What D2C Shoppers Want: Payment Trends to Watch in 2025
3 min read
In 2025, online payments are no longer just a backend function; they’re a strategic part of the D2C customer experience. For online businesses selling direct-to-consumer, how you handle checkout, payment methods, and post-purchase processes can directly impact conversion rates, average order value, and customer retention.
Below are the key payment trends D2C brands should monitor and act on in 2025.
What do D2C shoppers want in 2025?
1. Frictionless Checkout Journeys Speed and simplicity especially on mobile. They expect near-invisible payments with zero friction.
What PGs should deliver:
Hosted checkout flows optimized for mobile and low latency
1-click and tokenized checkout options
APIs and SDKs that support embedded experiences
Auto-retry and smart routing for failed payments
Smooth checkouts mean higher conversion rates. PGs that help reduce cart abandonment deliver direct ROI for D2C brands.
2. Support for Flexible Payment Methods
End customers these days expect more control over how they pay.
What PGs should deliver:
Multiple payment methods like credit cards, debit cards, netbanking UPI, wallets and more
Flexible payment options increase AOV and drive repeat purchases. PGs must offer modular, configurable billing models that match D2C needs.
3. Digital Wallets as Default
Fast, secure, and device-native payment experiences, especially via UPI wallets like PhonePe Wallet.
What PGs should deliver:
One-tap integration with all major digital wallets
Cross-platform support (desktop, mobile, in-app)
Real-time wallet usage analytics for merchant insights
Digital wallets are now preferred by a majority of mobile shoppers. PGs that prioritize wallet UX will directly improve conversion for their merchants.
4. Seamless Global and Local Payments
Businesses need localized checkout experiences with local currencies, familiar payment methods, and region-specific compliance.
What PGs should deliver:
Multi-currency support with real-time FX
Local payment methods (like UPI)
Smart geo-routing and auto-detection of preferred methods
Regulatory and tax compliance support across regions
Cross-border D2C is growing. Payment gateways that simplify localization empower businesses to expand globally without operational or compliance complexity.
5. Security Without Compromise
Trust. They want their data protected without intrusive extra steps.
Chargeback management and dispute resolution tools
Secure doesn’t mean slow. PGs must enable real-time risk decisions that protect the merchant and user without blocking good transactions.
6. Checkout Personalization & Data Visibility
Fast, relevant, and intelligent checkout – not one-size-fits-all.
What PGs should deliver:
Customizable checkout UIs via APIs or low-code tools
Buyer behavior insights tied to payment data
Real-time dashboards with success rate optimization tools
Data is leverage. PGs that expose actionable insights help D2C brands iterate faster and optimize checkout as a growth channel.
For payment gateways, the role is no longer just to process transactions. In the D2C era, payments are a platform for growth influencing conversion rates, lifetime value, global reach, and overall brand trust.
In 2025, D2C brands are looking beyond reliability. They want payment partners who can enable faster checkouts, support flexible payment methods, unlock actionable insights, and scale with them across markets.
PhonePe Payment Gateway is built for this shift. With high-performance APIs, multi-payment method support, robust analytics, and seamless mobile-first checkout experiences, PhonePe PG helps D2C brands reduce friction, improve success rates, and deliver trust at scale.
