87% of Merchants Say Checkout Still Falls Short

§ 01 Executive Snapshot

• What: A report reveals that 87% of merchants believe their checkout processes need improvement.
• Who: The report was produced by PYMNTS Intelligence in collaboration with Visa Acceptance Solutions, based on a survey of 1,185 retail merchants.
• Why it matters: The findings highlight the retail sector's adaptation to digital shopping and the importance of improving checkout experiences amidst growing AI influence.

§ 02 Key Developments

• A March 2026 survey included 1,185 retail merchants from the United States, Brazil, and the UAE.
• Nearly 90% of merchants acknowledge that their checkout experiences require enhancement.
• Over half of the merchants actively use discounts or surcharges to influence customer payment methods.

§ 03 Strategic Context

• The transition to mobile apps as a primary growth channel indicates a significant shift in how merchants engage customers in digital shopping.
• The increasing role of AI agents in shopping is expected to reshape consumer behavior and payment choices, although many merchants currently lack the ability to track this influence.

§ 04 Strategic Implications

• Immediate implications include the need for merchants to upgrade their checkout technologies to keep up with consumer expectations and technological advancements.
• Long-term, merchants may face challenges in understanding and measuring the impact of AI-driven shopping, which could affect sales strategies and customer loyalty.

§ 05 Risks & Constraints

• A significant risk is the potential inadequacy of current payment technologies to meet evolving market demands within the next three years.
• Merchants also face challenges in accurately attributing sales to AI-driven traffic, which could hinder strategic decision-making.

§ 06 Watchlist / Forward Signals

• Merchants should monitor advancements in AI technology and its integration into the shopping experience to remain competitive.
• Future developments that improve visibility into AI-driven sales and checkout processes will be critical for merchant success.