Remember when everyone said, “There’s an app for that”? For a while, it felt like retail apps were losing their luster to the good old mobile website. But according to new data, the merchant-owned app isn’t just surviving; it is becoming the most critical piece of the retail puzzle—just as the traditional shopping journey is falling apart.
A recent PYMNTS Intelligence report, commissioned by Visa Acceptance Solutions, has thrown a spotlight on a fascinating shift. Despite the rise of social commerce and search engines, the apps we download directly from brands are quietly winning the checkout battle.
The AI Elephant in the Room
While speed and convenience are the current drivers, the future of these apps is about something far bigger: Artificial Intelligence.
As we head toward 2027, the way we shop is changing. AI agents—bots that can research, compare, and buy on your behalf—are becoming more common. In fact, 61% of merchants surveyed agreed that AI-generated results will influence purchases more than traditional search results next year.
Right now, how do AI agents “see” products? They scrape data from websites. But that process is clunky. Websites are chaotic. Apps, however, are structured. They are clean, organized, and contain all the necessary data (price, stock, shipping times) in a format that is much easier for a machine to read.
This is where the app becomes an “AI Control Layer.” If an AI agent is going to buy a new pair of sneakers for you, it needs to know if they are in stock, if the coupon code applies, and if your saved credit card gets the best rewards. Merchant apps provide that structured environment.
Checkout Champions
Here is the bottom line: Apps are simply better at selling than websites. The study measured 14 different checkout capabilities, and merchant-owned apps outperformed websites on 11 of them.
It makes sense when you look at the numbers. The convenience gap is staggering:
Biometrics: 42% of merchants offer fingerprint or facial recognition in their apps versus only 26% on websites.
QR Codes: Nearly 60% of apps use QR code checkout, compared to just half of websites.
Digital Wallets: 63% of apps let you autofill with PayPal or Apple Pay, versus 56% on the web.
This leads to higher sales. Fifty-seven percent of merchants reported that their app sales increased over the last year, narrowly beating out websites (55%) and physical stores (54%). Why? Because an app is a friction-free environment. You are already logged in, your credit card is saved, and your loyalty points are applied. You are moving from “want” to “buy” with a single tap.
However, the report also reveals a clear “Digital Divide.” While large retailers are investing heavily in these features, Small to Medium-sized Businesses (SMBs) are struggling to keep up, trailing by over 10 percentage points in biometrics and stored credential offerings.
The Attribution Problem
Here is the catch: while 58% of merchants expect AI agents to select payment methods based on fees and rewards, and 56% expect them to complete transactions autonomously, most retailers aren’t ready for them.
Currently, the visibility is murky. Only 23% of merchants can clearly identify that an AI agent has visited their site and made a purchase. A further 21% can see the traffic but can’t tell if it led to a sale. The remaining 56% are essentially in the dark.
The Reality Check
Before you rush off to build an app, a word of caution: The data does not say that every small retailer needs an app. Development costs, “download fatigue” from customers, and low engagement remain significant hurdles.
However, the message is clear. If you want to control the experience and protect your margins, your own environment—the app—is the only safe place to be. It allows you to test new payment methods, manage loyalty, and eventually, interface with the AI agents that will soon be doing the shopping for millions of consumers.
The checkout isn’t just a button on a page anymore; it is a structural challenge for the age of AI.