Payments News Desk: July 2026 Edition
July Payments News Desk covers the latest in payment acceptance, contactless payments, AI fraud, and Federal Reserve payments data.
Introduction
Welcome to the latest edition of Payments News Desk, TRX Services' monthly series highlighting the trends, research, and developments shaping the payments industry. Each month, we review key stories that provide insight into how businesses and consumers are adapting to changes in the payments landscape.
This month’s edition explores how payment acceptance influences consumer shopping decisions, the continued adoption of contactless payments, the growing role of facial recognition in payments, the increasing use of AI in accounts receivable fraud, and the latest findings from the Federal Reserve on how consumers and businesses use noncash payments.
1. Payment Acceptance Plays a Role in Consumer Shopping Decisions
New PYMNTS Intelligence research highlights the connection between payment acceptance and where consumers choose to shop. According to their Digital Shopping Becomes an Everyday Event report, 66% of consumers globally say knowing their preferred payment method was accepted influenced their choice of retailer.
The impact varies by country, with the strongest influence reported in the United Arab Emirates, where 86% of consumers said preferred payment acceptance affected their retailer choice. In the United States, 65% of consumers reported that payment acceptance influenced their choice of merchant.
The findings demonstrate that payment acceptance is an important factor in the consumer shopping experience. For businesses, offering preferred payment methods can influence where customers decide to make purchases.
2. Contactless Payments Help Reduce Payment Friction
A recent PaymentsJournal article examines how contactless payments are becoming a consumer expectation, now accounting for approximately 60% of U.S. transactions. As consumers increasingly look for faster and more convenient ways to pay, contactless technology provides a way to complete purchases quickly and easily.
The article highlights how contactless payments help address friction in everyday transactions by improving experiences in situations where speed and convenience are especially important. By allowing customers to tap a card or device rather than use traditional payment methods, contactless payments can help create smoother checkout experiences.
Contactless payments are increasingly being utilized by industries such as public transportation systems and event venues, with some larger event venues transforming into completely cashless locations.
As contactless adoption continues, the technology remains an important part of the evolving payments environment, helping businesses meet changing consumer expectations around transaction speed and convenience.
3. Digital Identity and Payments Move Toward Facial Authentication
A Payments Dive article explores the growing connection between digital identity and payments, including the use of facial recognition technology as a payment authentication method.
The article highlights how companies are exploring ways to use biometric technology, such as facial recognition, to verify identity during payment transactions. By linking payment authorization with biometric identification, these solutions aim to create a more seamless way for consumers to complete purchases.
As digital identity solutions continue to develop, facial authentication represents one example of how payment experiences are evolving through new technologies designed to connect identity verification and transactions.
4. AI-Driven Fraud Targets Accounts Receivable Processes
A recent PaymentsJournal article highlights how artificial intelligence is being used to increase the sophistication of fraud targeting accounts receivable (AR) processes.
The article explains that fraudsters are using AI to support schemes involving fraudulent invoices, impersonation, and other payment-related deceptions. As businesses increasingly rely on digital communication and payment workflows, AI-generated fraud attempts are becoming more difficult to identify.
The growth of AI-driven fraud demonstrates how evolving technology is affecting both businesses and fraud prevention efforts. Organizations must remain aware of how emerging tools are being used to target payment processes and financial operations.
5. Federal Reserve Study Highlights Continued Growth in Noncash Payments
The Federal Reserve recently released initial findings from its 2025 Federal Reserve Payments Study, providing insight into how consumers and businesses used noncash payment methods in 2024.
The study found that the total number of noncash payments increased to 236.6 billion in 2024, more than tripling since 2000. Cards continued to be the most frequently used payment method, accounting for more than three-quarters of payments by number. Debit cards represented the majority of card payments, although credit card payments grew faster than debit card payments for the first time in nearly a decade.
The report also found that ACH payments continued to represent the majority of noncash payments by value, reaching nearly three-quarters of noncash payment value in 2024. At the same time, check payments and ATM cash withdrawals continued to decline in both number and value.
The findings provide additional insight into the ongoing shift toward electronic payments among consumers and businesses.
Conclusion
The July edition of Payments News Desk highlights several key themes shaping the payments industry: consumer expectations around payment choice, continued adoption of faster payment experiences, emerging payment technologies, evolving fraud challenges, and the ongoing transition toward electronic payments.
The latest Federal Reserve Payments Study reinforces the continued growth of digital payment methods, while the other stories demonstrate how businesses must navigate changing customer preferences and new technology-driven challenges.
As the payments landscape continues to evolve, staying informed about industry trends is essential for businesses looking to deliver seamless payment experiences and adapt to new opportunities.
Stay tuned for next month’s edition of Payments News Desk, where we’ll continue covering the latest developments shaping the future of payments.
