Software providers have less room than ever to assume merchants will stay put.
For the second year in a row, more than 60% of merchants say they have an appetite for switching platforms. In 2025, that figure stood at 62%, up from 55% in 2023, according to the 2026 Merchant Insider Report , which surveyed over 1,500 businesses across Australia, the UK and the US.
That does not mean merchants are actively looking for reasons to leave. But it does mean software providers need to understand what causes businesses to reconsider their current platform — and what gives them a reason to stay.
One of the strongest loyalty signals is payments. The report found that satisfaction with payment capabilities is the #1 reason businesses are unlikely to switch software providers.
For platforms, the message is clear: payments are not just part of the product experience. They are one of the clearest indicators of whether merchants feel supported enough to stay or frustrated enough to look elsewhere.
Where platforms lose: when “good enough” stops being enough
Switching triggers point to stagnation, friction and poor fit more than any single product gap.
Among businesses likely to switch, the report found:
- 32% cite newer, more innovative software options
- 28% say they spend too much time managing their current solution
- 28% want a provider better suited to their industry
- 27% say integrations no longer meet requirements
- 25% say their contract is ending
The report also found that 25% of likely switchers mention bad customer experiences using payment capabilities.
Taken together, these findings show how everyday operational frustration can become a switching trigger. When merchants spend too much time managing software, integrations no longer support the business and payment experiences frustrate customers, the issue feels bigger than payments. It becomes a question of whether the platform still fits the way the business runs.
That is where platforms begin to lose ground. Not always because one feature is missing, but because the overall experience starts to feel harder than it should.
Where platforms win: when payments strengthen loyalty
One of the strongest findings in the report is also the simplest: payment satisfaction keeps merchants loyal.
When the payment experience is reliable, easy to manage and well-integrated, it reinforces the value of the platform around it. Payments stop feeling like a separate operational layer and start supporting the way merchants already work.
The platforms winning merchants are the ones making payment capabilities feel current, useful and native to everyday workflows. That does not require chasing every headline-grabbing feature. It requires practical capabilities that help merchants accept the payment types they need, connect reliably to other systems, move money efficiently and keep pace with customer expectations.
Because the same payment experience that keeps a merchant from switching today can become a reason to reconsider tomorrow if it does not evolve.
Flexibility is becoming part of the retention equation
Another pattern emerges across the switching triggers: merchants are looking for platforms that adapt to their business, not the other way around.
That is where flexibility matters. Some merchants may need simple payment capabilities. Others may need more complex workflows, stronger integration support or more ways to manage how money moves through the business. Their needs can also shift as they grow.
For software providers, the right payments relationship can make that flexibility easier to deliver. When payment capabilities can expand alongside merchant needs, platforms have more room to retain customers through different stages of growth.
Rigid payment experiences can turn into bottlenecks. Flexible ones can help make staying feel easier than switching.
Regional triggers show different routes to the same risk
The report also revealed meaningful regional differences in what businesses prioritize when evaluating platforms.
In Australia, businesses are especially focused on innovation, time spent managing solutions and integration improvements. In the UK, industry fit, innovation and time spent managing the solution rise to the top. In the US, innovation, integration improvements and bad customer payment experiences stand out.
The priorities vary, but the broader message is consistent. Merchants are measuring platforms by how well they fit the realities of the business. Loyalty is shaped by fit, trust and usefulness, not familiarity alone.
What switching triggers should tell software providers
Switching triggers are not just warning signs. They are product roadmap clues.
If merchants are spending too much time managing their current solution, the opportunity may be to reduce manual work from daily operations. If integrations no longer meet requirements, the opportunity may be to improve reliability and interoperability. If innovation is driving switching consideration, the opportunity may be to make product improvements more visible and continuous.
And if customer payment experiences are disappointing, the opportunity is clear: make the payment journey easier, faster and more trustworthy inside the platform experience.
These are not just product improvements. They are retention moves.
The loyalty opportunity
Merchants are more willing to switch than they were a few years ago. But they are not unreachable. The same report that shows rising willingness to switch also shows the strongest reason they stay: satisfaction with payments.
That is the opportunity. Platforms that make payments feel reliable, flexible and valuable give merchants a clear reason to stay. Platforms that let payments become rigid, disconnected or outdated give them a reason to look elsewhere.
The switching signals are getting harder to ignore. For software providers, the path forward is not to assume merchants will stay put. It is to make staying feel like the smarter choice.
Get all the switch signals in the full report
The 2026 Merchant Insider Report breaks down the biggest switching triggers, shifting merchant expectations and the payment experiences driving long-term loyalty.
