As the busiest shopping period of the year approaches, new consumer research shows that artificial intelligence (AI) and frictionless payments are decisive factors for retail players, determining where and how customers spend their money.
A new study from payments technology company Kurv highlights how rapidly AI-driven tools and evolving payment preferences are reshaping the retail landscape, setting clear expectations for merchants heading into peak season.
According to the report, AI is now deeply embedded in the shopping journey. Nearly 62% of consumers use AI tools to compare prices, while 43% rely on AI for personalized product recommendations. Another 40% say AI helps them reduce browsing time, signaling a growing demand for faster, more efficient paths to purchase. For retailers, this underscores the importance of visibility, competitive pricing, and personalization across digital channels, as consumers increasingly arrive at checkout already informed and decisive.
The study also points to checkout friction as a major risk factor for customer loss. Almost one in four Americans avoid stores that do not offer tap-to-pay, while Gen Z shoppers are 120% more likely than average to prioritize contactless payments. These findings suggest that outdated payment experiences can directly translate into abandoned carts and lost loyalty, particularly among younger, mobile-first consumers.
Payment choice itself is driven by a mix of speed, rewards, and trust. The research shows that 50% of consumers prioritize convenience and transaction speed when deciding how to pay. At the same time, 44% value loyalty points and rewards, reinforcing the role of incentives in influencing payment behavior. Security remains equally critical, with 43% of respondents citing it as a top factor in their payment decisions. Together, these factors indicate that retailers must balance seamless experiences with robust safeguards and meaningful rewards.
Despite ongoing economic uncertainty, shoppers are not pulling back entirely. Kurv found that 20% of Americans expect their discretionary spending to increase over the next six months, while 45% anticipate it will remain the same. However, 35% expect spending to decrease, highlighting a cautious but still active consumer base that is likely to favor retailers offering speed, value, and ease.
Taken together, the findings signal a clear message for retailers: AI-driven discovery, frictionless checkout, and modern payment options are now central to winning and retaining customers. As peak shopping season approaches, merchants that fail to meet these expectations risk losing shoppers to competitors that do.
