10 payment trends set to shape UK businesses in 2026

The way people pay is changing. Fast. From tap-to-pay to invisible payments, what was once cutting-edge is now expected. As technology moves on and customer behaviours shift with it, staying ahead of the curve has never been more important for small businesses.

To help you stay ahead, we’ve pulled together the top payment trends set to shape 2026. This year’s takepayments report combines insights from our own payment experts, exclusive consumer research, and the 2026 Global Payments Commerce and Payment Trends Report. As part of the Global Payments family, we’re bringing together the bigger picture with what really matters to UK SMEs.

1. Agentic commerce — payments triggered by intent, not checkout

Agentic commerce describes a new way of shopping and paying, where AI‑powered agents act on behalf of users to handle the buying process. Instead of the customer manually browsing, comparing, and checking out, intelligent agents can search for items, weigh up options, and complete purchases — sometimes without any direct user interaction at the point of payment.

This idea might sound futuristic, but the building blocks are already in motion, and Global Payments’ Commerce and Payment Trends Report found that 72% of businesses are already somewhat familiar with agentic commerce as a concept. As generative AI and autonomous technologies become more advanced, these agents are moving beyond recommendations and towards fully completing purchase flows based on context, preferences, and even past purchase behaviour.

The potential here is huge. Agentic commerce enables payments to shift from being a visible step in the customer journey to something happening in the background — triggered by intent, not just at checkout. It’s all part of the growing expectation for faster, simpler, and more intuitive digital experiences.

Accenture’s 2025 Technology Vision report highlights this shift, noting that AI is evolving from simple automation into autonomy — with businesses preparing for systems and agents that act independently across workflows. In fact, 77% of executives say that building differentiated AI experiences, such as branded conversational agents, will be important or very important over the next three years.

Consumer demand already points in this direction. takepayments’ (now a Global Payments company) recent data on consumers’ preferred payment methods revealed that contactless adoption has overtaken cash for in-store payments, with over 1 in 2 consumers regularly tapping the plastic to make purchases. Notably, 87% of consumers indicated that it’s their preference because it’s the most convenient option, and 44% stated that it’s faster than other methods.  

These findings show that UK shoppers already expect checkout experiences to be quick, seamless, and convenient — all principles that agentic commerce is built upon. As autonomous agents evolve from passive assistants to active buyers, the businesses that meet these expectations through structured data, API-ready systems, and secure automation will be best placed to stay ahead.

What this means for businesses:

As consumers increasingly expect faster and more intuitive experiences, small businesses should consider how to reduce friction in the checkout process — whether online or in-store. That doesn’t mean investing in AI agents overnight, but it does mean laying the groundwork with things like mobile wallet acceptance, faster payment flows, and simplified purchase journeys.

Jodie Wilkinson, Head of Partnerships at takepayments, adds:

“Payments in 2025 are no longer about processing transactions — they’re about enabling seamless experiences. We’re seeing a shift towards intelligence, orchestration, and embedded value, where payments happen in the background, not just at the checkout.”

Gregory Liset, Product Strategy Director at Global Payments, highlights what businesses should consider as agent-driven commerce begins to scale:

“Agentic commerce is still emerging, but it’s meaningful. As it grows, the focus will be on trust and control, making sure customers clearly understand what they’re authorising, and that safeguards are in place around spending limits, consent, and dispute handling.”

2. Traditional payment hardware declines as software-led solutions take over

The point-of-sale (POS) landscape is evolving fast: more and more businesses are moving away from traditional, hardware-based card machines and embracing software-led solutions that offer greater flexibility and better integration with digital tools.

A key part of this shift is the rise of Software Point-of-Sale (SoftPOS), which is technology that turns NFC-enabled smartphones and tablets into contactless payment terminals without the need for additional hardware. Tap to Pay on iPhone by Global Payments is an example of this. It’s a solution that makes taking payments faster and more accessible, particularly for small businesses and sole traders who may not have the extra budget for additional payment hardware. It gives them the option to trade with the technology that they already have.

