As we look ahead to 2025, Australian businesses stand on the cusp of tremendous opportunity. The last few years have demanded a focus on cost control to navigate inflation and rising supply costs, with 2024 marking a particularly challenging period.

With anticipated interest rate cuts in the US and Australia however, 2025 will likely see an easing of the cost of doing business, setting the stage for renewed growth. In fact, Roy Morgan’s recent Business Confidence report found nearly half (46.3%) of businesses expect to be ‘better off’ financially this time next year. This economic tailwind means businesses will be able to reorient towards growth, prioritising strategic investments to drive new revenue streams and expand their customer base. 

The upcoming year is set to reignite the entrepreneurial spirit of Australia’s businesses.

Here are my top predictions for the year ahead, each brimming with opportunities for those ready to leap forward:

  • BNPL’s expansion into non-traditional sectors: As the cost-of-living crisis continues to reshape consumer spending habits, expect a new chapter for Buy Now, Pay Later (BNPL) as it expands beyond its traditional stronghold in retail. Industries like travel, construction, healthcare and education, will embrace this payment solution as consumers look for more manageable ways to pay for bigger ticket items and everyday living expenses. 
  • Subscription economy growth: The subscription economy is set to flourish, projected to increase from $593 billion in transaction value in 2024 to $996 billion in 2028. As one of the largest recurring billing platforms globally, we’ve seen first-hand how subscriptions offer businesses a powerful advantage: the ability to recover failed payments, gain predictable revenue insights, and unlock new opportunities for growth. In 2025, I anticipate a huge surge as more businesses embrace these models to diversify revenue streams, capture a larger share of customer spending, and foster lasting customer loyalty.
  • Real-time financial systems and the rise of PayTo: The demand for real-time financial systems is rising as businesses seek faster, more efficient ways to manage funds and optimise cash flow. I expect businesses and consumers will begin to shift away from legacy direct debit systems towards PayTo as a result. Today, bulk electronic clearing system (BECS) payments are typically used to move funds from one bank account to another but BECS has downsides for businesses as it can take up to three days for the funds to reach an account, and most banks stop processing funds over the weekend. PayTo also grants consumers full visibility and control over their payments, and they can easily view, manage, pause, or cancel payment agreements in real time. The transition to PayTo will reflect the larger trend towards real-time payments we’ve seen in other parts of the world, such as with UPI in India, Pix in Brazil and PayNow in Singapore.
  • Emergence of stablecoin: As stablecoin gains traction, the benefits of reduced cross-border transaction fees become more enticing. Stripe’s latest research in this space found that just 3% of Aussie consumers are using crypto to pay for goods and I expect this figure will increase by this time next year. While this shift won’t happen overnight, as consumer demand rises, this is a ripe opportunity for forward-thinking businesses to meet evolving payment preferences. 

The most exciting part? These trends aren’t operating in isolation – they’re converging to create unprecedented opportunities for Australian businesses.

2025 isn’t just another year of incremental change — it’s the launchpad for Australia’s next great business revolution. The businesses that embrace these trends now will not only survive but also define the future of commerce.

Karl Durrance is managing director for Australia and New Zealand at Stripe.