AI is evolving from a buzzword to an industry standard. The demand for European payment methods is rising. And shoppers expect more convenience, transparency, and security. European e-commerce payments will undergo major change in 2026.

In this environment, payments are no longer just a means to an end. They actively influence conversion, customer satisfaction, and competitiveness.

Sabrina Flunkert (CEO at Ratepay) and Carlos Sanchez (CPO at Ratepay) shed light on the digital payment trends 2026.

Recommended reading: Ratepay’s 2025 highlights: Our year in review

7 digital payment trends that merchants should keep an eye on in 2026

Here are the biggest payment trends that online merchants can’t afford to ignore this year.

Trend 1: AI as the foundation of the new payment infrastructure

In 2025, artificial intelligence (AI) drove tremendous momentum in e-commerce. And in 2026 it will become the foundation for the payment infrastructure of the future. The focus is shifting away from a general “AI hype” and toward rationalized, tangible, and business-relevant use cases.

Businesses are increasingly beginning to understand where AI creates real added value. And it's precisely this pragmatism that is key for the industry this year.

One area evolving especially fast is the interaction between consumers and payments: “Payments will feel more task-based. Consumers won’t navigate more menus and screens. Instead, they’ll ask agents or LLMs to execute tasks on their behalf,” says Carlos.

Risk management is also becoming smarter: “Companies will only ask for OTP or extra checks when something looks risky. This protects conversion and keeps fraud under control.”

For merchants, this means: AI will not only automate processes but define how payment experiences work going forward. Merchants should implement it in areas where it provides genuine business benefits, reduces friction, and increases security.

Trend 2: When AI goes shopping

AI agents purchase goods and initiate payments on behalf of shoppers without them having to leave the LLM. Agentic commerce is no longer a futuristic dream. Following OpenAI's initial steps toward autonomous AI agents in the fall, tech giant Google followed suit in January.

And it’s not only consumers who benefit. AI driven agents help merchants approve more of the right customers, detect fraud earlier, and streamline back-office operations. A clear efficiency gain across the entire value chain. In the U.S., providers like ChatGPT and Etsy are already piloting suitable models. And Europe will enter its own testing phase in 2026.

With this, the core questions around payments are shifting:

• Who will initiate transactions?
• Who will be responsible?
• How can trust, control, and transparency be ensured?

Payment tokens play a pivotal role. They replace sensitive card details, act as a cross-channel identifier, and store mandates and delegation rights. Leading players will build on top of them with tighter integrations that remove friction from payment rails. Consequently, AI agents can act securely and swiftly on behalf of consumers without merchants losing data sovereignty.

For merchants, this means: Anyone using AI shopping platforms must implement clear approval processes, high security standards, and transparent consent flows. At the same time, a dual presence is crucial. Be visible where customers shop while developing your own AI interfaces. To enable this, merchants must restructure their websites for AI agents, making product information clear, structured, and machine-readable.

Reading tip: How shopping chatbots might transform retail

Trend 3: Smooth Payments with more control for shoppers

Speed, flexibility, and security are no longer just marketing buzzwords – but baseline expectations of shoppers in e-commerce. And with those rising, the need for frictionless payment processes across every channel is growing.

“Smooth payment experiences” bring these expectations to life by embedding them directly into the payment flow. Instead of feeling like a separate process, payments become a seamless, natural part of the shopping journey. With maximum control for shoppers and minimal friction at checkout.

A major driver behind this shift has been the widespread adoption of digital wallets and Buy Now, Pay Later options.

For merchants, this means: A consistent payment experience across channels is no longer a differentiator but a prerequisite. And in 2026, smooth payment experiences are serving as a trust signal. Shoppers are far more likely to return to online shops where payments feel fast, safe, and effortless.

Trend 4: A digital wallet made in Europe

Speaking of wallets: Europe is developing its own alternative to PayPal, Mastercard, and Visa. With Wero, European banks are introducing a unified digital wallet designed to replace fragmented national solutions like Giropay, Paylib, and iDEAL.

After launching peer-to-peer payments in 2024, the first online merchants, such as Eventim, went live in 2025. This year broader e‑commerce acceptance is expected to accelerate, with large European retailers like Decathlon, DPD, and Lidl following suit.

For merchants, this means: Availability shouldn’t be the sole factor when considering whether to integrate Wero. Instead, a compelling payment experience that enhances convenience, trust, and flexibility should determine whether Wero becomes a meaningful addition to the payment mix.

Trend 5: The new wave of EU regulations reshaping payments

New frameworks such as PSD3, CCD2, and broader AI governance laws are set to push controls, improve documentation standards, and strengthen risk assessments in 2026.

PSD3 aims to make fraud significantly harder and harmonize security standards across the EU. Meanwhile, CCD2 raises the bar for consumer protection in digital credit and BNPL solutions. Stricter disclosure requirements, more robust credit checks, and greater transparency are designed to prevent overspending and support responsible lending models.

For merchants, this means: In 2026, regulation is no longer a legal footnote. It becomes a strategic priority. Those who invest early in compliance, maintain a balanced payment mix, and partner with regulated payment providers won’t just meet EU requirements. They’ll turn them into a competitive advantage.

Trend 6: Convenience wins

Digital wallets and BNPL are now common ways to pay. This shows a bigger change in the payments ecosystem: convenience and security are the defining consumer expectations for 2026. And no longer stop at checkout. Today, shoppers expect transparency and simplicity even after they’ve completed the purchase.

At the same time, demand is rising for clear, data‑driven insights across the entire journey. Post‑purchase data, AI‑powered analytics, and tools that automate processes and proactively re-engage customers are becoming critical levers. And speed and accuracy are essential.

For merchants, this means: In 2026, payment excellence spans the entire customer journey. Those who combine a frictionless payment mix with smart post‑purchase experiences reduce support costs, build trust, and increase long‑term conversion.

Further reading: Introducing the Buyer Portal: The new standard for your checkout experience

Trend 7: Flexible short-term credit

In response to economic pressure and tighter budgets, consumers are demanding more control over when they pay. The focus is shifting toward more economically sound models. Alongside popular Pay in 30 Days models, a clear trend toward short‑term installment products is emerging. The reason: shoppers look for flexible payment options without long‑term commitments.

For merchants, this means: Pay in 3 offers a powerful lever to reduce cart abandonment and increase average order values: three transparent, interest-free installments without a complex application process. But responsible implementation will be the real success factor this year, as flexibility and responsibility must always go hand in hand.

Recommended reading: Pay in 3: Turn hesitation into sales

More value and responsibility as payment guidelines for 2026

Even as consumer sentiment remains cautious, the payments industry is entering a more mature and stable phase.

For merchants, this doesn’t mean chasing every emerging digital payment trend. What matters in 2026 is aligning with the right use cases. A balanced, seamless payment mix continues to be a critical success factor across the entire customer journey.

“In the end, shoppers are the ones who decide. That applies to new payment methods like Wero, as well as to agentic commerce and Pay in 3 models. Only solutions that address real, tangible pain points for consumers will win.”
Sabrina Flunkert

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