EnterpriseCommerceE-commerce

How Payments Impact the Retail Customer Experience

PayPal Editorial StaffPayPal Editorial Staff

13 January 2026

13 January 2026

4 mins read

Discover how payments are redefining retail in our eBook. Explore how modern payment strategies are helping UK retailers boost conversion, build loyalty, and navigate shifting shopper expectations in a new era of retail.

AI-Powered Retail Experiences

  • Retailers are turning everyday transaction data into actionable insights, enabling faster, tailored checkouts and greater customer satisfaction.
  • 79% of UK retailers now see AI agents as crucial for staying competitive.

Combatting Fraud and Checkout Friction

  • AI-driven fraud detection helps protect merchants by safeguarding revenue.
  • Automated, intelligent payment flows reduce abandonment and streamline authentication, creating frictionless journeys across platforms.

Personalisation at Scale

  • AI analyses customer engagement, browsing, and purchase data to offer the right payment option, whether it’s digital wallets, Buy Now Pay Later, or loyalty rewards.
  • Advanced analytics help retailers anticipate demand spikes, ensure reliability during busy periods, and trigger timely retention strategies for at-risk customers.

Customer Experience

  • Shoppers expect seamless, secure payments at every touchpoint, and AI makes this possible by embedding payment opportunities directly in the purchase journey.
  • Proactive fraud communication is a growing differentiator, building brand trust and reducing support costs.

What should you prioritise?

  • 87% of retailers report higher annual revenue from AI adoption.
  • 94% have reduced operating costs.
  • The most successful companies focus on use cases with clear ROI, like fraud detection and personalised checkout, then build resilience through automation and predictive analytics.
  • Strategic collaboration with providers such as PayPal help to enable rapid deployment of AI-powered payments without exhausting internal resources.

Find out how PayPal Open brings embedded AI and predictive analytics to UK retailers, helping create seamless, secure, and growth-driven payment experiences with less operational complexity.

Download the How Payments Impact the Retail Customer Experience eBook

Download

Download the How Payments Impact the Retail Customer Experience eBook

Download

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This content is provided for informational purposes only. You should always obtain independent business, tax, financial and legal advice before making any business decision.
All data in this article is sourced from PayPal’s eBook How Payments Impact the Retail Customer Experience

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