SINGAPORE, SEPTEMBER 30, 2026 — Adyen, the financial technology platform of choice for leading businesses, today released Chapter 2 of its Adyen Index 2026 Singapore Retail Report – The Agentic Paradox. The findings reveal a new tension quietly building up at the heart of Singapore’s retail landscape: consumers and merchants have both been adopting AI, yet neither trust it at the critical point of payment.
The Agentic Paradox Defined: Everyone’s Stuck at Checkout
Singapore’s retail sector, with 72% of the population already using AI assistants for shopping, is primed for AI-powered transformation. 42% have even made it habitual, turning to AI assistants for their shopping needs at least once a week. When it comes to letting AI assistants complete a purchase on their behalf, however, only 29% of Singaporeans say they would be comfortable doing so. Conversely, 58% are uncomfortable with the idea and even among those who already use AI for shopping, nearly half (49%) say they would hesitate at the payment stage.
Among Singapore merchants, a parallel ‘upswing in returns, downturn in trust’ pattern can be seen. According to research, AI-referred visitors to retail sites generate 53% more revenue per visit than non-AI traffic and 54% higher conversion rate. Additionally, 39% of merchants who deployed AI for personalization and recommendations saw a jump in turnover, while 24% saw a drop.
When it comes to trusting AI agents to engage and process transactions, 36% of merchants cite the risk of losing direct customer relationships or brand control as a reason to delay broader AI adoption. The Index also identifies checkout as a critical point of contention for merchants. When payment errors occur, the consequences can be severe and long-lasting: 24% of customers say they may go through with the purchase but only return if no alternatives exist, 20% would abandon the purchase entirely and avoid the retailer in the future, and 15% would switch to a competitor altogether.
“Singapore is one of the most digitally connected markets in the world. Consumers here have embraced AI for discovery and inspiration, and businesses are adopting AI as a reflection of our times,” said Ben Wong, General Manager, Southeast Asia and Hong Kong, Adyen. “But the data tells a more nuanced story. Adoption is not the same as trust. Hesitation takes over the moment money changes hands — and that gap is exactly where the next chapter of retail will be decided.”
Drivers of AI-Assisted Shopping
The Index further shows that AI adoption skews toward younger, higher-income, male consumers. Gen Z (85%) and Millennials (80%) lead usage, compared to Gen X (68%) and Baby Boomers (52%). Men are more likely than women to use AI shopping assistants (76% vs 68%), and those with annual household incomes of S$8,000 and above report the highest adoption (82%).
The power users are parents with children under 18. This group spends more than double on social media purchases compared to those without children (S$140 vs S$67 per purchase), uses AI more frequently (82% vs 68%), and is more open to AI-completed purchases (62% vs 54%). Greater time constraints might be behind this reliance on AI for fast inspiration, personalized recommendations and efficient decision-making.
As Singaporeans dial up reliance on AI, they are also treading cautiously. Nearly half of Singaporeans (49%) are using biometrics to authenticate transactions. A further 29% avoid saving payment details on devices and 27% feel more confident when retailers
use two-factor authentication. Among high-value social media spenders (S$200+ per purchase), additional security checks nearly double comfort levels from 11% to 21%.
The Path Forward: Agentic Commerce
As merchants grapple with the pace of change, they also understand that the demand for AI integration will only accelerate. Nine in ten merchants (89%) state they are familiar with agentic commerce, including 47% who are very familiar and can confidently explain it. The most commonly cited reasons for planning to invest in agentic commerce over the next two years include:
- Drive incremental sales through AI-led product discovery (61%);
- Protect and retain direct customer relationships (60%); and
- Managing payment risk and machine-speed transactions (60%)
“Most payment systems were built for humans, not machines. Agentic commerce brings new rules, new standards and new complexity. The merchants who win will be those who weave trust into the infrastructure itself by making payments invisible, resilient and reliable, at machine speed,” added Wong.
