Self-Service Is on the Rise Across Retail and Banking

Shoppers are increasingly turning to self-checkout to streamline their retail experiences. This shift reflects a broader trend toward automation, with consumers seeking more efficiency and shorter waits in their purchasing journeys.

While millennials and Gen Z shoppers are adopting self-service with enthusiasm, their older counterparts are not yet sold on the technology. Moreover, for some shoppers who love self-checkout, the reasons may not be as innocuous as seeking convenience.

The rise of self-service technologies is impacting industries beyond retail, with banking customers also increasingly amenable to digital and self-guided experiences.

Get Unlimited Access
Complete the form below for free, unlimited access to all our Data Studies, Trackers, and MonitorEdge reports.

Self-service technologies are reshaping how consumers engage with retailers and financial institutions (FIs). As digital capabilities become more prevalent, shoppers and banking customers alike are increasingly seeking out faster, more convenient options. This shift reflects broader trends toward connected solutions, with businesses adapting to meet the growing demand for efficiency as human interaction becomes less of a must-have.

While younger generations are quick to embrace these innovations, adoption patterns vary across demographics. Older consumers are more hesitant to get on board with these new technologies.

As digital solutions continue to catch on, they are reshaping the experiences of modern consumers across the retail and banking industries.

Shoppers Seek Self-Checkout for Efficiency
Self-Checkout Isn’t for Everyone Just Yet
Self-Service Enthusiasm Applies to Banking as Well
Capturing Demand for Convenience With Self-Service in Retail and Banking

Shoppers Seek Self-Checkout for Efficiency

Self-checkout is quickly becoming many shoppers’ preference.

According to research from NCR Voyix, adoption of self-checkout technology is on the rise. For example, 43% of consumers now prefer to use self-checkout at the grocery store over traditional methods.

Overall, 87% of shoppers across several countries have used self-checkout and would use it again. Additionally, 74% of consumers approve of automating checkout, and 55% of retail shoppers rarely or never seek interactions with retail employees.

74%

of consumers approve of automating checkout.

Self-checkout demand is driven by a need for speed.

What consumers especially like about the technology is how it makes shopping more efficient. The top two reasons consumers cite for preferring self-checkout are speed and shorter lines.

Nearly three-quarters of consumers around the world want their trips to the grocery store to be as speedy as possible. Similarly, 52% want the same of their retail shopping journeys.

Self-Checkout Isn’t for Everyone Just Yet

Most young shoppers seek out self-checkout.

60%

of consumers ages 45 to 60 prefer traditional checkout.

More than half — 53% — of consumers ages 18 to 44 prefer self-checkout. Conversely, the majority of older shoppers prefer traditional, staffed checkout.

In addition, for consumers in younger generations, the availability of self-checkout can even influence their choice of merchant. Most Generation Z consumers (52%) say they would likely switch retailers for next-generation self-service options such as checkout-free stores. Similarly, 49% report they would likely spend more at a retailer that offered automated checkout. Another 52% say connected stores would boost their loyalty to retailers.

However, not everyone is eager to play cashier.

For instance, only 40% of those ages 45 to 60 and just 26% of those over 60 prefer self-checkout. For consumers who would rather stick with traditional checkout, the most common reason is a full shopping cart. These shoppers might find checking out the old-fashioned way to be simpler and quicker.

Younger consumers’ preference for self-checkout may not always be benign.

In fact, 31% of Gen Z consumers and 21% of millennials acknowledge they have intentionally taken a product without scanning it. Among those who have deliberately stolen an item at self-checkout, 44% say they will probably do so again. All told, 69% of consumers think the technology contributes to theft.

Self-Service Enthusiasm Applies to Banking as Well

The rise of self-service technologies is impacting industries beyond retail, with banking customers also increasingly amenable to digital and self-guided experiences.

Consumers are satisfied with the service they get from remote tellers.

Nearly seven in 10 consumers agree that working with remote tellers via video at interactive teller machines (ITMs) “feels just like” face-to-face service. In addition, 81% of those who have done so say remote tellers are knowledgeable and speedy.

Moreover, 36% said the experience was actually better than working with a teller in person. Nine-tenths of consumers who have used video banking say they would do so again.

23%

of Gen Z consumers say they choose FIs based on self-service banking convenience.

FIs are increasingly adopting remote and self-service technologies.

A recent letter from the Federal Deposit Insurance Corp. (FDIC) will make “branchless banking” easier from a regulatory standpoint. It stated that nonmember banks will not need regulators’ consent to set up bank branches as ITMS in non-branch locations around their respective states. These self-service locations could increase smaller banks’ ability to compete with industry giants.

Additionally, in the spring, Arizona Financial Credit Union kicked off a partnership with retail banking firm NCR Atleos. Through the collaboration, the FI uses Atleos’ ATM-as-a-service (ATMaaS) capabilities to make self-service banking more efficient.

