A study by Lloyds Bank has found that shoppers increasingly expect faster service, flexible payment options and a simpler checkout process.
Changing customer behaviour is now a leading strategic concern for UK retailers, with 91% of business owners and decision-makers saying it has become a top priority, according to new research from Lloyds.
Its report, 'More Than Checkout: The Role of Payments in Retail in 2026', is based on a survey of 1,000 retail leaders and examines how customer expectations are reshaping the sector.
The findings suggest retailers are balancing pressure to improve the customer experience at checkout while also strengthening operations behind the scenes.
The study found that shoppers increasingly expect faster service, flexible payment options and a simpler checkout process.
At the same time, retailers are placing greater emphasis on reporting, reconciliation, cash flow, system integration and operational reliability.
Lloyds said 84% of respondents now expect more from payment providers than they did two years ago.
It also found that 80% see accepting all major cards and digital wallets as important to daily operations while 77% said checkout speed is important to everyday trading.
The same proportion said integrated reporting and reconciliation are significant to running the business.
The report also points to changing expectations around how payments are handled.
Nearly half of respondents said customers now expect mobile or flexible checkout options, and 44% said quicker access to funds will become a competitive necessity.
Lloyds Banking Group business transaction banking managing director David Thomasson said: “UK retail is entering a phase where speed, simplicity and flexibility define competitiveness across the entire customer journey.
“Payments have moved from a point‑of‑sale function to core infrastructure, shaping everything from customer experience on the floor to operational performance and cash flow behind the scenes.”
According to Lloyds, several broader shifts are shaping retail this year.
These include a growing focus on speed across the full customer journey, increased scrutiny of how easy and convenient the retail experience feels, and a move away from relying solely on fixed tills towards a combination of mobile, in-aisle and traditional checkout formats.
The report adds that reliable payment systems, stronger integration and provider support are becoming increasingly important to business performance.
It also says payments now affect more than the transaction itself, influencing customer flow, administration and cash flow management.
Lloyds said the findings point to a widening divide between retailers that are simply keeping up and those investing in stronger operational foundations.
For smaller businesses, simpler payment systems can reduce administrative pressure and support cash flow. Meanwhile, larger retailers are using integrated systems to improve consistency and performance across multiple locations.
