#United States #Digital Payments #Tokenization #AFP Survey #Rockville, MD

Introduction

The landscape of financial transactions is evolving rapidly, propelled by advancements in technology and increasing demand for efficient payment systems. The 2025 AFP Digital Payments Survey indicates that approximately a third of organizations are now aware of tokenized purchases, a significant leap in understanding about digital payments. This article delves into the key findings of the survey and explores the implications for financial professionals navigating this transformation.

Tokenization in Emerging Digital Payments

Tokenization involves substituting sensitive payment data with unique identification symbols (or tokens) that retain all essential information about the data without compromising its security. According to the survey, 30% of respondents reported familiarity with various concepts surrounding digital payments, including cryptocurrencies, blockchain technology, stablecoins, and central bank digital currencies (CBDCs). Financial experts view domestic payments as the primary opportunity for employing these emerging technologies, potentially revolutionizing how transactions are conducted.

Future Strategies and Trends

The survey reveals a growing urgency among organizations to update their payments strategies, with 76% expecting to make significant changes within the next three years. Key areas for improvement include:

• - Exploring New Payment Formats: About 72% of respondents plan to adopt new technology capabilities to enhance payment formats and channels.
• - Upgrading Payment File Formats: 40% aim to update or migrate their current payment file formats to align with modern requirements.
• - Developing Comprehensive Strategies: 38% are focused on outlining a range of baseline payment types to optimize their operations.

These shifts are not just about adopting new technology but also about enhancing operational efficiencies and improving customer experiences.

Cross-Border Payments and Digital Transformation

In addition to the domestic focus, the survey highlights that 87% of organizations engage in cross-border payments, reflecting an increase of 9 percentage points from the previous year. Larger organizations, particularly those publicly owned or with yearly revenues exceeding $1 billion, are more inclined to participate in such transactions compared to smaller firms. This trend underscores the growing importance of digital payment solutions that accommodate global business practices.

The Decline of Traditional Payment Methods

Notably, the use of checks for B2B payments has fallen to 26%, representing a 7 percentage point decline since 2022. This trend signifies a broader shift away from traditional payment methods toward faster, more efficient alternatives. Over 30% of organizations report that adopting faster payment systems has yielded positive impacts, with 28% utilizing them specifically for B2B transactions.

The Impact of Executive Orders

Despite these trends, only 5% of organizations indicate that the Executive Order 14247 issued in March 2025 has stimulated a noticeable shift toward digital payments within their B2B transactions. Interestingly, among those shifting towards digital methods, nearly 20% cite the executive order as a contributing factor in their decision-making processes. This highlights the influence of regulatory frameworks on the adoption of new technologies.

Insights from Industry Leaders

Pat Culkin, the President and CEO of the AFP, emphasizes the vital need for organizations to accelerate their payment strategy upgrades, driven by technological advancements and the pressing demand for faster transactions. He asserts, "AFP is dedicated to equipping financial professionals with the insights to thrive during their digital payment transformations."

Echoing this sentiment, Martha Beard, Managing Director at J.P. Morgan Payments, points out that the survey results reveal a lasting trend toward digital payment solutions. J.P. Morgan is committed to supporting organizations in their digital transformation, where the safety and efficacy of financial transactions are paramount.

Conclusion

The findings of the 2025 AFP Digital Payments Survey illustrate a pivotal moment for financial professionals as they increasingly recognize the possibilities offered by tokenization and digital payments. It is crucial for organizations to stay ahead of the curve by adapting their payment strategies in alignment with emerging technologies. The financial landscape is changing; staying informed and prepared is essential for success.