90% of merchants would offer POS finance if backed by a regulated bank
60% of hospitality businesses say speed is their key reason for investing in smarter point-of-sale (POS) systems ahead of the 2025 holiday shopping season, according to new research from Lloyds Merchant Services. As festive trading ramps up, businesses are upgrading their checkout technology to handle higher volumes, reduce wait times and deliver a more seamless payment experience across busy venues. From restaurants to retail counters, faster and more reliable POS systems are now seen as critical to maintaining customer satisfaction and securing sales during peak periods.
Consumer payment expectations are also evolving. Lloyds research shows that shoppers increasingly value speed, trust and flexibility at checkout, with 61% of BNPL users more likely to shop where BNPL options are available. Meanwhile, 88% of merchants not currently offering BNPL and 90% of merchants not currently offering POS finance say they would do so if backed by a regulated bank, highlighting growing appetite for responsible, bank-led solutions that complement the in-store experience.
Melinda Roylett, managing director of Merchant Services at Lloyds Banking Group, said: “This year’s holiday season will be defined not just by what people buy, but how they choose to pay. Whether dining out, shopping on the high street or booking festive experiences, customers expect payment to be fast, seamless and trustworthy. Investment in modern POS technology and responsible finance is helping businesses deliver faster, more reliable checkout experiences that build customer trust.”
Lloyds research shows that hospitality businesses are focused on improving payment speed and reliability, with 77% citing contactless as their most requested payment method and 42% highlighting slow transaction processing as a key operational challenge. This follows wider Lloyds analysis showing that many merchants anticipate stronger trading during the festive season. Lloyds research also highlights that many retailers are looking beyond basic card acceptance as they modernise their payment infrastructure. With shoppers expecting faster and more flexible transactions, Lloyds notes growing adoption of integrated POS and finance solutions designed to improve checkout flow and support higher-value purchases during peak trading.
As retailers and hospitality businesses enter the ‘Golden Quarter’, Lloyds Merchant Services is encouraging businesses to prepare for higher transaction volumes and evolving customer expectations. Three key areas of focus are to:
- Optimise the checkout experience: Ensure POS systems can handle high footfall and multiple payment types, including mobile wallets and instalment options, to avoid friction at the point of sale.
- Improve cashflow visibility: Faster settlements and integrated reporting tools can help businesses track performance in real time and reinvest quickly during peak demand.
- Strengthen fraud and chargeback protections: Fraud losses in the UK exceeded £1.17bn in 2024, with over 3.3 million confirmed cases, according to UK Finance’s 2025 Annual Fraud Report. As fraud activity continues to evolve, layering POS security with responsible finance options can help protect both revenue and reputation.
Roylett added: “For many retailers and hospitality businesses, the holiday period brings opportunity and pressure in equal measure. The difference between winning and losing a customer can be how seamless the experience is or whether instalment options are available when budgets are stretched. By investing early in proven POS systems, faster settlement and responsible lending at checkout, businesses can enter the peak season with greater confidence and control.”
These insights are drawn from two recent Lloyds Merchant Services reports – The Flex Economy, which explores how embedded finance such as BNPL and POS credit is influencing shopper behaviour, and From Till to Table, which examines how hospitality businesses are evolving their payment infrastructure in response to customer demand. Further Lloyds Merchant Services commentary on early festive retail activity shows retailers shifting into promotional cycles earlier in the year, reflecting growing competition for consumer attention.
As transaction volumes rise during the Golden Quarter, Lloyds Merchant Services is encouraging retailers and hospitality businesses to stress-test their payment systems, assess customer preferences and ensure they have responsible finance and fraud protection measures in place. With more than 34,000 UK businesses already relying on its platforms, Lloyds Merchant Services supports businesses with end-to-end payment acceptance, POS integration, flexible finance partnerships and next-day settlement options, helping them prepare for peak trading with confidence.