• Melinda Roylett, Managing Director at Lloyds Merchant Services


• 01.08.2025 11:15 am
#PaymentsData #FastPayments

Retailers are facing a moment of reinvention. Even as inflation lingers, consumer spending is recovering - and merchants are seeking ways to convert this rebound into sustainable growth.

Data from Lloyds Merchant Services, which processes payments for over 35,000 UK merchants, shows consumers are returning to discretionary categories like clothing, homeware and entertainment. But competition for share of spend is intensifying. Smart retailers are looking beyond transaction processing and focusing on how payments can generate rich insights, personalise experiences, and drive new business efficiencies.

At Lloyds, we used aggregated and anonymised data from 27 million UK cardholders to help understand shifting spending preferences and behaviour - from generational spending patterns to channel usage. Our data from Black Friday 2023 for example, showed that Millennials led activity, with clothing transactions up 35% in value and 17% in average transaction size.

When payment systems capture and connect this insight across loyalty, inventory, and promotions, retailers can act faster - adjusting offers, stock levels, and campaigns in real time. This is where our integrated platform with Clover POS devices can make a difference. From app-based loyalty and stock management to remote updates, today’s retail infrastructure must be dynamic, secure, and customer-centric.

Contactless is now the default. According to UK Finance, 38% of all payments in 2023 were contactless - and mobile wallet adoption continues to climb. 

Regulatory readiness is also key. BNPL, for example, is surging - with over 50% of UK adults having used or planning to use it. As scrutiny grows, retailers need partners who can embed compliance into flexible finance journeys. Our FlexPay solution supports this shift - combining real-time affordability checks with seamless POS finance integration, helping retailers boost approval rates and protect customers.

Cyber and compliance risks are also top of mind. Our solutions offer PCI DSS encryption, two-factor authentication, and SCA protocols - giving retailers confidence that their data and their customers’ data is safe.

Meanwhile, loyalty expectations are evolving. Shoppers now seek instant rewards, personalised perks, and integration with apps or mobile wallets. For merchants, this requires payments and loyalty to function as one system - not separate silos. The payoff is deeper engagement and higher retention, especially when payments data feeds CRM and marketing automation in a closed loop.

But retailers also need human support. When issues arise, downtime is costly. That’s why our UK-based customer service teams answer calls in under 32 seconds on average, ensuring help is always at hand.

As AI, mobile-first behaviours, and embedded finance reshape the retail landscape, it’s time to reimagine the checkout not as the end of the journey, but the beginning of something smarter. Retailers who embed intelligence, flexibility, and trust at the point of sale will be the ones who win long term