Payments Are Setting the Standard for Consumer Trust — And Collectors Should Take Note

Experian’s first merchant-focused identity and fraud report uncovers shifting consumer expectations around security, payments, and online engagement — insights that directly influence how collectors connect, verify, and recover moving into 2026.

Consumers are demanding stronger security, simpler experiences, and more transparent data practices — and a new Experian report on identity and fraud shows that many merchants are falling behind.

Experian’s first merchant-focused Identity and Fraud Insights report (PDF) highlights growing trust gaps across industries and points to the areas where consumers feel businesses aren’t meeting their expectations.

The report features findings drawn from “the experiences of hundreds of businesses and thousands of consumers.”

And while this report focuses on merchants and retailers, many of the trends Experian highlighted carry real implications for those working in accounts receivable management as well.

Consumers Trust Payment Providers More Than Any Other Digital Service

Experian’s research shows that payment providers remain far ahead of all other industries in usage and trust, marking the fourth consecutive year that payments have topped consumer confidence rankings.

According to Experian, 83% of consumers report using P2P payment apps, and they ranked these tools as the top contributors to a better online experience. In a rare sign of overperformance, Experian found that payments were “the only category to receive more trust than consumers felt they were owed.”

The report said that this reliability is reshaping how consumers approach new merchants.

“Consumers are more likely to transact with unfamiliar merchants if they use a well-known payment provider,” the report said, which is a trend Experian said has been consistent since 2022.

Retailers and Marketplaces Face a Widening Trust Gap

Although retail apps are widely used and highly valued — 77% of consumers say they’ve used one — they are not meeting expectations for protection and peace of mind.

“Consumers expect more from these platforms — especially when it comes to protecting their data and preventing fraud,” the report said. “They aren’t confident those expectations are being met.”

While 32% of consumers reported using e-commerce marketplaces in the past six months, only 15% engaged with branded retailer sites or apps. Marketplaces have set a new bar for speed, simplicity, and confidence, Experian reported.

“In a landscape where the same product is available across multiple platforms, merchants will have to invest more aggressively in the user experience,” the report said — and that’s without asking consumers for more personal data, which they are reluctant to provide.

Digital Natives: Confident Online, But Unaware of the Risks

Despite their digital fluency, 18–24-year-olds remain the most vulnerable online.

“They’re the least aware of online scams and the most likely to say they have no concerns about fraud,” Experian said.

This group is also more likely to prefer guest checkouts and less likely to trust traditional authentication methods. For merchants, the report frames this as a dual challenge: This generation represents both a risk and an opportunity, particularly for businesses able to protect and earn the trust of future consumers without asking them for more personal information.

Consumers Want Security They Can — And Can’t — See

Across industries, security and privacy remain consumers’ top priorities.

“Security and privacy outrank personalization and convenience for online experiences,” the report said, with 85% of consumers prioritizing security and 84% prioritizing privacy.

Yet while consumers overwhelmingly view biometrics as the most secure authentication method, merchants have been slow to adopt them.

“Physical and behavioral biometrics represent a missed opportunity to build trust without adding more friction,” the report said.

At the same time, consumers value security they don’t have to think about. Behavioral analytics and invisible risk assessment tools “deliver exactly what they want: invisible, intelligent security.”

Guest Checkout Isn’t a Problem — It’s a Test of Merchant Technology

Even as businesses push for account creation, guest checkout continues to dominate consumer preference. Experian noted: “Consumers consistently choose speed, simplicity, and privacy,” even when they already have an account with the retailer.

But this preference introduces risks. This raises a critical question for merchants, according to Experian: “How do you balance transaction conversion against fraud risks when you know less about the buyer?”

The report’s answer: Invest in advanced, passive verification.

“Tools like accelerated checkout, passive identity verification, and behavioral analytics now allow merchants to recognize and assess identity risks without requiring login credentials or even PII [Personally Identifiable Information]” it said.

The Trust Gap Is About Expectations, Not Just Performance

Consumer expectations are high and unwavering: 83% expect businesses to address their security and privacy concerns, a sentiment Experian said, “has remained consistently high over the past four years.”

But actual trust greatly varies.

The report notes that payment providers and credit bureaus earned the highest trust scores at 28%. In comparison, government agencies showed the biggest disconnect: “Consumers rated government as the most important for protection but only 18% trust it to provide that protection,” creating a 50-point trust gap, the largest in the study.

“The opportunity is to close the gap between what consumers expect and what they experience,” the report said. “Businesses that lead with transparency, control, and consistency will be best positioned to earn and keep consumer trust.”

Looking Ahead: What This Means for the ARM Industry

Even though Experian’s findings center on merchants, much of what they uncovered applies directly to the ARM industry. As consumers become more cautious online and more selective about who they trust, ARM professionals will need to adopt many of the same approaches that merchants are now being pushed toward.

Consumers increasingly expect companies to recognize them without asking for extra personal details — and they reward organizations that offer simple, secure, easy-to-use interactions. For our industry, this means modernizing payment options, making authentication easier without sacrificing security, and being clear about why certain information is requested.

Younger consumers are going to reshape repayment behavior. Experian found they are the least aware of online scams but the most sensitive about privacy, and they strongly prefer quick, guest-like experiences. They also put more trust in biometrics and behavioral signals than in passwords or PINs. Collectors who understand these expectations — and build experiences that feel familiar to this generation — will be better positioned to keep consumers engaged, reduce drop-off, and increase resolution rates.

As merchants invest in stronger, behind-the-scenes fraud controls, collectors may see fewer fraudulent accounts placed downstream but more identity-related disputes and questions. Aligning with these new security expectations won’t just be helpful — it will be necessary. At the end of the day, the path to stronger recovery efforts isn’t far off from what’s reshaping commerce: make it secure, make it simple, and make it trustworthy.