Pollinate Research

Jul 7, 2026

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5 min read

Connected Commerce: The Next Evolution of Payments

For decades, the payments industry has competed to make transactions faster, cheaper and more secure; think real-time payments, least cost routing, and tokenization.While that mission remains fundamental to industry participants’ interests, our payment rails have matured and digital adoption has accelerated, so these capabilities are increasingly becoming table stakes rather than a source of competitive advantage.The next generation of industry leaders will not be defined solely by how efficiently they move money. They will be defined by how effectively they connect people, merchants, financial institutions and digital experiences into unified commerce ecosystems.

‍Connected Commerce represents that evolution.

Recent research by Global Payments reinforces the direction of travel. Digital wallets already account for more than half of global e-commerce transaction value and growing, while embedded financial services continue expanding beyond traditional banking channels into everyday customer experiences. Together, these trends point toward a future where payments become one component of a broader digital relationship rather than the end of a transaction.

Connected Commerce Is Bigger Than Payments

At its core, Connected Commerce brings together multiple participants into a single ecosystem.

• Consumers

• Merchants

• Financial Institutions

• Loyalty Programs

• Digital Wallets

• Marketplaces

• Venues

• Embedded Financial Services

Each participant already delivers value independently.

The opportunity lies in connecting them.

Historically these capabilities have existed as individual products, and Connected Commerce transforms them into an integrated operating model where Payment becomes the catalyst - not the destination.

The next phase of commerce innovation is not about enabling a payment but about enabling a relationship.

Connected commerce brings together payments, loyalty, financial services, and digital experiences to create deeper engagement and more value for consumers and businesses alike. Those that successfully connect these elements will be best positioned to shape the future of customer experience.

Bob Legters Chief Product Officer, Paysafe

From Optimizing Transactions to Optimizing Relationships

For years, the industry has competed to optimize the transaction.

The next decade will be won by organizations that optimize relationships.

Every payment creates an opportunity to strengthen customer engagement.

• Identity

• Rewards

• Merchant-funded offers

• Digital marketing

• Financial services

• Personalization

These are no longer isolated capabilities. They are now part of a continuous customer journey that benefits every participant within the ecosystem.

The Economics Change When Everyone Wins

Connected Commerce is compelling because it aligns incentives. They primary parties can all benefit:

• Consumers receive more relevant experiences, personalized rewards and greater convenience.

• Merchants gain stronger customer acquisition, increased retention and measurable return on marketing investment.

• Financial institutions deepen engagement, increase share of wallet and create additional revenue opportunities while strengthening primary banking relationships.

Instead of optimizing individual transactions, Connected Commerce creates long-term economic value across the ecosystem.

Industry Leaders Are Already Thinking This Way

The world’s leading financial institutions and payments processors increasingly discuss customer engagement, merchant ecosystems, and share of wallet alongside traditional banking products.

In JPMorgan Chase’s 2025 Annual Report, Marianne Lake describes the firm’s strategy around deepening customer relationships while expanding engagement across consumers and merchants - illustrating how ecosystem thinking is becoming central to long term growth.

Likewise, embedded finance and integrated commerce continue reshaping expectations for both consumers and businesses. The organizations that successfully connect payments, loyalty, engagement and financial services will be positioned to capture a larger share of future commerce.

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A Simple Framework

One way to think about Connected Commerce is through six interconnected capabilities:

Identity Payments Loyalty Offers Financial Services Merchant Engagement

The sum is Connected Commerce

Each capability already exists.

The competitive advantage comes from orchestrating them together.

That orchestration creates value that no single participant can deliver independently.

Beyond Retail

Although Connected Commerce is often discussed in retail, the opportunity extends much further.

• Sports and entertainment

• Hospitality

• Travel

• Healthcare

• Marketplaces

• Community banking

• Higher education

Wherever consumers, merchants and financial institutions interact, Connected Commerce can create stronger engagement, richer experiences and new economic value.

Looking Ahead

The first generation of digital payments digitised transactions.

The next generation will connect relationships.

The organisations that thrive over the next decade will not simply process payments more efficiently.

They will orchestrate ecosystems.

They will connect customers, merchants, financial institutions and partners in ways that create more value than any participant could create alone.

That is the promise—and the opportunity—of Connected Commerce.

References

• Worldpay, Global Payments Report (2024 and 2026)

• JPMorgan Chase, 2025 Annual Report – Marianne Lake Shareholder Letter

• Bob Legters, CPO at Paysafe

Author Donald Chapman Managing Director – Head of North America