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Payment trends in 2026: Where innovation, trust and opportunity converge

8 min read · 2026

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  • Digital payments are central to global commerce, seamlessly integrating convenience and security across all channels.
  • AI-driven fraud prevention and agentic commerce are creating more secure and efficient payment experiences, reducing manual intervention and increasing trust.
  • Personalization and resilient infrastructure, powered by data intelligence, can enable businesses to anticipate customer needs and deliver consistent experiences at scale.
  • Payment economics are evolving as instant payments, omnichannel solutions, and super apps gain traction, supported by global platforms and strategic partnerships.
  • The industry is shifting from reactive defences to proactive identity verification, using new technologies to validate legitimate users and AI agents.
  • These 2026 payment trends will empower businesses to turn complexity into opportunity, build lasting trust, and helping them to thrive in an increasingly fast-paced digital world.

 

As we step into 2026, the payments ecosystem is being transformed by a series of overlapping trends, each amplifying the impact of the others and collectively redefining how commerce operates worldwide.

Digital payments, now the foundation of global commerce, build on this secure environment to deliver seamless payments and embedded value across every channel. Their rise is intertwined with the need for personalized engagement and resilient infrastructure, as data-driven intelligence enables businesses to anticipate customer needs and orchestrate consistent experiences at scale.

Fraud prevention is entering a new era powered by autonomous intelligence and foundational models that optimize approvals and combat threats without manual intervention. These innovations are fueled by the same AI and data capabilities that drive agentic commerce and digital wallet adoption, creating a cycle of trust and efficiency.

The economics of payments are being rewritten as global scale meets hyper-local relevance. Whether it is instant payments for small businesses, omnichannel journeys for enterprise merchants, or the emergence of super apps and embedded finance, each advancement is supported by platforms like Mastercard Merchant Cloud and strategic partnerships that blend technology, geography and expertise.

Together, these trends represent more than the sum of their parts. They are shaping a future where every business can turn complexity into opportunity and build lasting trust with customers.

To capture the full scope of this transformation, we asked our thought leaders across our Mastercard Merchant Cloud organization to share their ideas on where these trends will take businesses in the coming year. Their perspectives reveal a unified vision for the future, where complexity becomes opportunity, trust is built at scale and every business is empowered to thrive in a fast-paced digital world.

Agentic Commerce is transforming payments

Artificial intelligence is redefining the way payments work, shifting from reactive defenses to proactive identity verification. This evolution towards Agentic Commerce signals a future where fraud prevention and frictionless experiences coexist, empowering consumers and businesses alike.

Kristian Poulstrup

Director

For years, merchant security meant building higher walls to keep bots out. Agentic Commerce flips this script entirely. We are moving from reactive defense to proactive identity verification. Instead of guessing which traffic is malicious, we can now cryptographically validate legitimate AI agents at the front door using standards like Web Bot Auth.

This shifts the operational reality for merchants. We stop wasting resources fighting false positives and start streamlining the path for high-intent buyers. Through cryptography, an agent can instantly prove its identity and certification, replacing suspicion with trust.

It creates a powerful paradox: higher security with significantly lower friction. The future of fraud prevention isn't about guessing who the bad actors are - it's about mathematically proving who the good ones are. Bot identification is no longer about identifying a threat; it’s about recognizing a customer.

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Alex Wilson

Director

2026 will see tokenization take its next iterative form, into the world of Agentic Commerce, whereby AI will be able to work on behalf of consumers to perform autonomous tasks including the ability to make payments (using a credential on file that is tokenized).

Let’s bring this to life; you will be able to tell your personal AI agent to book you a weekend away. You would set timings, budgets, personal preferences, experiences of interest and allow your agent to proceed to research, suggest and go onwards to book on your behalf.

As we see Agentic Commerce begin to grow in 2026, the aim will be to set concise and standardized security protocols to ensure AI agents act with integrity, can spot good versus bad merchants and the safety of consumers payment details remains paramount (as it must). This is where Merchant Cloud will be focused in 2026; secure, robust and useful Agent Pay use cases.

