Rising expectations around speed, convenience and flexibility are putting pressure on retailers to rethink the role of payments beyond the checkout, according to new Lloyds research.
Nine in ten UK retail business leaders say adapting to changing customer behaviour is now a top business priority, as shoppers demand faster, easier and more flexible retail experiences.
New research from Lloyds has found that 91 per cent of UK retail business owners and decision-makers now view shifting customer behaviour as a strategic priority, with expectations around checkout speed, payment choice and convenience reshaping how retailers operate.
The findings come from Lloyds’ new report, More Than Checkout: The Role of Payments in Retail in 2026, which explores how payments are becoming a broader operational issue for retailers rather than simply a way to process transactions.
Based on a survey of 1,000 UK retail business leaders, the report found that retailers are facing pressure on two fronts: meeting shoppers’ expectations at the checkout, while also improving the systems and processes that sit behind it.
While speed, flexibility and ease of checkout remain front of mind for customers, Lloyds said retailers are also increasingly focused on reporting, reconciliation, cash flow, system integration and operational resilience.
According to the research, 84 per cent of retailers said their expectations of payment providers are higher than they were two years ago, while 80 per cent said accepting all major cards and wallets is important to day-to-day operations.
Checkout speed was also highlighted as a key trading priority, with 77 per cent of retailers saying it is important to daily operations. The same proportion said integrated reporting and reconciliation is important to how their business runs.
The research also suggests flexible payment options are becoming more important to customers, with 46 per cent of retail leaders saying shoppers now expect mobile or flexible checkout options. Meanwhile, 44 per cent said faster access to funds will become a competitive necessity.
Lloyds said the findings point to five major shifts shaping UK retail in 2026: the growing importance of speed across the customer journey, rising expectations for convenience, the move towards more flexible checkout models, the need for reliable and integrated systems, and the increasing influence of payments on wider retail operations.
David Thomasson, managing director, business transaction banking at 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 pace with customer expectations and those investing in stronger operational foundations.
For smaller retailers, Lloyds said simplifying payments can help ease administrative pressures and protect cash flow. For larger businesses, integrated payment systems are becoming increasingly important in supporting consistency, scalability and performance across multiple sites.
Lloyds said retailers best placed to respond to changing customer behaviour will be those that treat payments as part of how they run the business, rather than simply how they complete a sale.
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