Payment Pulse – Ep. 20

Payment Pulse: The Power of Social Proof: Learn how influencer endorsements, online reviews, and peer behavior shape our buying habits.

Status Spending and Luxury Psychology: Understand why consumers use high-end payment methods to signal prestige and how brands capitalize on the “Keeping up with the Joneses” mentality.

FOMO and Impulse Purchases: Explore the role of limited-time offers and BNPL services in reducing purchase friction and triggering rapid spending.

Digital Trends on Social Media: See how platforms like Instagram, TikTok, and YouTube are revolutionizing product discovery and checkout experiences.

Cultural Influences on Spending: Discover how global payment preferences vary and why adapting to local norms is key for businesses expanding into new markets.

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Episode Transcript

Michelle:  Hey everyone, and welcome back to the show. We’re diving into one of the most strategic shifts happening in SaaS right now: the evolution of payment trends and what they mean for growth in 2026.

Shannon: That’s right, and that’s because payments aren’t just a backend function anymore. They’re becoming one of the biggest competitive differentiators in SaaS, and if you understand where the payments landscape is going in 2026, you can outpace your competition in ways that go far beyond transactions.

Michelle: Now, this isn’t just moving money from A to B. It’s about unlocking revenue, building loyalty, and giving SaaS platforms a competitive edge.

Shannon: Absolutely, and that’s why today we’re giving you a sneak peek of our upcoming white paper titled 2026 Payments Trends: Strategic Opportunities for Vertical SaaS Platforms. So consider this your VIP preview. 

So Michelle, let’s start with how payments experiences are becoming a competitive differentiator.Why is the customer experience suddenly becoming such a big deal for SaaS platforms?

Michelle: Well, merchants are just done with clunky payment processes. They just want everything to work. They want tap to pay on the go, fast online booking, automated billing that doesn’t need spreadsheets- basically, a frictionless experience.

Shannon: Right, and these aren’t just nice to haves anymore. Merchants are really choosing platforms based on how easy it is to move money through their operations.

Michelle: Exactly. There’s also the trend of invisible payments where transactions happen behind the scenes. You barely notice the payment, but the experience is smooth. 

So an example of this is like Uber or Lyft, where they already have your credit card information in their app. So you hop in and out of your ride without having to worry about paying your driver at the end. Another example are subscriptions that auto-renew, so your Netflix, Spotify, or gym membership.

Shannon: Mm-hmm. Yeah, you’re right. And the result is happier customers, fewer abandoned checkouts, and lower churn. So if your SaaS platform can make payments effortless, you can really win big in 2026.

Michelle: Yeah, merchants are essentially saying, you know, “The speed and ease of getting paid is just as important as a software itself,” and that’s just become the new reality.

Shannon: Yeah, it makes sense. The payment experience is basically part of the product now and not just an add-on.

Michelle: Alright! Next trend, AI and automation. This one gets tossed around a lot, but what does that actually mean for payments? 

Shannon: Well, several things really. So real-time fraud detection is obviously huge, you know, such as reducing false declines without slowing things down. And then predictive analytics are important too because they can forecast cash flow, flag at-risk customers and even recommend next steps for managing payments.

Michelle: And don’t forget automation. AI can handle manual back-office tasks that used to take hours, freeing teams to focus on growth instead of chasing invoices.

Shannon: Yeah, and then there’s also something that’s really interesting and it’s called “agentic commerce”, and that’s where AI agents can actually discover and complete purchases autonomously. It sounds futuristic, but it’s coming soon.

Michelle: I mean, it’s crazy to think about, but honestly, I look forward to the day that I can boss around a robot to make purchases on my behalf or maybe even plan my perfect vacation. So basically, payments are no longer a transaction. They’re really becoming a layer of intelligence that drives better business decisions.

Shannon: Yeah, and SaaS platforms that can harness AI and payments can offer higher value with less operational complexity.

Michelle: It’s almost as if payments have become a superpower.

Shannon: Yeah, I like that. Payments is a superpower. Has a good ring to it! 

So Michelle, let’s move on to the next trend. Why is faster funding such a hot topic for 2026?

Michelle: I would say it’s because even waiting a few days for money feels really old school now. Small businesses, gig workers, and service providers all rely on fast access to cash to keep their operations running.

Shannon: Yeah, and that’s where real time payment networks like Fed Now and RTP come in. They enable immediate or near instant payouts, refunds, and also vendor payments.

Michelle: That’s right. I mean, faster funding isn’t just a convenience, it’s really a competitive differentiator, and if a platform delays payouts, merchants will notice these things and they might even leave because of it.

Shannon: Yeah, and when they don’t have to wait, satisfaction and loyalty also go way up. So it directly impacts how merchants feel about the provider’s platform.

Michelle: It is really crazy how something as simple as speeding up the money flow can really change a customer’s entire perception of your product.

Shannon: Yeah, it really is. Faster funding is a subtle, but a truly powerful way that you can build trust with your customers.

Michelle: Now, let’s take a step back. Why do these trends specifically matter for vertical SaaS providers?

Shannon: Well to start with, payments are no longer just a utility. They’re now a driver of things like retention, revenue, and insights, and better payment experiences mean merchants will stick around longer. Then you have things like embedded financial services, which can open up new revenue streams. And then AI powered insights can give the software providers actionable data into their platform that they can leverage in multiple ways.

Michelle: So when everything is connected (software, payments, data) merchants get a way smoother ecosystem. And that’s where the magic happens!

Shannon: Yeah, exactly, exactly. You know, platforms that adopt these trends early, they’re not just keeping up, they’re actually gonna be setting the bar for their competitors.

Michelle: Yeah. And it’s not just about surviving 2026. It really is about thriving in the next era of SaaS.

Shannon:  All right, Michelle. So here’s my final question for the day. If a SaaS provider is listening, what should they be doing right now to prepare for these trends?

Michelle: Yeah, so first I would say think strategically about payments. Don’t just treat it as another checkbox, and I would also focus on improving merchant experiences.

Shannon: That’s right. And then they should be investing in things like automation and AI for smarter operations. Explore real-time funding options. It’s going to be table stakes sooner rather than later.

Michelle: Also, I would say don’t go at it alone. Partner with platforms and providers that can accelerate these changes. You don’t have to build everything yourself.

Shannon: Exactly. And the platforms that lean in now will be the ones that grow faster, differentiate more, and deliver real value to their customers.

Michelle: Yeah. So the future is smart, fast, and embedded.

Shannon:  And for the SaaS providers who innovate now, it’s a huge opportunity to stay ahead of the curve.

Michelle:  All right, so that is your sneak peek into 2026 payments trends. Hopefully we captured your attention on why it’s important!

Shannon: And remember, the full white paper goes into more detail, so more trends, more insights, and more strategy.
Michelle: You can head on over to xplorpay.com, that’s X-P-L-O-R pay.com to read the full white paper or get the highlights off of our blog. Thanks for joining us today, and we’ll see you on the next episode of Payment Pulse.