And adoption is growing fast. According to a report by Juniper Research, the number of merchants using SoftPOS globally is expected to rise by 683% from 2023 to 2028, with an estimated 61 million smartphones processing $11.8 billion in sales at the end of the forecast period. This will be driven largely by Apple’s Tap to Pay solution that’s available in 43 countries around the world (as of December 2025).

This acceptance is gathering pace in the UK as well, with data from UK Finance showing that over half (57%) of UK adults are registered for at least one mobile wallet service, like Apple Pay or Google Pay. Of those consumers, 87% make at least one mobile wallet transaction per month. Interestingly, the option to pay by mobile wallet can actually have an impact on consumer spending. Around 15% of shoppers say they wouldn’t complete a purchase if their preferred mobile or digital wallet option weren’t available.

What this means for businesses:

For small business owners, adopting software‑led payment solutions is about preparing for how customers increasingly expect to pay. Software‑defined terminals can reduce upfront hardware costs, enable mobile and flexible payment acceptance, and provide valuable business insights like real‑time reporting and customer behaviour.

Danielle Adams, Senior Welcome Team Manager at Global Payments, explains why this matters:

“Consumers like quick and easy transactions, and this has almost become the norm; no one wants to wait for change to be counted. Paying for goods has become a very quick transaction now and is widely expected.”

3. Flexible credentials to provide a single, secure payment identity across channels

In 2026, consumers will expect their payment experience to be just as fluid as their digital habits: think switching between devices, apps, and platforms without having to re-enter card details or jump through authentication steps each time. It’s a major pain point that we found amongst online shoppers, with 30% of UK consumers saying that having to input their card details for online transactions was their biggest grievance. That’s where flexible credentials come in.

Flexible credentials enable the use of a single, secure payment identity across multiple devices and channels. Rather than relying solely on static card details, payments can be authenticated using tokenised credentials, biometric verification, or account-linked wallets — adapting to the customer and the context in which they’re paying.

These credentials don’t remove security; they strengthen it. Tokenisation, for example, replaces sensitive card details with a cryptographic token, meaning payment data is never exposed during a transaction. Visa found that tokenisation can reduce the chance of fraud by up to 60%, while still supporting fast, low‑friction experiences. You can learn about more types of card payment security here.

Flexible credentials also lay the groundwork for more advanced payment journeys. When credentials are securely stored and authenticated in the background, customers don’t need to approve every transaction manually. Think, for example, about the Uber app: once a taxi ride is complete, the fare is automatically charged to the user’s stored payment method without the need to manually check out or press ‘Pay’. The user’s credentials are already securely stored and authenticated in the background.

Open banking is another technology helping pave the way for flexible credentials in the UK. Our recent survey found some interesting insights into consumers’ thoughts on it:

• 52% of UK shoppers said they would feel comfortable using open banking to pay online.
• 46% of those surveyed cited the main reason as trust in the method’s security, while 31% stated that it was faster than entering card details.
• However, 38% of people were uncomfortable with it, citing fears of hacking or data breaches.

This highlights an important reality: while consumers are increasingly open to flexible, credential‑based payment methods, trust and education remain critical to broader adoption.

Rather than being a trend in isolation, flexible credentials act as the enabler for the next phase of payments, supporting faster checkout experiences, reducing fraud, and making it easier for payments to move into the background as customer expectations evolve.

What this means for businesses:

The key thing for merchants to remember is that adopting flexible credentials means providing customers with more secure payment options and reducing the barriers that get in the way of a smooth checkout experience. 

For small businesses, embracing tools like tokenisation and mobile wallet authentication can speed up transactions, reduce fraud risk, and meet growing expectations for convenience.

Rona Warne, Head of Marketing UK&I at Global Payments, explains:

“While open banking is gaining traction, especially in the UK, there is still a long way to go before it becomes a fully trusted payment method for the majority of consumers.

For small businesses, there’s an opportunity to lead the charge in educating your customers about the safety and benefits of open banking, but also to be mindful of customer hesitancy.”

4. Invisible payments and frictionless UX as the new expectation

Flexible credentials are laying the foundation — but invisible payments are where things are headed next. As consumers become accustomed to secure, cross-device payment identities, the next evolution is for transactions to occur in the background, without a traditional checkout.

