Mobile Payment Trends 2026: What Retailers Need to Know

Payment preferences are shifting faster than ever. Customers expect options—tap their phone, split payments, or pay over time. Retailers who don't offer these options are losing sales to those who do.

This guide covers the payment trends you need to understand and act on in 2026.

Trend 1: Contactless Becomes Default

Tap-to-pay isn't a nice-to-have anymore—it's expected. 53% of in-store transactions are now contactless, up from 26% pre-pandemic.

What's Driving Adoption

• Speed: Tap transactions are 2-3x faster than chip insert
• Hygiene: Post-pandemic preference for touchless
• Ubiquity: Every new phone and card supports it
• Generation shift: Gen Z/Millennials rarely carry cash

Action Items

• Ensure all terminals accept contactless (NFC)
• Accept Apple Pay, Google Pay, Samsung Pay
• Train staff to encourage tap payments
• Display "tap to pay" acceptance clearly

Trend 2: Buy Now, Pay Later (BNPL) Goes Mainstream

BNPL usage has exploded. 25% of online shoppers use services like Klarna, Afterpay, and Affirm. It's moving in-store too.

Why BNPL Works

• Higher conversion: 20-30% lift in checkout completion
• Larger baskets: 30-50% higher average order value
• New customers: Attracts younger, credit-light shoppers
• Interest-free appeal: No cost to customer (usually)

Considerations

• Higher merchant fees (3-6% vs. 2-3% for cards)
• Delayed settlement (varies by provider)
• Brand reputation concerns with some BNPL providers

"Adding Afterpay increased our average ticket by 42% for customers who chose it. The higher fee was more than offset by the incremental revenue."

Trend 3: Digital Wallets Dominate

Digital wallets (Apple Pay, Google Pay, PayPal) now account for 49% of global ecommerce payments. They're growing faster in-store too.

Why Customers Love Wallets

• No need to carry physical cards
• Faster checkout (biometric authentication)
• Card details never shared with merchant
• Works across devices

Trend 4: QR Code Payments Expand

While dominant in Asia, QR payments are growing in the US for specific use cases:

• Table ordering: Scan, order, pay without staff
• P2P payments: Venmo, Cash App, Zelle QR codes
• Invoices: Scan to pay bills
• Tips: QR code tip jars

Trend 5: Biometric Authentication

Face ID and fingerprint payments are becoming normal:

• Phone payments: Already biometric-authenticated
• Amazon One: Palm scanning for payment
• Cards with fingerprint: Coming to market

Expect biometric POS authentication to expand over the next 2-3 years.

Trend 6: Real-Time Payments

Traditional ACH takes days. Real-time payment rails (FedNow, RTP) enable instant settlement:

• Pay suppliers instantly
• Receive funds immediately (no batching)
• Better cash flow management

What Retailers Should Do Now

Immediate Actions

1. Accept all major wallets: Apple Pay, Google Pay minimum
2. Upgrade terminals: Ensure NFC contactless support
3. Evaluate BNPL: Test at least one provider
4. Speed up checkout: Reduce friction everywhere

Medium-Term Planning

1. Unified payment experience: Same options online and in-store
2. Payment data integration: Connect payment data to customer profiles
3. Negotiate rates: Volume gives leverage

Payment Processing Costs

Payment Type	Typical Rate
Debit (PIN)	0.5-1.0% + $0.20
Credit (Card Present)	1.5-2.5% + $0.10
Credit (Card Not Present)	2.5-3.5% + $0.30
Mobile Wallet	Same as card type
BNPL	3-6% + $0.30

Conclusion

Payment flexibility is table stakes in 2026. Customers expect to pay however they prefer—and they'll shop elsewhere if you don't offer it.

Start with the basics (contactless, major wallets), then expand based on your customer demographics. Younger customers want BNPL; business customers may want invoicing. Meet them where they are.