adding items. Furthermore, one top reason customers abandon carts is insufficient payment methods.
Traditional credit cards continue evolving with new technologies. Contactless payments now account for more than two out of every three in-person purchases on the Mastercard network. Consequently, businesses must adapt their payment infrastructure to match consumer preferences.
Security Advances Drive Adoption
Payment security has become more sophisticated in 2025. Mastercard’s Decision Intelligence Pro uses gen AI to scan 1 trillion data points to predict in less than 50 milliseconds whether a transaction is likely to be genuine or not, boosting fraud protection rates by an average of 20% and as much as 300% in some instances.
Stephen Bowe, Chief Product Officer at Paymentology, explains the industry shift: “Prevention will become the focus, with tokenization playing a key role. By removing sensitive data from transactions, tokens help make fraudsters’ efforts futile”.
Digital Wallet Integration
Credit card processing increasingly integrates with digital wallets. Digital wallets will continue to evolve into comprehensive platforms, integrating payments, identity, loyalty and even health care — an essential way for people to navigate their daily lives. Additionally, mobile wallets expected to reach 4.8 billion users by 2025, nearly 60% of the global population.
Companies benefit from offering multiple payment options within unified systems. These solutions reduce friction while maintaining security standards essential for customer trust.
ACH Payments: The Reliable Workhorse
ACH payments experienced remarkable growth in recent years. The ACH Network processed more transactions, moved higher dollar values, and established more use cases for businesses and consumers. In fact, In 2024, the ACH Network added more than 2 billion payments to its annual volume, reaching a total of 33.6 billion payments.
The value movement tells an impressive story. More than $86 trillion was moved on the ACH Network last year, representing a 7.5% year-over-year increase. This growth reflects businesses and consumers embracing electronic payments over traditional methods.
Same Day ACH Transforms Speed Expectations
Same Day ACH adoption accelerated significantly in 2025. 109 million P2P payments processed in Q1 2025—a 20% increase year-over-year. Similarly, businesses increasingly demand faster settlement times for cash flow management.
Same Day ACH supports near-real-time settlement, typically within hours. With a transaction limit of $1 million, it’s ideal for urgent payouts like payroll corrections, last-minute loan funding, or time-sensitive borrower repayments.
Business Applications Drive Growth
Business-to-business payments lead ACH growth segments. Business-to-business payments increased by 11.6% in 2024, reaching a total of 7.4 billion payments. Healthcare, payroll, and vendor payments particularly benefit from ACH’s reliability and cost-effectiveness.
Direct deposit volume and person-to-person (P2P) transfers continued a multi-year trend of steady growth. Consumer-initiated payments, such as account-to-account (A2A) transfers and bill payments, also continue to increase.
Buy Now Pay Later: The Flexible Alternative
BNPL services experienced explosive growth across all demographics. The global BNPL payment market is expected to grow by 13.7% on annual basis to reach US$560.1 billion in 2025. Moreover, 31% had used BNPL at least once since BNPL became available according to recent consumer surveys.
Younger generations drive adoption patterns. 40% of Gen Z respondents used BNPL at least once since BNPL became available. 48% of millennial respondents used BNPL at least once since BNPL became available. This demographic shift influences how businesses structure payment options.
Market Expansion Across Industries
BNPL usage extends beyond traditional retail categories. Over the past year, top categories financed by BNPL included apparel (42%), electronics and gadgets (32%), furniture and home decor (26%) and home appliances (22%). Additionally, essential services increasingly offer BNPL options.
The average transaction values continue growing. BNPL results in an 85% higher average order value than when customers use other payment methods. Furthermore, Up to 40% of BNPL sales come from new customers to the retailer.
Consumer Behavior and Risk Considerations
However, BNPL adoption raises important concerns about consumer financial health. Nearly 40% of BNPL users surveyed by Motley Fool Money regret using BNPL once the full cost hits home. Additionally, 58% say they’ve used buy now, pay later to finance a purchase they otherwise couldn’t afford.
Financial institutions monitor these trends carefully. As one Morgan Stanley analyst notes: “If BNPL usage were to grow rapidly later this year, when we expect consumers to be more stretched due to elevated inflation from tariffs and slow income growth, we would potentially take that as a warning sign”.
Choosing the Right Payment Processing Method
Businesses must evaluate payment methods based on customer needs and operational requirements. Transaction costs, processing speed, and customer preferences all influence optimal payment strategy.
Credit cards offer universal acceptance and instant authorization. ACH provides cost-effective bulk processing with reliable settlement. BNPL attracts price-sensitive customers and increases average order values.
Integration Considerations
Modern payment orchestration platforms simplify multi-method processing. Payment orchestration platforms are an established technology, yet their importance continues to grow as they become more sophisticated. Offering businesses a way to manage multiple payment providers and methods through a single interface.
Successful businesses often implement hybrid approaches. They combine credit card processing for immediate needs, ACH for recurring payments, and BNPL for customer acquisition strategies.
Future Trends Shaping Payment Processing
Artificial intelligence increasingly influences payment processing efficiency. In 2025, we will see more companies in the fintech industry implementing Machine learning (ML) and Artificial Intelligence (AI) to prevent payment fraud. These technologies improve both security and user experience.
Cross-border payments represent significant growth opportunities. Cross-border and real-time payments will thrive as businesses embrace digital solutions. Companies expanding internationally must consider regional payment preferences and regulations.
Furthermore, Global cashless payment volumes are projected to increase by more than 80% between 2020 and 2025, from about 1 trillion transactions to almost 1.9 trillion, and to almost triple by 2030.
Bottom Line
Payment processing methods continue evolving rapidly in 2025. Credit cards maintain their position as the universal standard while incorporating advanced security features. ACH payments excel for business applications and recurring transactions with their reliability and cost benefits. BNPL services attract younger consumers and increase sales volumes despite requiring careful risk management.
Successful businesses increasingly adopt multi-rail payment strategies. They leverage each method’s strengths while meeting diverse customer expectations. As digital commerce grows, companies that understand and implement appropriate payment processing methods will maintain competitive advantages in an evolving marketplace.
The key lies in matching payment options to customer needs while maintaining operational efficiency and security standards.