Think of it as a continuation of the same trend: making transactions quicker, smoother, and more embedded into the customer experience. These types of payments are often referred to as invisible because they remove the need for users to actively initiate payment. Instead, they’re triggered automatically when specific conditions are met, like when a journey ends, a product is delivered, or a service is fulfilled. The result is a more intuitive and fluid experience, where payment becomes an almost effortless part of the overall journey.

These experiences reflect what customers are already asking for. According to PwC’s Frictionless Retail – The Future of Shopping report, 43% of shoppers said they would pay more for a product if the overall experience were more convenient, showing just how valuable ease and speed have become. The same study also found that 55% of consumers are comfortable using self-checkout, and 34% already use scan-and-go or self-scanning in stores — clear signs that frictionless experiences are no longer a novelty.

While retail and hospitality are already adopting these methods, other sectors, such as mobility and digital subscriptions, are close behind. For instance, connected car payment systems now let drivers pay for petrol or EV charging directly from their vehicle, without handling cards or cash: a form of context-based, invisible payment that will only grow in reach.

What this means for businesses:

For small businesses, the message is clear: customers expect simple, seamless checkout journeys — and the bar is only getting higher. Whether you’re running a bricks-and-mortar store, a pop-up stand, or an online business, investing in systems that streamline and speed up payment can have a real impact on customer loyalty and conversion rates.

“Consumers expect payments to be effortless, secure, and available across any channel or device. They want fast checkouts, but also visibility and control. Businesses that can offer this balance will come out on top,” says Jodie.

5. Embedded payments and finance to become business as usual

In recent years, embedded payments — where customers can pay directly within an app, platform, or digital service without being redirected — have shifted from innovation to expectation. Whether it’s ordering ahead on the Starbucks app or using Deliveroo to pay for a takeaway without entering card details, seamless in-app experiences are now standard across many industries.

The next evolution? Embedded finance. This includes additional financial services such as lending, insurance, or even cash advances, delivered directly at the point of need within the same digital journey.

This shift isn’t just a future prediction: the UK embedded finance market is projected to reach $35.13 billion by 2030. We’re already seeing top players in the banking industry, like Barclays and NatWest, wade into the conversation as embedded finance infrastructure providers. These already trusted household figures could be instrumental in building consumer trust in embedded finance offerings, helping to accelerate consumer acceptance.

What this means for businesses:

For small businesses, embedded payments can create a faster and more intuitive checkout experience, which we know customers value. Whether through integrating app-based payments, loyalty wallets, or ecommerce plug-ins that keep customers on-site, these solutions reduce checkout abandonment and encourage repeat custom.

Darren Larkman, Field Sales Director at takepayments, shares his perspective:

“Embedded payments and finance will become more prevalent, not just for big brands, but for businesses of all sizes. As consumers grow more comfortable managing payments, subscriptions, or even financing options within a single platform, small businesses have a real opportunity to streamline the customer experience. And while embedded finance might feel like a big leap, starting with simple tools — like loyalty integrations or in-cart instalment options — can help merchants tap into this growing trend without overhauling their entire setup.”

6. Contactless limit rise to meet consumer demand for speed and convenience

Contactless payments have become an integral part of everyday transactions in the UK. According to Mastercard, contactless accounted for over 75% of all of its transactions in 2025. Plus, in the first half of 2025, 87.9% of all POS card payments in Ireland were contactless, showing that Irish consumer behaviour strongly mirrors the shift toward tap‑and‑go spending seen in the UK.

Figures like these are what’s prompting renewed discussions about the UK’s £100 contactless limit. The final half of 2025 saw the Financial Conduct Authority (FCA) reviewing whether to raise or even remove the cap altogether, as Apple Pay and Google Pay already allow unlimited transactions (as long as biometric or passcode authentication is used).

As shoppers come to expect contactless as a solution for all payments, including even higher-value transactions, there’s growing recognition that a hard limit may no longer be fit for purpose.  

But what’s driving this shift? It’s simple: customers want speed and ease. We already know that 44% of UK consumers prefer contactless payments because they are faster than other methods. And when we break it down by age group, we can see that consumers across the board are favouring it over other payment types: 

• 50% of 18–24-year-olds 
• 42% of 25-34s 
• 52% of 35-44s 
• 57% of 45-54s and 
• 62% of over 55-year-olds.  

