Payment advancements can help power retail success.

Retail is fundamentally a balancing act—the industry needs to meet consumer expectations, navigate market conditions, and remain profitable. And constant innovation in the payments environment and consumer experience is a vital part of how the retail world stays competitive. To that end, many businesses are building advanced payment strategies that go beyond simple acceptance to drive real business outcomes. 

Let’s look at the current retail payments ecosystem and the top trends retailers are pursuing to stand out in a crowded landscape.  

A positive outlook for retail

In our latest Payment Strategy Report, How Payment Innovation is Helping Finance Leaders Achieve Revenue Growth, we surveyed over 300 finance leaders to understand how they are driving improved business outcomes with innovative payment solutions. In this article, we will explore some of the key findings from our retail respondents. 

2024 was a strong year for retail. Sales were up 3.6% year over year. Besides revenue growth, retailers reported wins externally and internally, showing increases in customer satisfaction, employee productivity, employee retention, reputation, operational efficiency, and expense management. 

Trend 1: Managing costs through automation/AI

After last year’s success, retailers want to continue the momentum. 2025 raises new questions about supply chain stability, current or pending tariff-related cost increases, and a shrinking labor market. These factors are driving retailers to do more with less, including using cost-effective AI solutions. In our recent study, retail respondents indicated:  

• 69% plan to use more AI/automation in internal operational payment processes (AR).  
• 65% agree that labor shortages have driven AI/automation technology investment in the payment acceptance experience.  
• 74% agree that they are automating processes to reduce staff time spent on managing payment acceptance operations.  
• 60% are investing in upskilling staff to work more with AI/automation. 

Trend 2: Improving payment infrastructure for business

Driven by high transaction volume, consumer push for convenience, and the need for enhanced data security, retailers have invested in resilient payment strategies that are efficient, flexible, and secure. In our survey, 53% feel they have an advanced payment strategy, a 14% increase over our 2023 study. But challenges remain.

Trend 3: Payment innovation for a better consumer experience

The good news? Retailers who get it right reap rewards. Our survey found that retail respondents are prioritizing:

Consumer demand has made mobile apps ubiquitous. Now the goal is innovation—finding retail payment options that deliver value, convenience, and flexibility. Here are a few retail payment systems enhancements innovators are making:

Mobile POS

With a wireless point-of-sale device or a system app on a phone or tablet, merchants can accept payments anywhere with a Wi-Fi or cellular connection. 

Biometrics

Fingerprints and facial or voice recognition authentication increases mobile transaction security.

Text-to-pay

Consumers can pay quickly through a secure portal on any mobile device when you send their payment details via SMS messaging.

Digital wallet options

Bank-owned digital wallets like Paze are increasingly popular and give consumers a fast, convenient way to pay.

Consumer-friendly options also protect merchants.

Installment payment options like buy now, pay later (BNPL) and point-of-sale lending options behind BNPL are more popular than ever. Younger people prefer it to credit cards, especially Millennials and Gen Z consumers who say they have used this service at least once in the past 12 months. Shoppers can spread payments for large purchases out over time without interest, increasing purchasing power, and some providers even let the customer choose their rates and terms. Options like Avvance ensure the merchant receives full payment within 48 hours—giving the consumer flexibility while eliminating instances of non-payment for businesses.

Real-time payments (RTP) boost business processes.

Retailers are embracing real-time payments to streamline operational efficiency and optimize cash flow management. RTPs are payments that are processed instantly, 24/7/365, domestically and internationally. RTP helps retailers with business-specific objectives like paying suppliers, providing refunds, and funding corporate cards. For merchants, RTP ensures their payment card deposit is received via real-time payments over the RTP network with one click.

Retailers know innovative payment strategies help them get ahead of evolving consumer preferences and behavior—it’s how they stay relevant, competitive, and profitable. If you’re ready to explore technologically advanced, flexible retail payment solutions, a qualified payment processor can help.

Download the 2025 Payment Strategy Report to get the latest insights on how other retailers are investing in innovation or contact our team anytime to discuss retail payment processing.

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