July 2026
PYMNTS Data Books

Rewards at the Register: How Smart Basket Technology Puts Issuers Back at the Center of the Sale

Smart checkout technology could turn the store aisle into the next rewards battleground for issuers. PYMNTS Intelligence finds that 90% of issuers are very or extremely interested in embedded checkout promotions, but adoption will depend on whether providers can give them clear control over data, risk, liability and costs.

Header image for the PYMNTS Intelligence Smart Basket Opportunity Data Book. PYMNTS intelligence reports show 90% of issuers want smart checkout rewards, but adoption depends on control, risk and data rules.

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    Issuers see smart checkout as more than a new rewards feature. They view it as a way to make offers more useful, rewards timelier and cardholder relationships more valuable. Data shows broad interest among banks, credit unions and FinTechs, but their participation will depend on clear rules around control, liability, data use and economics.

    The Smart Checkout Opportunity

    Issuer Interest

    Ninety percent of issuers are very or extremely interested in participating in an embedded smart checkout promotion system. The strongest signal in the report is also the simplest: Issuers want in. Interest is evident across large banks, regional banks, credit unions and FinTechs, suggesting that smart checkout is not just a big-bank opportunity.

    Wallet Priority

    Smart checkout is rated more effective than current rewards at driving top-of-wallet status, with a net effectiveness score of +59 percentage points. Issuers see smart checkout as a stronger tool for influencing which card consumers reach for at checkout. That’s important because card choice can shape interchange revenue, cardholder engagement and long-term loyalty.

    Strategic Loyalty

    Eighty-seven percent of issuers say personalized, shopping-behavior-driven offers will be core or foundational to loyalty within five years. The report suggests issuers are moving beyond broad rewards programs toward offers that respond to how consumers shop today. Large banks are especially aligned, with 92% saying that smart checkout will be a core or foundational part of their rewards models.

    Rewards Gap

    Only 44% of issuers say their current incentives increase loyalty or retention. Current rewards appear to work better for volume than for deeper customer behavior. Most issuers say their existing incentives don’t drive loyalty, card switching or spend timing, leaving room for a more real-time model.

    Control Terms

    Eighty-three percent of issuers require defined control and governance before participating in smart checkout. Issuers don’t appear to reject smart checkout. They just want clear terms. The report shows that participation depends on guardrails, especially around control, reporting, risk management and limits on issuer-funded incentive exposure.

    Methodology

    This Data Book is based on the June 2026 report, “The Smart Basket Opportunity: Why Issuers Are Ready for a Better Rewards System,” a collaboration with FIS. The findings are based on a survey of 70 U.S.-based card issuers and FinTechs whose respondents have day-to-day involvement or strategic decision-making responsibilities in card issuing, transaction processing, customer acquisition and growth, or customer experience. The research examines issuer readiness for embedded smart checkout systems that evaluate transaction data in real time and apply eligible card-linked offers, issuer rewards and brand-funded incentives at the point of sale.

    About

    PYMNTS INTELLIGENCE

    PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists includes leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multilingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.

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