The retail sector is preparing for a year of steady yet meaningful change in how payments are made, as industry experts say 2026 will be defined by integration and evolution rather than abrupt disruption.
Retailers and payment providers are focusing on technologies such as artificial intelligence (AI), account-to-account (A2A) payments, and tokenisation alongside evolving regulation that could reshape checkout experiences and fraud prevention over time.
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Search trends show growing interest in digital wallet adoption, secure payment solutions and real-time transaction options as part of broader payment transformation.
AI and automation become core to fraud prevention and checkout
Artificial intelligence is moving from experimental to essential in payment systems, with retailers increasingly looking to machine learning to boost fraud detection and streamline transaction processes.
By analysing transaction data in real time and identifying patterns that signal risk, AI systems aim to reduce false declines and improve approval rates at the point of sale and online checkout.
AI-driven fraud detection is a key search theme for merchants looking to safeguard digital payments without adding friction to the customer experience.
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By GlobalDataBiometric authentication is also rising, replacing traditional one-time passwords with fingerprint, facial recognition or passkey methods that increase security while maintaining convenience—an area that digital payment platforms are actively promoting.
For business-to-business (B2B) payment flows, AI agents are expected to automate a growing share of reconciliation and workflow tasks, while consumer-oriented retail adoption remains more cautious as trust evolves.
Growth of account-to-account payments and open banking
Account-to-account payments, particularly those enabled by open banking APIs, are gaining traction as a lower-cost alternative to card-based transactions and a way to reduce checkout friction.
Instant payment systems and open banking initiatives, such as those linked with real-time payment rails, are boosting adoption in regions with strong digital infrastructure, with some markets already showing high usage rates.
In Asia, systems like India’s Unified Payments Interface (UPI) continue to dominate retail payment volumes and demonstrate the potential of A2A as a mainstream retail payment choice.
UPI recently accounted for nearly half of global real-time payment transactions, underlining its influence on digital commerce infrastructure.
Retailers seeking to optimise conversion are exploring these options to reduce costs and improve the customer experience, particularly in e-commerce environments where slower or more expensive card processing can lead to higher abandonment rates.
Regulation and security reshape payment frameworks
New regulatory requirements are expected to take effect in multiple markets in 2026, prompting retailers and payment service providers to review compliance and risk management strategies.
In Europe, updates under the Payment Services Directive (PSD3) are anticipated to extend open banking standards and set timelines for instant payments. Regulatory scrutiny on Buy Now, Pay Later (BNPL) products and the safe use of AI in financial services is also intensifying, with tighter consumer protections likely.
Security remains central, with mandates such as two-factor and risk-based authentication being rolled out in major markets to counter rising fraud. Payments firms are also investing in digital identity verification tools and biometric security to build trust and defend against sophisticated threats.
Retailers operating globally should monitor these regulatory shifts closely, as compliance will influence payment options offered at checkout and the cost structures of retail payment acceptance.
As 2026 unfolds, the retail payments landscape is likely to evolve incrementally, setting the stage for broader structural shifts in the years that follow.
