The latest EHI Retail Institute survey, highlighted ahead of EuroCIS 2027, illustrates how dramatically payment habits have changed. In Germany, cash represented 78.7% of retail turnover in 1994 but just 32.3% in 2025. Over the same period, cards rose from 6.2% to 65.1%. A similar shift is evident in Britain, where UK Finance reports that cards accounted for 64% of payments in 2025, compared with just 8% for cash by transaction volume. Although the figures measure different aspects of payment behaviour, they highlight a shared challenge for UK retailers: offering more payment choices without making checkout slower or more expensive.
This transition involves more than replacing notes with plastic. Retailers now manage cards, digital wallets, bank transfers and increasingly automated checkout systems. Each option brings different costs, technical demands and customer expectations. Payment has become part of the shopping experience, not merely its final step.
For small and mid-sized businesses, the challenge is particularly practical. Customers now expect to know upfront which payment methods are accepted, how long a refund will take and whether any limits apply. That expectation has been shaped online: comparison sites and reviews of credit card casinos, for instance, routinely rate operators on how quickly money moves in and, more importantly, back out. Shoppers bring the same scrutiny to the high street. For retailers, this means any new payment option must fit existing point-of-sale software, staff training and accounting processes without slowing that experience down.
Cards are winning, but the mix is changing
Within the 65.1% share of retail turnover accounted for by cards, payment habits are evolving. Almost one in five retail card payments (19.3%) was made by smartphone in 2025, according to EHI. Apple Pay was the most widespread mobile method at German checkouts, followed by Google Pay. For stores, accepting cards now means supporting wallets, devices and contactless journeys reliably, particularly when queues grow.
The quiet rise of account-to-account payments
Pay-by-bank attracts attention because money moves directly between bank accounts without card interchange or scheme fees. Transactions often use instant transfer infrastructure, creating potential savings for merchants. Providers featured in the EuroCIS preview expect account-to-account payments to expand, although they do not anticipate an immediate replacement for cards and wallets. Retailers should regard it as another useful choice rather than a universal solution.
Wero, launched in 2024 as a peer-to-peer wallet, has since expanded into e-commerce, with retailers including dm-drogerie markt, Lidl and Decathlon adopting it. Backed by the European Payments Initiative, it reflects a wider interest in bank-based checkout. British merchants can see a parallel in Open Banking-powered payment links, which let customers authorise purchases through familiar banking services.
Speed matters on the way out, too
Instant payments raise expectations about refunds as well as purchases. Customers who can transfer money in seconds may question why refunds for returned goods or cancelled orders, as well as marketplace payouts, take days to arrive. Even where banking processes impose delays, clear timing and regular updates can make the experience less frustrating.
Speed also depends on what happens behind the scenes. Retailers need accurate order records, clear refund policies and effective communication between customer service and payment providers. Without those foundations, even a technically fast transfer can produce a confusing customer experience.
Payments are moving into the aisles
Retail payment innovation is changing not only how customers pay, but also where and when transactions take place. As stores introduce more automated shopping experiences, the traditional checkout is becoming just one of several ways to complete a purchase. These developments are reshaping the role of in-store technology and opening the door to more advanced forms of commerce.
Self-scanning and smart trolleys
Payment no longer has to happen at a staffed till. EHI estimates that 15,000 to 16,000 German stores offer self-scanning devices. Smart trolleys can combine a touchscreen, scanner and contactless payment, allowing customers to finish shopping without a conventional checkout. Automated formats such as Rewe Pick & Go go further, using cameras and AI-supported systems to track purchases and charge customers through an app.
Agentic commerce
Another emerging possibility is agentic commerce, in which AI software assists with product research, selection and payment. Mastercard and Visa have been exploring approaches to transactions initiated by authorised AI agents. If these systems gain traction, retailers will need dependable authentication, fraud controls and payment integrations that accommodate software-driven purchasing without sacrificing customer consent.
What retailers should do before peak trading periods
For UK retailers preparing for peak shopping periods, payment readiness should focus on reliability, value and clear communication. Four practical checks can help teams identify weaknesses before increased transaction volumes expose them.
Audit your checkout
Review which payment methods customers use most frequently, then compare that behaviour with checkout abandonment and failed transactions. Check mobile journeys separately from in-store terminals, since friction can appear in different places. Ask frontline staff about recurring problems, and verify that customers can complete payments without unnecessary steps.
Look at total cost, not headline fees
A lower processing fee does not automatically mean a cheaper transaction. Factor in integration, reconciliation, fraud prevention and support costs, alongside the effect on completed sales. Pay-by-bank may improve margins, but only if customers are comfortable using it. Small, measured trials can reveal whether the savings survive real-world checkout behaviour.
Treat refunds as part of the payment journey
Customers remember a difficult refund long after a smooth purchase. Publish realistic refund timelines and explain the difference between approving a refund and the money reaching a customer’s account. Where faster routes are available, consider offering them. Consistent status messages can reduce avoidable support requests and preserve confidence during busy returns periods.
Choose flexible infrastructure
Adding a separate connection for every new payment method creates maintenance work and makes troubleshooting harder. As CCV’s Rainer Birkner has argued, central integration is easier to maintain than multiple individual interfaces. Choose systems that support existing checkout channels while leaving room for new methods, security requirements and future upgrades.
These decisions should be guided by evidence rather than assumptions. Comparing transaction data before and after changes helps retailers spot unintended friction and decide which improvements deserve wider rollout.
Preparing for the next generation of retail payments
The landscape will continue changing. European policymakers are considering the framework for a digital euro, while payment providers pursue new bank-based and automated models. UK retailers do not need to adopt every innovation immediately. They do need payment systems that remain straightforward for customers, transparent about costs and resilient when demand peaks.
Terry Clark is the Publisher and Content Director of 365 Retail, with more than a decade of experience covering retail design, technology innovations, store openings and the wider retail industry. He also works closely with leading retailers, suppliers, agencies, events and industry awards across the UK.