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Omnichannel and digital payments: powering frictionless commerce

Digital life is reshaping commerce, where payments move beyond transactions to become the backbone of connected experiences. This convergence delivers frictionless journeys, personalized engagement and resilient security, turning complexity into opportunity for merchants and consumers worldwide.

David Budzevski

Senior Vice President

Omnichannel growth hinges on unified tokenization and cloud first architecture that make payments seamless across every touchpoint. By linking a single customer identity to secure credentials, merchants enable frictionless journeys - buy online, pick up in store, return anywhere - while improving authorization rates and reducing fraud. Gateway delivered services like authentication, account updates, and passkeys let businesses ‘implement once’ and activate new features without replatforming. In Europe, one API access to cards and local APMs, plus SoftPOS for in aisle acceptance, ensures consistent experiences from e-commerce to the Point of Sale.

Layer in AI driven orchestration for smart routing and personalized offers, and payments evolves from a cost center to a growth engine. Technology is the connective tissue of unified commerce: it standardizes UX, accelerates time to market, and delivers higher conversion across digital and physical channels, meeting customers where they are with security, choice, and simplicity.

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Roshini Colaco Pawar

Manager

In today’s competitive digital payments landscape, maximizing approval rates requires a sophisticated blend of data-driven strategies.

Unlocking seamless digital payment experiences takes more than luck; it’s all about smart data-driven moves. Imagine machine learning as your vigilant gatekeeper, instantly separating real payments from fraud and keeping things flowing smoothly. Next-level analytics uncover why transactions get declined, so you can tweak fraud filters, boost security, and reduce unnecessary rejections. Predictive insights help fine-tune every step, turning friction into lightning-fast approvals. When payment providers and banks share intelligence, it’s a win-win: together, they read between the lines and anticipate risk.

By weaving smart retries into every payment decision, businesses craft frictionless journeys, drive approval conversions sky-high, and stay one step ahead in the fast-paced world of digital commerce.

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Maria Parpou

Executive Vice President


Payment technology is no longer just a tool; it’s a catalyst for innovation and engagement. With the right partner and solution, technology can unify acceptance, data and identity to recognize customers across channels, tailor offers in the moment and remove friction at checkout.

We’ve done this with Mastercard Merchant Cloud. We’ve reimagined payments as an open, modular platform that simplifies integration and accelerates innovation. Through our single point of entry technology, you have access to gateway, digital wallets, authentication, tokenization, and approval rate optimization so you can orchestrate consistent experiences globally while respecting local compliance. And by embedding this intelligence into every transaction, we can enable merchants to deliver personalized, frictionless experiences that anticipate customer needs.

The result with payment technology like this is personalized journeys, resilient infrastructure, and innovation that turns complexity into opportunity for merchants and their customers worldwide.Layer in AI driven orchestration for smart routing and personalized offers, and payments evolves from a cost center to a growth engine. Technology is the connective tissue of unified commerce: it standardizes UX, accelerates time to market, and delivers higher conversion across digital and physical channels, meeting customers where they are with security, choice, and simplicity.

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Suman Rausaria

Vice President

With the continuous growth of digital wallets, we see them playing an influential role in the evolution of the payments landscape now and in the years to come. Digital wallets are transforming financial services by enabling accessible, affordable, and secure transactions through mobile technology. They play a critical role in addressing global financial exclusion for unbanked and under-banked consumer segments.

Digital wallets are poised to dominate the global payment landscape, with adoption projected to surpass 5.2 billion users by 2026[1] - representing over 60% of the world’s population. They already account for 66% of e-commerce transactions value and 38% of point-of-sale payments value[2].

For consumers, digital wallets have become an integral part of their daily lives, promising convenient payments across multiple channels and providing access to diversified services such as ride hailing, food delivery, online shopping, etc.

For merchants, embracing multi-wallet acceptance and embedded payment flows will be critical to reducing checkout friction and boosting loyalty. Enabling merchants to generate sales and build more impactful relationships with consumers.

