NMI Survey: What Consumers Want from Payments in 2025

Self-Checkout and Unattended Payments Are a Big Opportunity

Many large retailers have been experimenting with limiting or even eliminating self checkout, but our research shows that might be a big mistake. Overall, 55% of respondents said they’d like to see more self-checkout options in 2025, thanks to the elevated convenience they offer.

Broken down by age, Gen X, Millennials and Gen Z all expressed a desire to see more self-service/self-checkout options in the year ahead:

• 54% of Gen X consumers (42-57 years old)
• 67% of Millennials (26-41 years old)
• 67% of Gen Z (18-25 years old*)

However, it’s important to note that 44% of all respondents also singled out unattended payments, like self-checkouts and kiosks, as the most frustrating payments experience they encounter.

*Full age range of Gen Z: 10-25 years old.

The Takeaway

The majority of consumers want more self-service opportunities, but also expect a better user experience. When self-serve payments work smoothly, they represent extreme convenience — one of the most important factors driving consumer payment choice. But, when they don’t work, especially in fully unattended environments with no help readily available on-site, the customer is left effectively powerless, creating an extremely negative experience.

For the best results, unattended payment providers need to focus on friendlier, easier-to-navigate and more reliable user interfaces so that snags are less frequent. Merchants employing these systems need to make sure customers can get assistance from a human, without waiting, should they need or want it.

Payments Security Is a Top Concern for Consumers in 2025

While consumers are enthusiastic about using digital payments, they’re also increasingly aware of the risks they may be exposed to, like payments fraud, data breaches and misuse of personal data. Our survey showed that this heightened awareness has led to security topping the list of consumer concerns for 2025.

• 71% of respondents said they’d like to see an increase in security and fraud protection from payment technology in 2025
• 64% of respondents said their greatest concern when it comes to payments is the risk of their data being compromised in a breach

The Takeaway

Consumers increasingly choose digital payments for their convenience. But providers and merchants need to offer more protections and find ways to communicate safety measures effectively so consumers feel safe. As payments become more digital and  move towards potentially higher stakes data collection like biometrics, getting consumers to buy into new payment technologies will increasingly require a very clear security advantage alongside the big drivers like speed and convenience.

Consumers Are Looking for Flexible Ways To Pay

With so many different ways to pay, consumers are on the lookout for the fastest, most convenient solutions available, both in-store and online. While credit is still king, consumers expressed a clear hunger for a wider set of flexible payments options.

• 81% of all respondents said it’s somewhat or very important to them that retailers and businesses have flexible payment options including digital wallets; mobile payment/online ordering; peer-to-peer (P2P) payments like Venmo; and buy now, pay later (BNPL)
• 43% said it was very important to have flexible payment options, including 53% of Millennials and 49% of Gen Z

Digital wallets like Apple Pay, Google Pay and Samsung Pay are leading the way as alternative payment methods, making particularly strong inroads with the youngest consumers.

• 44% of all respondents think they’ll use digital wallets more frequently in 2025
• 60% of Gen Z anticipate using a digital wallet more frequently in 2025
• 37% of Gen Z and 31% of Millennial respondents said they anticipate making most of their transactions in 2025 via digital wallets
• 18% of Gen Z respondents anticipate using a digital wallet for all of their transactions in 2025

Digital wallets also make it possible to embed payments in a variety of devices beyond just phones and tablets. Over a third (36%) of Gen Z respondents and 30% of Millennials said they already use payment methods built into alternative devices, including wearables like smartwatches and other smart gadgets.

The Takeaway

Millennials and Gen Z are the trendsetters that the payments space needs to be watching.Their expectation for alternative payment methods, like digital wallets, is clear. 

While digital wallet adoption in the United States is still in its infancy compared to other regions like Asia-Pacific — where digital wallets and super apps dominate — young consumers are already embracing new ways to pay. As their influence grows, 2025 presents a prime opportunity for providers and merchants to prioritize expanding their flexible payment offerings to keep pace with evolving expectations.

Consumers Believe AI Has a Place in Payments — With Conditions

AI is one of the hottest topics across all industries, and it’s already transforming the payments space in significant ways. But, while attitudes towards AI on the consumer side are slowly thawing, there are still hurdles to overcome in how customers perceive AI and how it’s integrated into their payments experience.

For example, only 26% of all respondents said they’d support AI-driven payment experiences if it meant the checkout process was faster and more seamless. The number was only slightly higher among Gen Z (33%) despite being the most tech-forward consumers. Unsurprisingly, the willingness to adopt AI into payments drops as consumers get older, with 42% of baby boomers having no interest in AI-driven payment experiences at all.

Concerns around transparency and overuse of AI partly explain the slightly chilly reception. Just 29% of Millennial and Gen Z respondents said transparency around how and where AI is used would be a precondition of supporting AI-driven payments. And, surprisingly, 51% of Gen Z respondents said over-dependence on AI was their single biggest concern regarding payments in 2025.

The Takeaway

AI is proliferating on the back end of the payments industry, and many providers are already working it into customer-facing products, as well. However, consumers still don’t totally trust or understand AI, and pushing it on them too quickly or too loudly could hurt the adoption of new payment technologies. At the same time, hiding its involvement is a recipe for disaster, as consumers — particularly Gen Z — clearly expect high transparency. 

Providers will need to walk a fine line between leveraging the benefits AI offers in front-end products and easing consumers into a new world of AI-driven payments. Education and clear communication will be keys to maintaining trust while delivering a better, AI-powered customer experience.

Loyalty Programs Continue To Be A Key Value Driver, Especially for Young Shoppers

Rewards programs continue to be one of the most important value propositions merchants can offer consumers. For instance, 87% of all respondents and 90% of Gen Z said they’re more likely to shop with a retailer that offers instant rewards. That includes not only accruable points but also personalized discounts and benefits.

The Takeaway

Consumers expect rewards, and failing to offer them is missing out on a huge opportunity to improve the customer experience and increase return business. That’s especially important with younger consumers like Gen Z, who have notoriously low brand loyalty and are far more likely to shop around for deals than older demographics. 

Personalization is a newer but extremely important aspect of loyalty programs, and AI is now making hyper-personalization easier and more cost-effective. 2025 is an ideal year for providers to begin looking for new ways to help merchants integrate frictionless, highly personalized loyalty programs in order to minimize customer turnover.

NMI offers a complete, flexible payments platform designed to make it faster and easier to meet the evolving needs of your merchants in 2025 and beyond. To find out more, reach out to a member of our team today.