The pace of change in the payments ecosystem has been extraordinary. Two primary forces have been driving the momentum — digital currencies and AI — and both have the power to radically disrupt the payments space for banks and retailers.
The rapid evolution of digital currencies and, more importantly, the underlying distributed ledger technology, potentially provides greater speed, efficiency, security and acceptance.
Today, digital currencies are creating alternate rails that could fundamentally transform the traditional payment ecosystem (and, in doing so, disintermediate many financial institutions).
With SWIFT’s planned introduction of a blockchain-based ledger, a fundamental shift in payment technologies is now underway. (SWIFT, “Swift to add blockchain-based ledger.” 29 September 2025.)
The other big disruptor is AI — agentic commerce in particular. Recent estimates suggest that around half of ChatGPT users in the US asked the tool to help them with their Christmas shopping this year. Now, chatbots capable of not only selecting products, but also now paying for them, are emerging and transforming the purchasing patterns of AI native consumers.
Big AI companies are at the forefront. But, as we noted in a recent report, many of the world’s largest retailers are rapidly developing their own agentic shoppers. Those left out of the action are increasingly worried they, too, will be bypassed by their customers. (AI in retail: Global lessons from strategy to storefront, KPMG International, 2025.)
Banks and retailers will need to move quickly to adapt to this new environment or face the real risk of obsolescence. And that is putting significant urgency behind efforts to rapidly modernise payment infrastructure, processes and operations across both sectors.
In this fast-paced, high-risk environment, banks and retailers cannot afford to work in isolation. Indeed, the only way to keep pace with the pace of change in technology, consumer preferences and competitive environment is through partnerships — not only between legacy banks and retailers, but also with technology providers, regulators, fintech start-ups and consumers.
Based on a global survey of 500 banking leaders and 500 retail executives, including chief financial officers, heads of customer experience and strategy executives, this report explains how the leading players are building partnerships to drive rapid progress, achieve innovation and meet customer expectations.
Supported by insights from KPMG’s global network of banking and retail professionals, the report provides payment decision-makers with the data and ideas they need to keep pace with the rapid changes now at play across the payment ecosystem.
We encourage you to learn more about the findings and to discuss your organisation’s unique opportunities with your local KPMG member firm, including how partnerships can help you thrive in a disrupted environment.
As customer expectations evolve and new payment options are rapidly introduced into markets around the world, chief financial officers, heads of customer experience and strategy leaders at banks and retailers are seeking to pick up the pace of their payment modernisation programmes.
Budgets are increasing. Core capabilities are being enhanced. Legacy systems are being replaced. And organisations are placing a sharper focus on the needs and expectations of their customers.
In this environment, the leading banks and retailers are those forming dynamic and value-driven ecosystems and partnerships that support their modernisation objectives while unlocking opportunities for future innovation and payment technology integration.
Yet this survey suggests that progress along the payment modernisation path has been uneven. Indeed, while some banks and retailers are boldly leading the way (or quickly following), many are quickly falling behind — opening themselves up to increased disruption and potential disintermediation.
This report is intended to help those responsible for payments, corporate strategy, transformation and operations at banks and retail organisations to assess the current competitive environment and benchmark their progress against their peers as they update and evolve their payment modernisation strategies.
In the context of this report leaders and beginners are defined as follows:
Based on a survey of 500 bank and 500 retail payment executives conducted by KPMG International between 8 September and 30 October 2025, this report highlights a number of key findings that illustrate the complexity and urgency of payment modernisation for banks and retailers, including:
This report provides a summary of our findings, supported by practical and actionable insights from KPMG’s global network of payment professionals and real-world case studies that illustrate the challenges and opportunities facing bank and retail executives as they seek to pick up the pace of their payment modernisation programmes.
The global payments landscape is rapidly changing as new technologies, payment methods, players and customer expectations radically transform the payments ecosystem. Payment modernisation has become an urgent priority for those banks and retailers hoping to remain relevant in the new payment environment.
From payment modernisation and accelerated digitalisation to ISO 20022 conversion and regulatory compliance, KPMG’s network of payments professionals takes a holistic approach to your payments challenges to deliver tailored, approaches and ideas ready for the future.
KPMG’s payments professionals leverage our global organisation’s extensive technology and change capabilities to support the delivery of industry leading payment solutions. They are embedded into the KPMG global organisation’s financial services and retail practices, allowing them to leverage industry best practices and new ideas from around the world.
KPMG’s global organisation of professionals have worked with some of the world’s leading banks and retailers to help deliver modernised payment solutions.
Contact our Banking & Payments team below to find out how we can help your organisation.
Partner, Head of AI & Velocity, Head of Banking & Capital Markets, Global Lead for Financial Services Cost Transformation
KPMG in Ireland