Technological innovation will enhance security and experience: fraud prevention and biometric authentication are making payments frictionless and trusted. Wallets are evolving into super-apps, integrating identity, loyalty, and embedded finance, transforming transactions into a value-rich customer journey.

Digital wallets are no longer a trend; they are the foundation of future commerce.

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Deepak Achar

Vice President

For a payment gateway, this shift is major. Gateways must evolve into unified payment experience platforms that combine cards, bank rails, wallets and biometrics into one seamless flow. Intelligence, tokenization and global interoperability are now essential to stay relevant as payments become fast, secure and almost invisible. The global shift to frictionless, embedded, real-time digital payments.

Payments are no longer a separate step at checkout; they’re becoming invisible inside the experience. Digital wallets overtake physical cards, biometrics replace passwords, and tokenization boosts security and approval rates. At the same time, alternate rails such as PIX, UPI and mobile wallets expand coverage and give merchants faster settlement, lower fees and fewer chargebacks. AI becomes deeply embedded in authorization and fraud prevention, enabling adaptive risk scoring and predictive blocking in milliseconds. SoftPOS and tap-to-phone bring universal acceptance with no hardware.

For a payment gateway, this shift is major. Gateways must evolve into unified payment experience platforms that combine cards, bank rails, wallets and biometrics into one seamless flow. Intelligence, tokenizationand global interoperability are now essential to stay relevant as payments become fast, secure and almost invisible.

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Fraud prevention enters the age of autonomous intelligence

Fraud and security are undergoing a seismic shift. Foundational payment models, automated risk workflows and agentic payments are transforming how merchants optimize approvals and combat fraud without manual intervention. Together, these innovations promise frictionless experiences and trust at scale, enabling businesses to stay ahead in an increasingly AI-led digital landscape.

Marek Janos

Vice President

Next year is shaping up to be one of the most exciting years we've seen in fraud and payments innovation. AI has been around long enough now that the main use cases and their utility is starting to emerge. The fraud landscape is shifting from "detection" to "autonomous interaction".  Here are 3 trends that I think will have the highest impact on merchants:

  • Foundational payment models will start to proliferate: Expect a holistic shift where foundational models ingest everything from fraud screens, chargebacks, and authorization data. To optimize approval rates without human intervention. Mastercard is leading in this space with the launch of Payment Optimization Platform last month which has been embedded into Mastercard Merchant Cloud via our payment gateway.
  • Autonomous risk workflows: The days of manually updating thousands of static rules are fading. We will see a shift toward automated, AI-driven engines that learn in real-time, keeping humans in the loop only for high-value decisions to reduce operational overhead.
  • Agentic payments are coming: Fraud models must evolve rapidly to distinguish between a legitimate AI agent shopping for a user and a bot script launching an attack. Merchants will expect that their fraud provider will handle these complex decisions without negatively impacting payment operations.

Merchants who want to be ahead of the curve should be leaning into these trends now.

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Ben Cheviot

Vice President

Privacy is no longer optional, frameworks like the EU AI Act and NIST/OAuth 2.1 demand bias mitigation and phishing resilience. Whilst multimodal verification that combines facial, voice and behavioral cues are fast becoming the gold standard for authentication. Autonomous agents and adaptive algorithms are raising the bar for identity checks, outsmarting deepfakes and spoofing in real time.

Forward-thinking organizations that embrace AI-powered authentication early won’t just fortify security, but they’ll have the opportunity to unlock trust at scale and tap into new markets. Enhanced security with frictionless user experience empowers both merchants and acquirers to interact confidently in an increasingly AI-led digital landscape.

How are you preparing for the next chapter?

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Data-driven intelligence: turning insight into engagement

Data-driven intelligence is transforming how businesses understand and serve customers. By creating a unified source of truth and embedding insights into workflows, teams can anticipate needs, reduce friction and respond proactively. This shared visibility fuels agility and innovation, turning raw information into a strategic advantage that drives personalization and lasting trust.

