Payments rarely change overnight. What happens instead is quieter, new habits form, expectations shift, and suddenly what was “innovative” a few years ago becomes the norm. Heading into 2026, that’s exactly where the payments industry finds itself.
Consumers expect payments to work everywhere, instantly, and without effort. Filling in card details or banking information feels old fashioned. Merchants expect flexibility, lower costs, and higher conversion. And payment providers are increasingly expected to connect the dots between mobile, banking, wallets, and emerging technologies while keeping user trust at the center.
So, what does 2026 really look like for payments?
Carrier Billing is growing up
For a long time, Carrier Billing was seen as a niche option; ideal for digital content, in-app purchases, or one-off micropayments. In 2026, that perception will reach its tipping point, and shift.
What’s driving the change? Simplicity. Being able to charge purchases directly to a mobile phone bill, or deduct them from prepaid balance, offers one of the lowest-friction checkout experiences available, especially on mobile. As mobile usage continues to grow, Carrier Billing is becoming a natural fit for subscriptions, digital services, and even selected physical goods. According to Allied Market Research, mega streaming providers such as Netflix, Amazon Prime and Spotify have integrated Carrier Billing into their payment mix.
At the same time, the ecosystem around carrier billing has matured and the pricing has become competitive. Stronger authentication, better fraud prevention, and tighter integration into apps and platforms have made it more suitable for recurring payments and higher-value transactions. In super-app environments especially, users increasingly don’t think about how they pay — they just expect it to work.
For merchants, the appeal is clear: higher conversion, fewer abandoned checkouts, and access to a broader customer base.
Open Banking and Account-to-Account payments are becoming the norm
If the last few years were about introducing Open Banking, 2026 is about using it at scale.
Account-to-account (A2A) payments, often branded as “Pay by Bank”, are now a familiar option for many consumers, especially across Europe. Instead of relying on card networks, this payment method moves money directly from one bank account to another, often in real time. The result is faster settlement for merchants, lower processing costs, and fewer intermediaries in the flow.
Consumers are far more comfortable with these flows than they were just a few years ago. Strong bank-level authentication and clearer consent journeys have helped build confidence, while the experience itself feels familiar and secure.
Another important development is Variable Recurring Payments (VRPs). These allow users to give controlled, flexible permission for recurring bank transfers, a modern alternative to traditional direct debits. For subscription businesses, this offers automation without sacrificing transparency.
The upcoming PSD3 and PSR regulations are set to accelerate the shift toward open finance. These rules will give Open Banking a boost and pave the way for a wider range of open finance solutions, from insurance and lending to savings accounts, making them more accessible and visible to consumers. The new regulatory framework is designed to encourage innovation while maintaining trust, giving both businesses and users more confidence in adopting these services.
Digital Wallets are becoming the default interface
According to an article in Finextra, Digital Wallets are no longer “just another payment method.” In many markets, they’re becoming the primary way users interact with payments.
Already, wallets like Apple Pay, Google Wallet, and regional alternatives are deeply embedded into everyday life. They store cards, bank credentials, tickets, loyalty schemes, and increasingly even identity attributes. What makes wallets so powerful is that they remove friction almost entirely. Authentication is biometric. Credentials are tokenized. Checkout often takes a single tap.
For merchants, wallet-first experiences consistently deliver higher conversion rates, especially on mobile.
User experience, the real battleground
Let’s face it, most payment methods are technically “good enough.” The real differentiator is how they feel.
Users don’t want to think about payments. This is why we’re seeing more embedded and invisible payments, where checkout happens inside an app, a device, or a moment rather than on a separate page.
Biometric authentication plays a big role here. Face ID or fingerprint confirmation feels effortless compared to passwords or codes, even though the underlying security is often stronger. At the same time, AI-driven personalization is starting to influence which payment options are shown and when.
Agentic Commerce: the future of the digital economy?
One of the most talked-about ideas going into 2026 is agentic commerce. Payments initiated by AI agents acting on behalf of users.
According to Mickensy we can expect these agents to not just recommend products, but also monitor usage, compare options, reorder supplies, renew subscriptions, and potentially influence our life decisions. The payment itself becomes a background process, triggered by rules and preferences the user has already approved.
This raises new questions around consent, trust, and authentication. Who is “authorizing” the payment? How do merchants know an agent is legitimate? The industry is actively working on standards to make agent-initiated payments auditable, secure, and reversible when needed. Building trust is going to be the key obstacle to overcome in order for widespread adoption to happen.
What does this mean for merchants?
For merchants, 2026 is about building the right payment mix a having the right payment provider. Those that will perform the best are the ones that meet customers where they already are, rather than forcing them into a single flow. Flexibility is now driving conversion.
Equally important is how payments are presented. A cluttered checkout with too many options can be overwhelming and off putting. The best setups are context aware. This means that they show the most relevant payment methods based on device, location, value, or past behavior, and making the experience feel fast and familiar. That means investing in the user experience, smart routing, and clear communication around trust and consent. Merchants who treat payments as part of the overall customer journey will be best positioned to grow in the year ahead.
What does this mean for payments in 2026?
The common thread across all these trends is simple: payments are becoming more embedded, more flexible, more invisible, and most importantly more strategic. In 2026, the best payment experience won’t be the loudest or the flashiest. It will be the one that users barely notice, because it just works.
For more information on payments reach out to our DIMOCO experts.
