New research from Lloyds has revealed that 91% of UK retail business owners and decision-makers say adapting to changing customer behaviour is now a top business priority, as retailers face growing pressure to deliver faster, easier and more flexible experiences, both in-store and behind the scenes.
The new report, More Than Checkout: The Role of Payments in Retail in 2026, explores how changing customer expectations are reshaping the retail sector, and why payments now play a far broader role than simply processing transactions.
Based on a survey of 1,000 UK retail business leaders, the new research finds retailers are managing pressure from two directions - what customers expect at the checkout, and what running the business efficiently demands behind it.
Speed, payment flexibility and easy checkout are front of mind for shoppers, while reporting, cash flow, system integration and operational resilience matter just as much for the people managing the business day to day.
91% of respondents said adapting to changing customer behaviour is now a strategic priority, with 84% saying their expectations of payment providers are higher than two years ago.
In addition, 77% say checkout speed is important to daily trading, and 46% say customers now expect mobile or flexible checkout options, with 44% saying faster access to funds will become a competitive necessity.
Issues of speed dominated the responses, with it being critical “across the entire customer journey, from service and fulfilment to checkout and issue resolution.”
Retail is judged by how easy it feels - customers increasingly weigh convenience, service, fulfilment, price and checkout together, raising expectations for frictionless experiences.
In response, retailers are expanding beyond traditional tills, blending fixed, mobile and in-aisle payments to meet changing customer needs.
Payments also now influence far more than the checkout. From managing customer flow to protecting cash flow, payments are now embedded in how retail businesses operate day to day after the checkout.
“UK retail is entering a phase where speed, simplicity and flexibility define competitiveness across the entire customer journey.”
David Thomasson, managing director of business transaction banking for Lloyds Banking Group, 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.”
The report also highlights a growing divide between retailers that are simply keeping up and those investing in stronger operational foundations for the future. For smaller businesses, simplifying payments can ease admin pressure and protect cash flow.
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