Flora Wai

Manager

Data-driven intelligence transforms how teams understand and serve customers. By breaking down silos and establishing a unified source of truth, cross-functional teams, from product and engineering to customer success and regional teams, gain the clarity needed to collaborate effectively and act with confidence. When data is democratized and embedded into workflows, every function can anticipate customer needs, reduce friction, and respond proactively rather than reactively. This shared visibility drives consistency in every interaction, aligning strategies with evolving customer expectations.

These insights fuel agility and innovation, powering capabilities within Merchant Cloud to deliver personalization and seamless experiences across channels. Data is more than numbers; it is the cornerstone of meaningful engagement, operational excellence, and lasting trust. By making intelligence available at the right time, we transform decision-making into a powerful lever for customer satisfaction and growth, turning raw information into strategic advantage.

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New economics of payments: fueling commerce from hyper-local to global

The economics of payments is being rewritten as global scale meets local relevance. Merchants expanding internationally must pair card reach with trusted local methods, mobile-first walletsand flexible options like BNPL and account-to-account transfers to maximize conversion. For small businesses, innovation means practical tools—instant payments for cash flow, tap-on-phone for easy acceptance, and integrated solutions that simplify operations. Across every segment, partnerships and platforms like Merchant Cloud enable tailored experiences, blending technology, geography and expertise to turn complexity into opportunity and growth.

Elad Schreiber

Director

The future of payments isn’t just global-it’s hyper-local. The winning acceptance formula is simple: pair the reach of cards with the power of local payment methods that customers know and trust to maximize conversion.

For merchants expanding internationally, mobile-first wallet design is non-negotiable, especially in APAC and LATAM where wallets dominate. Add flexibility with BNPL, QR codes, and account-to-account bank transfers to match how people actually pay today. Finally, scale smartly by leveraging domestic acquiring instead of cross-border routes, this is the engine for highzzer approval rates and frictionless experiences.

When payments feel native, trust skyrockets and conversion follows. The ultimate goal? Blend global scale with local relevance to create a checkout experience that feels like home, anywhere in the world.

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Hansini Arora

Director

For our small businesses, payment innovation goes way beyond technology, it’s about empowering them to thrive in today’s competitive digital economy by focusing on their ‘needs’!


In Merchant Solutions, we’re evolving our strategy on three core industry verticals our merchants belong to: Services, Retail & Trading.   

  • Service sector merchants from healthcare, professional services, need seamless invoicing/Pay by Link solution, remote payments and scheduling tools.

  • Retailers may operate from home or run a small shop and hence need no-code store builders to set up online shop, virtual terminal to collect payment and frictionless checkout.

  • Trade businesses such as manufacturers and wholesalers require large payment processing, credit options and support for local card networks to expand globally.

Building on these needs, here are few key trends in front of mind for us:

  • Instant Payments for real-time cash flow.

  • VAS for integrated operations such as invoicing and store-builder.

  • Domestic Schemes, Alternative Payments like BNPL and digital wallets for flexibility.

  • Tap on Phone POS to turn smartphones into contactless terminals.

As we gear up for 2026, these innovations, backed by AI Agents, will give small businesses the confidence to grow and succeed in a fast-paced digital world.

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Angelique Burger

Director

Through Merchant Cloud, Mastercard supports a diverse customer base – acquirers, merchants, ISVs, orchestrators, payment facilitators, PSPs and more – and this brings about an incredible number of nuances where subject matter expertise within the product make all the difference.

We need solutions to serve every vertical, from traditional retail, food and beverage, hospitality, transit and airlines, to modern marketplaces, agentic commerce and crypto to name a few.

We are proud to support the nuances in such a diverse customer base through our own capabilities, and the capabilities of carefully selected strategic partners who add to the Merchant Cloud geographical reach, vertical focus and subject matter expertise.

Partners play a vital role in allowing Mastercard to address new market trends whilst simplifying the merchant and consumer experiences and distributing our features and services to a broad audience.

 

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