Why Merchant-Owned Apps Are Retail’s Fastest-Growing Sales Channel

App Sales Growth

57%

Percentage of merchants reporting increased sales through their own mobile apps over the past year.

Biometric Authentication Adoption

42%

Percentage of surveyed merchants offering biometric authentication in their apps.

AI Influence on Purchases by 2026

61%

Percentage of surveyed merchants expecting AI-generated results to influence purchases more than traditional search results.

§ 01 Executive Snapshot

What: Merchant-owned apps are rapidly becoming the fastest-growing sales channel in retail.
Who: Merchants utilizing proprietary apps, Visa Acceptance Solutions (commissioner of the report).
Why it matters: As customer journeys evolve, the efficiency and capabilities of merchant apps could redefine retail infrastructure and AI integration.

57% of merchants using their own mobile apps reported an increase in app sales over the past year.
42% of surveyed merchants offered biometric authentication in their apps, compared to 26% on their websites.
61% of surveyed merchants expect that AI-generated results will influence purchases more than traditional search results by 2026.

The rise of merchant-owned apps coincides with a fragmentation of the traditional customer journey, highlighting a shift in consumer engagement strategies.
As AI begins to challenge existing commerce architectures, merchant apps may serve as a critical interface for both human shoppers and AI agents, providing a controlled environment for transactions.

Immediate market consequence: Merchant apps are outperforming traditional sales channels, leading to a potential shift in how retailers prioritize digital sales strategies.
Long-term implication: The integration of AI with merchant apps could redefine commerce, necessitating robust attribution and transaction tracking systems to accommodate AI-driven purchasing behaviors.

Potential risk: Development costs and app fatigue could deter small to medium-sized businesses from adopting proprietary apps, limiting their competitiveness.
Potential risk: Uneven infrastructure in commerce could hinder the user experience across different merchant sizes, affecting overall sales growth.

Forward signal: Monitoring the adoption rates of biometric features and digital wallet functionalities in merchant apps will provide insights into the evolving payments landscape.
Forward signal: Future developments in AI-driven commerce and the ability of merchants to track AI-generated traffic and sales will indicate the success of this trend in retail.

§ 07

What are merchant-owned apps?

Merchant-owned apps are proprietary mobile applications developed by retailers that are rapidly becoming the fastest-growing sales channel in retail.

Why are merchant-owned apps important for retailers?

They are important because they can redefine retail infrastructure and enhance customer engagement as consumer journeys evolve.

How do biometric authentication features compare between apps and websites?

42% of surveyed merchants offered biometric authentication in their apps, compared to only 26% on their websites.

What risks do small businesses face with merchant-owned apps?

Small to medium-sized businesses may face development costs and app fatigue, which could limit their competitiveness in the market.