Merchants Eye Payment System Constraints as Consumers Embrace Mobile-First Shopping | PYMNTS.com (2025)

The mobile device has become the center of commerce — not just online, but in-store — and using digital payments across those devices has become part of the commerce landscape.

However, the PYMNTS Intelligence report “The 2025 Global Digital Shopping Index: U.S. Edition,” commissioned by Visa Acceptance Solutions, found that although merchants know they must strive to meet consumer expectations, some are concerned they may not be able to keep up, constrained by the technologies they have in place.

More than 18,400 consumers and nearly 3,500 merchants across eight countries weighed in. As for the United States, where more than 3,100 individuals and over 500 enterprises remarked on the state of mobile shopping, 42% of U.S. shoppers used their mobile phones for their most recent retail purchase, no matter the channel in which the commerce was conducted, across websites or among brick-and-mortar shelves.

The data showed that commerce belongs to the young, so to speak, as millennials and Generation Z engaged in digital shopping an average of 62 times per month, above the 45 times of Generation X and the 29 times seen with baby boomers.

Some Worries in the Mix

Although merchants know the value of reaching their end customers on their mobile devices, and that payments are shifting from cash to digital, there was some worry about keeping up with expectations, or staying ahead of the curve and being forward-thinking.

In the U.S., retailers showed evidence of worry that their payment systems may not keep up with evolving demands in the mobile-first era. Some 52% of U.S. merchants said they are concerned their current systems will not meet their needs in the next three years.

The list of mobile features demanded by, and used by, consumers is lengthy when shopping. The 59% of in-store U.S. consumers that detailed the mobile-first features they embraced said they used price and savings features; 15% used payment and financing offers, which indicated that they were cognizant of inflationary pressures and the need to budget.

One key area for innovation is stored payment credentials — something especially important in the U.S. market. The report found that 67% of U.S. shoppers used stored credentials for their most recent online purchases. There’s a need for merchants to offer a seamless way to do so, especially against a backdrop in which 57% of individuals stored credentials with their preferred merchants.

The findings indicated that among U.S. shoppers whose willingness to store payment information with merchants increased in the last 12 months, 59% said ease and convenience were factors, with speed close behind. The merchants themselves pointed to a few headwinds in meeting consumer expectations, as they eyed the overall pace of technological advancement, privacy and security, and customer impact.

There is strong demand among merchants in the U.S. for third-party payment solutions that take these challenges off their plates. The report found that 41% of U.S. shoppers store credentials with merchants most of, or even all, the time.

Only 17.9% of consumers said they “rarely” store credentials with merchants, and a relatively slim 12.6% said they “never” do so. The read-across here is that consumer acceptance and enthusiasm about storing credentials remains on the upswing — and companies must take heed.