Consumers are evolving, and so are their expectations and demands. As the purchasing power of the younger, digital-native Gen Z and Gen Alpha grows and older generations become more comfortable with the possibilities that AI and other new technologies enable, businesses have to work harder to keep them happy and retain their business.  

The rise of the ‘experience economy’ means that consumers are concerned about more than just what they’re buying, which includes the processes of making the purchase itself. They want seamless, secure and personalised payment experiences, but they don’t want them to be complex or cumbersome.

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Viewing payments through a consumer lens

Marqeta’s recent 2025 State of Payments report shows that consumers are shifting from being passive to strategic payment users, with 34% of UK consumers surveyed saying they are interested in AI-powered wallets that can automatically optimize payment choice based on their spending habits and preferences.

They’re demanding smarter tools that make every transaction work hard for them. This includes wanting intelligent payment solutions, such as AI-powered wallets that can automatically optimise payment choice based on their spending habits and preferences, or a digital wallet that recommends which payment method (credit card, debit card or BNPL) to use for each purchase.  

Consumers are also thinking more strategically about their payment methods and are seeking more convenience, choice and, crucially, rewards. According to Marqeta’s report, 49% of consumers surveyed said they’d want one that recommends which payment method, credit, BNPL or debit, to use for each purchase. This places pressure on payment providers to offer solutions that deliver the most value in real-time, based on their specific needs and preferences.

Contrary to the business landscape, the consumer sphere is notoriously fickle. Consumers will sometimes abandon purchases, or retailers entirely, if they experience too much friction during the payments process. Businesses must therefore adapt accordingly to keep them on side.

"Consumer demand for trust has never been higher."

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‍Making seamless, personalised payments a reality

To tackle consumer dissatisfaction in the payments process, businesses must focus on building consumer engagement and loyalty. This means being one step ahead and giving consumers the payment options they need without them having to think about the process. This means making the process hyper-personalised and reducing friction at the same time.

A payment experience that is embedded, driven by data and context, and automatic will reduce friction for consumers. To achieve this, businesses must underpin their payment offering with a sophisticated ecosystem of technologies designed to make the process faster, smarter and more secure.  

These embedded, personalised payment systems will rely on real-time processing and programmable infrastructure. API-driven platforms may provide businesses the flexibility to issue cards, manage funds, and enforce controls dynamically, all while maintaining full visibility into transactions. Just-in-time funding reduces idle balances and ensures funds are available when needed. Meanwhile, tokenisation and digital wallet integration enable instant provisioning, so consumers can start using new payment methods instantly.

The rise of contextual and embedded payments, such as in apps or on-demand services, has made this invisible infrastructure even more critical. Consumers don’t want to see the mechanics behind a transaction, but they will notice when a payment is slow, fails, or feels insecure. Methods such as real-time authorisation or automated spend controls will help deliver smooth payment experiences without compromising oversight or compliance.

What’s more, consumer demand for trust has never been higher. They expect both speed and security and aren’t open to compromise. This drives home the importance of data-driven tools that can identify and flag fraudulent transactions. With the right tools in place, payment convenience and confidence can, and should, coexist.

"It’s much harder to attract new buyers than to surprise and delight the ones you have"

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Shifting from payment provider to experience partner

As consumer demands deepen, payments are becoming about so much more than transactions. Businesses need to look at payments as the next enabler of a great experience, something to keep consumers coming back. They want secure, frictionless payments that seamlessly adapt to their preferences.

Failing to provide this can lead to customer churn, negative reviews or sentiment, and an uphill struggle to replace lost business. Consumers, especially younger generations, want to purchase from brands that are, like them, technologically-native, innovative, and forward-thinking. This feeling can be driven by the payments process.

Ultimately, it’s much harder to attract new buyers than to surprise and delight the ones you have, especially as competition grows. Investing in seamless, embedded payments can help businesses keep and grow their loyal customer base. The key is adopting data-driven insights and technologies that make each consumer feel like they are getting a tailored, first-class payment experience.