And now, change is officially on the horizon. In December 2025, the FCA confirmed that greater flexibility will be introduced in setting future contactless limits, giving regulators more room to adjust caps without requiring major legislative changes. Essentially, this means that the £100 cap will be scrapped from 19th March 2026, and banks and card providers will be able to set their own contactless limits. 

What this means for businesses:

Jodie comments: “Contactless payments have completely transformed the way customers pay, and that demand for speed and ease is only growing. As we start to see shifts in regulation — like the FCA’s recent update to remove the contactless limit — it’s clear that the industry is adjusting for higher-value contactless transactions.

For small businesses, the key is making sure their payment solutions can keep up. That means offering mobile wallet acceptance, ensuring their card machines are ready for biometric authentication, and providing customers with a fast, secure checkout, no matter the transaction size.”

Danielle adds her thoughts on the impact it could have:

“I personally feel contactless payments are just as safe as using your bank card and would pose no higher risk by removing the limitation. For consumers who don't have a bank card on them when shopping in a store that sells higher-value products, this may prevent them from making a purchase. Having no limit would mean that those with their phones, Apple Pay, etc., could still purchase higher-valued items without a bank card.  This could potentially lead to more sales for some businesses.”

7. BNPL for subscriptions to grow as customers seek flexibility

Buy Now, Pay Later (BNPL) has quickly become a popular choice for consumers looking to spread the cost of their purchases. It’s also a non-negotiable for merchants, as Global Payments data revealed that 51% of retail businesses said that BNPL boosted their revenue by at least 25%. But in 2026, the trend is expected to evolve, moving beyond one-off payments to power flexible, recurring subscriptions for everyday goods and services.

With inflation and economic uncertainty still shaping spending habits, shoppers are turning to BNPL to manage cash flow more effectively. According to research by Finder, 2 in 5 UK adults (42%) have used a BNPL service as of 2025, up 36% from 2023. The rate of adoption is slightly lower among Irish consumers, with 15% of adults in Ireland having used Buy Now, Pay Later, but 24% report that they’d consider it to fund a purchase in the future. These statistics indicate that it’s gradually becoming a more mainstream option, rather than just a short-term trend. 

While BNPL has historically found success in ecommerce markets, a report revealed that the option of paying via Buy Now, Pay Later among subscription merchants has risen from 5% to 11% in 2023. Plus, there’s definitely an appetite for it: 17% of US consumers said that the availability of BNPL was one of the key features they look at when signing up for a subscription. 

For consumers, this lets them pay for streaming services, gym memberships, or even product refills in smaller instalments over time. Instead of one upfront charge, BNPL for subscriptions gives shoppers more control over recurring payments.

takepayments' own research also points to affordability being a key concern for shoppers: we found that nearly 1 in 5 UK adults reported having no savings, meaning flexible payment options like BNPL play a crucial role in helping consumers access goods and services without financial strain.

What this means for businesses:

For small business owners, offering BNPL — especially for subscription models — can be a powerful way to increase customer loyalty and encourage repeat business. However, more than that, it appears to be one way of breaking down common barriers that consumers face by providing a solution for greater financial flexibility.  

“Buy Now, Pay Later is becoming a tool that consumers rely on to manage their monthly budgets. As this expands into subscriptions, small businesses can benefit from higher retention and more predictable revenue streams,” says Darren.

“But it’s also vital to work with responsible BNPL providers. Transparency and affordability must be prioritised, especially as regulation catches up. Around 34-41% of BNPL users reported making late payments in 2024, which can have long-term effects for consumers, like negatively affecting their credit score. Done right, BNPL can help businesses grow sustainably while offering real value to customers.”

8. Real‑time payments becoming the default for settlement and refunds

Real‑time payments allow money to move from one account to another within seconds, 24/7, giving customers and merchants certainty and immediacy that traditional payment rails simply can’t match.

The Faster Payment System — the backbone of most UK real‑time bank transfers — processed around 5.09 billion transactions valued at £4.2 trillion in 2024. This shows how widely accepted and trusted real‑time settlement has become among both UK consumers and businesses.