The future of banking will be more self-service than ever.

Younger generations are significantly likelier to consider self-service when picking a bank than their older counterparts. Nearly one-quarter of Gen Z consumers report choosing FIs based on self-service banking convenience. Conversely, only 15% of baby boomers and seniors say the same.

Capturing Demand for Convenience With Self-Service in Retail and Banking

To stay competitive in the evolving retail and banking landscapes, businesses must strategically integrate self-service technologies while addressing potential challenges. Adoption is already high among younger consumers, but businesses need to address varying preferences and concerns across demographics to drive further growth. PYMNTS Intelligence offers the following action plan for merchants and banks to capture this opportunity:

Tailor solutions by demographic. With most younger consumers but only a handful of older consumers preferring self-service, retailers should offer both self-guided and traditional options to meet diverse needs.
Enhance security protocols. With concerns about theft and misuse, particularly at self-checkout, adopting advanced monitoring tools and real-time fraud detection is crucial.
Expand digital banking capabilities. FIs that offer video banking can gain a competitive advantage while providing consumers with efficient experiences.

By focusing on these key strategies, retail and banking businesses can adapt to consumer demands while ensuring that security and accessibility remain priorities.

About

Candescent is the largest independent digital banking platform in the United States. With a comprehensive, digital-first product suite, Candescent drives success for its financial institution clients by delivering a seamless experience that elevates and connects digital and physical banking channels. Candescent currently serves more than 1,300 banks and credit unions representing nearly 30 million registered users. For more information, visit  candescent.com.

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 include 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.

The PYMNTS Intelligence team that produced this Tracker:
Managing Director: Aitor Ortiz
Writer: Carson Olshansky
Senior Content Editor: Alexandra Redmond
Content Editor: Joe Ehrbar
Analyst: Mariano Soler

We are interested in your feedback on this report. If you have questions or comments, or if you would like to subscribe to this report, please email us at feedback@pymnts.com.

Disclaimer

The Digital-First Banking Tracker^® Series may be updated periodically. While reasonable efforts are made to keep the content accurate and up to date, PYMNTS MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE CORRECTNESS, ACCURACY, COMPLETENESS, ADEQUACY, OR RELIABILITY OF OR THE USE OF OR RESULTS THAT MAY BE GENERATED FROM THE USE OF THE INFORMATION OR THAT THE CONTENT WILL SATISFY YOUR REQUIREMENTS OR EXPECTATIONS. THE CONTENT IS PROVIDED “AS IS” AND ON AN “AS AVAILABLE” BASIS. YOU EXPRESSLY AGREE THAT YOUR USE OF THE CONTENT IS AT YOUR SOLE RISK. PYMNTS SHALL HAVE NO LIABILITY FOR ANY INTERRUPTIONS IN THE CONTENT THAT IS PROVIDED AND DISCLAIMS ALL WARRANTIES WITH REGARD TO THE CONTENT, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT AND TITLE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF CERTAIN WARRANTIES, AND, IN SUCH CASES, THE STATED EXCLUSIONS DO NOT APPLY. PYMNTS RESERVES THE RIGHT AND SHOULD NOT BE LIABLE SHOULD IT EXERCISE ITS RIGHT TO MODIFY, INTERRUPT, OR DISCONTINUE THE AVAILABILITY OF THE CONTENT OR ANY COMPONENT OF IT WITH OR WITHOUT NOTICE.
PYMNTS SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSOEVER, AND, IN PARTICULAR, SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR INCIDENTAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOSS OF REVENUE, OR LOSS OF USE, ARISING OUT OF OR RELATED TO THE CONTENT, WHETHER SUCH DAMAGES ARISE IN CONTRACT, NEGLIGENCE, TORT, UNDER STATUTE, IN EQUITY, AT LAW, OR OTHERWISE, EVEN IF PYMNTS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
SOME JURISDICTIONS DO NOT ALLOW FOR THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, AND IN SUCH CASES SOME OF THE ABOVE LIMITATIONS DO NOT APPLY. THE ABOVE DISCLAIMERS AND LIMITATIONS ARE PROVIDED BY PYMNTS AND ITS PARENTS, AFFILIATED AND RELATED COMPANIES, CONTRACTORS, AND SPONSORS, AND EACH OF ITS RESPECTIVE DIRECTORS, OFFICERS, MEMBERS, EMPLOYEES, AGENTS, CONTENT COMPONENT PROVIDERS, LICENSORS, AND ADVISERS.
Components of the content original to and the compilation produced by PYMNTS is the property of PYMNTS and cannot be reproduced without its prior written permission.
The Digital-First Banking Tracker^® Series is a registered trademark of What’s Next Media & Analytics, LLC (“PYMNTS”).

Digital-First Banking Tracker^® Series Report

Going Solo: Self-Service Catches on Across Retail and Banking