Rising consumer interest in digital wallets, debit and credit cards, BNPL and even cryptocurrency has small business owners accepting more forms of payment than ever before, which puts third-party merchant services providers at the center of their livelihoods. According to the J.D. Power 2026 U.S. Merchant Services Satisfaction Study, the manner and speed with which transactions are processed, as well as the ability to manage costs and avoid software and hardware glitches, have become critical drivers of satisfaction with merchant services providers.
“Merchant services providers have become a vital link in the way small businesses manage payments and are a critical customer touchpoint, which can create opportunities and challenges for the companies providing the necessary technology services and hardware,” said John Cabell, managing director of payments intelligence at J.D. Power. “The data in this year’s study spotlights a rising tension between business owners’ growing pressure to offer multiple payment options and their increased desire to pass processing costs onto retail customers, a shift that can negatively affect the customer experience.”
Following are key findings of the 2026 study:
Banks and specialists deliver on satisfaction: Large U.S. banks lead specialists and processors in overall merchant satisfaction, often integrating these payment processing services with existing banking relationships. In contrast, newer, software-driven specialist processors close the satisfaction gap to banks among startup small businesses. These specialist providers perform well among startups for their rewards programs and technology-driven guidance that helps businesses operate more efficiently.
Digital payments continue to gain acceptance: Overall, 92% of merchants in the U.S. now accept payments via digital wallets, an increase of 4 percentage points since 2024. Likewise, BNPL is now accepted by 58% of U.S. small businesses, up from 54% in 2024. BNPL is now the fourth most accepted form of payment behind debit or credit cards (96%), digital wallets (92%), and cash (78%). Personal checks are now accepted by just 57% of U.S. small businesses, down from 63% in 2024.
Is crypto next?: Cryptocurrency adoption among U.S. small businesses stands at 19% this year, up 4 percentage points from 2025. In addition, sentiment is improving: 37% of merchants say they have a favorable view of cryptocurrency, and 33% of non-accepting merchants say they would likely accept crypto payments if their merchant services provider enabled the option.
Surcharges create tough balancing act for business owners: 35% of businesses now include surcharges for customers who use credit cards. New small businesses and those in the restaurant industry show the largest increases in this practice. However, the clear downside is that 32% of merchants say their retail customers occasionally or frequently cancel a purchase and walk away when a surcharge is added to their transaction.
Tip, donation and surcharge screens disrupt sales process: Nationwide, 61% of merchants use at least one default screen—such as tip, donation, or surcharge prompts—on their point-of-sale hardware. While these screens make it easier to apply extra charges, they also contribute to higher transaction abandonment rates by customers due to growing software and hardware issues. In general, only about half of customers (51%, down from 55% in 2025) never encounter a system problem.