Things that caught our eye this week

From shopping trends to financial security, we've noticed key shifts that are shaping 2025. AI is playing a growing role in Valentine's Day purchases, while the EU's new PSD3 directive tightens payment security. Businesses face rising cybersecurity threats, and fintech giant Stripe is making a bold move into crypto with its biggest acquisition yet.

Love in the digital age: AI, gift cards, loyalty rewards

With Valentine's Day around the corner, retailers are preparing for a surge in spending, and new consumer trends could shape how gifts are chosen in 2025. According to Blackhawk Network's latest research, gift cards remain a top choice, with 56 percent of shoppers purchasing them during the 2024 holiday season. Many plan to redeem them in before March, making Valentine's Day a prime opportunity for retailers to capitalize on post-holiday spending.

Artificial intelligence is also playing a bigger role in shopping habits, with 73 percent of consumers surveyed stating they found AI useful for price comparisons and product recommendations during the holidays. This trend could extend into Valentine's shopping, helping buyers find the perfect gift more efficiently.

Meanwhile, loyalty programs continue to influence purchases, particularly among younger shoppers—59 percent reported they used reward points to buy gifts over the holidays, a habit that could carry over into Valentine's Day. Retailers looking to maximize sales may also benefit from gift card exchanges: 80 percent of consumers who returned holiday gifts opted for store credit, providing another avenue for boosting seasonal revenue.

From AI-driven gift selections to strategic use of rewards, shoppers are expected to embrace both convenience and savings this Valentine's Day, shaping the future of holiday spending.

PSD3 set to tighten payment security while boosting inclusivity

After two years in development, the European Union's updated Payment Services Directive (PSD3) is on the horizon, with final guidelines expected soon. While not as revolutionary as its predecessor, PSD3 aims to refine existing regulations to enhance security and streamline the digital payments landscape.

Hannah Fitzsimons, CEO of Cashflows, described PSD3 as a "transitional" directive rather than a complete overhaul. PSD2 introduced open banking to transform the financial industry. PSD3, however, focuses on strengthening consumer protections while maintaining a balance between security and payment efficiency.

One significant change involves Strong Customer Authentication. Under PSD3, businesses can now use two authentication factors from the same category rather than requiring distinct types, making compliance more flexible. Additionally, the directive emphasizes inclusivity, ensuring that vulnerable populations—such as those without smartphones or with disabilities—are not excluded from secure online transactions.

For businesses, the key challenge will be educating consumers about these changes to maintain trust while ensuring a seamless shopping experience. As PSD3 rolls out, companies will need to adapt quickly to remain competitive in Europe's evolving payments ecosystem.

Cyber resilience must be a 2025 priority, warns security report

Cybersecurity threats are evolving at an alarming rate, with over 2,000 new software vulnerabilities discovered each month, according to a recent report from German cybersecurity firm ONEKEY. The company warns that many organizations remain ill-prepared for the growing risks, particularly in the operational technology and Internet of Things sectors.

A survey of 300 industry executives revealed that while two-thirds acknowledge the need for stronger cybersecurity measures, many are constrained by limited budgets. Only 34 percent of participating companies consider their cyber resilience funding to be adequate, leaving the majority vulnerable to potential attacks.

Most companies rely on contractual security measures with their vendors, yet recent high-profile breaches involving major firms like Cloudflare and Cisco suggest that legal agreements alone are insufficient, researchers noted. Instead, they added, organizations should prioritize proactive strategies such as penetration testing, intrusion detection, and segmented network security to mitigate risks.

Despite the ongoing threats, only 32 percent of companies have structured processes in place to learn from cyber incidents and improve defenses. "Cyber resilience should be at the top of every company's agenda in 2025," said ONEKEY CEO Jan Wendenburg, emphasizing the urgent need for increased investment and preparation.

Stripe bets big on crypto with $1.1B Bridge acquisition

Payments provider Stripe is making its largest-ever acquisition with the $1.1 billion purchase of Bridge, a stablecoin payments platform co-founded by former Coinbase and Square executives. The move signals Stripe's deepening commitment to cryptocurrency as it integrates stablecoin transactions into its services.

Bridge, founded in 2022, developed an API that enables businesses to accept stablecoins for transactions. Prior to the acquisition, the company had raised $58 million from major investors, including Sequoia Capital, and was valued at $200 million in 2024.

Stripe co-founder and CEO Patrick Collison expressed enthusiasm about the deal, noting in a recent post on X that stablecoin adoption is growing at an unexpected pace. "In the coming years, everyone programmatically moving money will likely want a stablecoin strategy," he wrote.

This acquisition follows Stripe's expansion into crypto payments last year, including enabling crypto purchases in the EU and launching a "Pay with Crypto" feature for merchants. With Bridge now under its umbrella, Stripe is positioning itself as a major player in the future of digital payments, analysts noted.

Whether you want to upgrade your POS offerings, find a payment gateway partner, bone up on fintech regs or PCI requirements, find an upcoming trade show, read about faster payments, or discover the latest innovations in merchant acquiring, The Green Sheet is the resource for you. Since 1983, we've helped empower and connect payments professionals, starting with the merchant level salespeople who bring tailored payment acceptance and digital commerce tools, along with a host of other business services to merchants across the globe. The Green Sheet Inc. is also a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals.

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