In Ireland, the Central Bank confirmed that euro area payment service providers (PSPs) must now be able to receive and send SEPA Instant Credit Transfers (brought into effect on 9th October 2025) — a milestone that officially brings real-time euro payments into the mainstream across the country. As this infrastructure becomes the norm in both the UK and Ireland, the bar for speed and responsiveness in payment processing is rising rapidly.

Real‑time payment systems now operate in more than 70 countries worldwide, giving businesses and consumers alike the ability to send and receive funds instantly — whether domestically or cross‑border — without waiting for traditional batch settlement windows.

What this means for businesses:

For small businesses, real‑time payments can be a genuine competitive advantage. Faster settlement helps improve cash flow, reduces the risk of funding shortfalls, and can strengthen customer trust by speeding up refunds and returns.

At the same time, offering real‑time payouts — for example, to gig workers, partners, or suppliers — can help businesses differentiate themselves in tight labour or supply markets. Likewise, customers increasingly expect quicker refunds and visibility of funds in their accounts, particularly for ecommerce and digital purchases.

To benefit from this trend, businesses should ensure their payment partners and systems support real‑time settlement rails and immediate reconciliation tools. This might include APIs that support instant status updates or dashboards that make tracking fast payouts easier for finance teams.

“As technology evolves and consumer expectations shift, real‑time payments are becoming the default, not the exception. Small businesses that adopt instant settlement will enhance their cash flow and customer satisfaction. It’s about making money move as fast as commerce itself,” says Darren.

9. AI‑supercharged fraud and security becomes essential, not optional

As payments become faster, more digital, and increasingly invisible, fraud is evolving alongside them. In 2026, the challenge for businesses won’t just be preventing fraud; it’ll be doing so without slowing down the customer experience. This is where AI‑driven security is becoming essential.

Fraud in the UK continues to rise, particularly across digital and authorised push payment (APP) scams. According to UK Finance, criminals stole £372 million in the first half of 2025 from unauthorised transactions across payment cards, remote banking and cheques. While banks stopped £870 million of unauthorised fraud in the same six months, the data highlights just how persistent and significant attacks have become.

At the same time, consumer expectations haven’t changed: people still want payments to be quick, seamless, and low‑friction. That creates a tricky balancing act for businesses. Traditional rule-based fraud systems often err on the side of caution, leading to false declines that frustrate customers and result in lost sales opportunities.

But now, AI is helping to bridge that gap. By analysing behaviour in real-time, including spending patterns, device data, and contextual signals, AI-powered fraud tools can identify suspicious activity more accurately, without relying solely on static rules. 

Industry adoption is already well underway, as insights shared by Mastercard highlight how 49% of financial institutions have already integrated AI into their fraud detection systems, and a further 93% plan to invest in AI‑driven fraud prevention over the next two to five years. Notably, 63% of firms cited improved fraud detection as the primary reason for investing in AI.

This shift reflects a broader change in how security is delivered: AI allows fraud prevention to happen quietly in the background, strengthening protection while maintaining the fast experiences customers now expect. As fraudsters increasingly use automation and AI themselves, intelligent, adaptive security will no longer be optional for businesses operating in digital payments.

“AI is shifting from being a supporting tool to becoming core infrastructure; real-time behavioural profiling is replacing static checks,” says Gregory.

“We’re seeing an ongoing arms race between fraudsters and payment providers. As PSPs adopt more advanced tools — particularly AI-driven detection and behavioural analysis — fraudsters are responding just as quickly, using automation and more sophisticated techniques to try and bypass controls. Security needs to be adaptive and smart, capable of assessing risk in real time rather than relying on predefined thresholds.”

What this means for businesses:

AI‑driven fraud prevention means choosing payment solutions that can manage security intelligently behind the scenes.

“AI enables smarter, real‑time fraud prevention. It allows businesses to strengthen security while reducing false declines by analysing behaviour and context, not just static rules. That balance is crucial — customers want protection, but they also expect payments to be fast and seamless,” says Jodie.

As digital payments continue to grow, customers expect to feel protected without being slowed down by unnecessary checks. 

