The one thing that never changes is that everything changes — and merchant expectations are no different.
What surprised us in the 2026 Merchant Insider Report, which surveyed key leaders and decision-makers across more than 1,500 businesses in the US, UK and Australia, wasn’t that expectations are evolving. It was the scale and speed of the shift.
Businesses are placing greater importance on embedded finance capabilities than ever before. They’re also actively weighing their current business management platforms against newcomers built to address industry-specific needs and pain points.
But other findings point to something bigger: a fundamental change in how merchants evaluate software providers. Security and fraud protection are part of the product experience now, and payments have evolved from a behind-the-scenes function into a core part of how merchants experience the platforms they run their businesses on.
For software providers, these changes create both a retention challenge and a competitive opportunity.
Payment experiences are driving retention
One of the clearest themes in this year’s research is that payment experiences directly influence whether merchants stay or leave. In fact, 99% of merchants surveyed said embedded finance capabilities matter to their business, and 82% of businesses said they would likely switch platforms for better payment capabilities.
At the same time, businesses also report they’re relying more heavily on their software platforms than ever before. When asked, 85% of respondents said their management software is more important to their business today than it was 3-5 years ago.
That combination is reshaping the retention conversation. Merchants are more reliant on their software for day-to-day operations than ever before, while simultaneously being more concerned with the payment experience than they ever have been.
Slow onboarding, unreliable integrations delayed access to funds or limited payment options are no longer minor annoyances. They’re turning points in the retention conversation in an increasingly competitive software market.
Frictionless workflows are no longer optional
The report suggests merchants are increasingly evaluating platforms through the lens of operational efficiency. When businesses were asked why they were considering switching providers, the top reasons included:
- Newer and more innovative options entering the market
- Too much time spent managing the current solution
- Integrations that no longer meet business requirements
- Poor customer payment experiences within the software
Historically, retention was simpler. Businesses were often reluctant to go through the disruption of switching platforms, even when frustrations existed.
But that dynamic is changing. Today’s merchants are more aware of the alternatives available to them — especially vertical-specific platforms designed around their industry needs and workflows.
As expectations rise, tolerance for friction is shrinking, and merchants increasingly view the payment experience and platform experience as one and the same.
Embedded finance expectations are on the rise
This year’s research also shows that merchants are thinking beyond basic payment acceptance.
Businesses increasingly expect platforms to help them manage outgoing payments, improve cash-flow visibility, access funds faster and streamline financial operations inside a single workflow. This helps explain why embedded finance capabilities continue to gain traction across industries.
Merchants are not necessarily looking for flashy financial tools. In many cases, they want practical capabilities that reduce operational complexity and help them run their businesses more efficiently.
For software providers, the takeaway is straightforward: merchants increasingly expect financial workflows to feel embedded within the platform experience itself.
The platforms winning loyalty in 2026
The software providers winning loyalty are the ones making payments feel native to the software experience.
They’re treating payments and embedded finance as part of the core product experience — supported by reliable integrations, strong onboarding, visible security measures and continuous innovation.
The report reveals several patterns that consistently build merchant confidence. The common thread across all of them is trust.
When merchants trust the platform experience, they are more likely to deepen adoption, expand usage and remain loyal over time.
Ready to see the full findings?
The 2026 Merchant Insider Report breaks down where merchant expectations are rising, and where software providers are falling short. Download it today to discover what you can do to strengthen retention in this payments-driven market.