While adding a contribution manually, the first step is to find a contact. If the contact is not found, I remember being able to select 'new contact' from the bottom of the autocomplete list. As at 4.7.25 is it possible to add a contact from the contribution page or do we need to move to 'new individual' if the contact is not found while taking payments?
It does show up the link to create contact when no match is found.
From your shared image it looks like the user has limited permission to create contact/access CiviCRM profile or also check if 'New Individual' Profile is enabled under Reserved profiles.
"is it possible to add a contact from the contribution page"
Yes, when you visit the Contribution page select the 'want to do this as a different person' eg from http://dmaster.demo.civicrm.org/civicrm/contribute/transact?reset=1&id=1 or just bookmark the link http://dmaster.demo.civicrm.org/civicrm/contribute/transact?cid=0&reset=1&id=1
the important bit is the cid=0
Then you can fill out the Contribution Page as anonymous and use that approach to create the Contact.
If this isn't a useful Answer then I really haven't understood your question.
