What: Payment terminals evolve into multifunctional tools combining AI-driven personalisation, enhanced security, and omnichannel capabilities to meet evolving consumer demands.

Why it is important: This evolution addresses growing consumer demands for seamless, secure, and personalised payment experiences across all retail channels. The payment landscape is undergoing a significant transformation as terminals evolve beyond basic transaction processing.

Contactless and mobile payments are becoming increasingly dominant, with digital wallets and NFC technology driving this shift. The integration of artificial intelligence enables sophisticated personalisation, allowing merchants to offer tailored payment options and gain real-time insights into customer behaviour. Alternative payment methods, including Buy Now, Pay Later (BNPL) and cryptocurrencies, are gaining traction, particularly among younger consumers.

Enhanced security measures, including biometric authentication and AI-powered fraud prevention, are being implemented to protect against increasingly sophisticated threats. The push towards seamless omnichannel payments reflects consumers' expectations for a unified experience across physical and online retail environments, with features such as QR codes and click-and-collect integration becoming standard. This comprehensive evolution positions payment terminals as crucial tools for both transaction processing and customer experience enhancement.

IADS Notes: Recent data from December 2024 shows that mobile payments now account for 70% of global sales, up from 67% in 2023. The impact of AI in retail has been substantial, with 38% of consumers utilizing AI tools for shopping assistance by late autumn. The adoption of alternative payment methods has accelerated, as evidenced by Klarna's expansion into physical retail in the third quarter. Security concerns remain paramount, with Stripe processing USD 31 billion during the holiday season while successfully blocking 20.9 million fraudulent transactions worth USD 917 million. These developments confirm the article's predictions about the future of payment technologies and their impact on retail operations.

Smart, secure, seamless: Payment methods 2025