10. Hyper‑personalised and predictive payment experiences

From Spotify Wrapped to personalised email offers, consumers are used to digital experiences that adapt to their preferences. In 2026, that same level of personalisation will become expected in the payments space, with smarter, more predictive systems guiding how, when, and even where customers choose to pay.

Hyper‑personalised payments use customer data, like purchase history, preferred payment methods, location, or loyalty activity, to tailor payment experiences in real-time. This could mean offering specific promotions at checkout, automatically prompting preferred payment methods, or surfacing contextual offers that feel truly relevant.

We’re already seeing this in action. Retailers and platforms are increasingly using AI to tailor the checkout process based on who’s shopping and what they’re buying.

This isn’t just about clever marketing; personalisation can impact performance. McKinsey reports that 71% of consumers expect personalised interactions as part of their overall experience, and a lack of relevance can lead to frustration. On top of that, 78% of consumers are more likely to repurchase after experiencing personalised services.

What’s emerging now is predictive personalisation: using AI to anticipate customer needs and proactively offer payment options or loyalty benefits before the customer even asks. For example, offering split payment options for high-value items, or showing saved loyalty points that can be used toward a purchase, without the shopper having to go looking for them.

These experiences could not only increase conversion but also build long-term loyalty by showing customers that businesses understand and anticipate their needs. Personalised payments are set to become a competitive advantage, especially for small businesses trying to stand out.

What this means for businesses:

Personalisation doesn’t have to mean massive investment in AI infrastructure. For small businesses, it can start with simple tools: loyalty programmes, repeat customer insights, or payment platforms that suggest payment methods based on past preferences.

“Personalisation in payments is about meeting your customer where they are. Whether that’s remembering how they like to pay or offering a split payment option before they ask, it’s the kind of experience that builds loyalty. As the technology becomes more accessible, small businesses can take simple steps to show customers they’re paying attention,” says Darren.

Offering the right options at the right time can reduce checkout friction and demonstrate to customers that their time and preferences are valued.

What this all means for payments in 2026

Payments are becoming faster, more embedded, and increasingly invisible — but behind the scenes, they’re also becoming smarter, more secure, and more interconnected. Consumers expect convenience and speed as standard, while businesses are under growing pressure to balance customer experience, fraud prevention, regulation, and cost. 

In summary, here are the payment trends we think we might see more of in 2026:

• AI agents will take over routine buying decisions, completing purchases with minimal human input.
• Card machines will give way to mobile and software-based payment tools.
• Shoppers will expect one secure identity to pay seamlessly across platforms and devices.
• Payment steps will disappear into the background, triggered by context rather than the checkout process.
• Financial services, like lending and insurance, will be embedded directly into digital journeys.
• Contactless payments will extend to higher-value transactions as hard limits are removed.
• Buy Now, Pay Later will expand into subscriptions, helping customers manage recurring costs.
• Faster payments will become standard, with customers expecting near-instant settlement.
• Businesses will adopt AI-driven tools to detect fraud more proactively and intelligently.
• Payments will become hyper-personalised, with experiences shaped by real-time behaviour and preferences.

“Payments in 2026 won’t be defined by entirely new rails or headline-grabbing technologies, but by execution. The real differentiator will be how well businesses manage complexity: balancing customer experience, risk, regulation, and cost at the same time,” summarises Gregory.

“Much of the innovation will happen behind the scenes, but for merchants, the impact will be very real. Expect better reliability, improved margins, and payment experiences that simply work.”

Preparing for the future of payments

2026 is shaping up to be another big year for the payments industry. What we’ve seen across every trend in this report — from invisible payments to real-time fraud detection — is that speed, security, and seamlessness are no longer optional. They’re what customers expect.

For small businesses, this presents both a challenge and an opportunity. The challenge is keeping up with evolving expectations and new technologies. But the opportunity lies in staying ahead of the curve by offering smoother experiences, more innovative tools, and more ways to pay.

At takepayments, we’re here to help you navigate what’s next. Whether you’re looking to modernise your payment setup, introduce new features, or simply better understand your customers, we’ve got the tools and support to make it happen.

To learn more about how we can help you stay ahead, get in touch with our team.

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John Clark

Product Manager