In the fast-moving world of retail, the humble payment transaction has become much more than a simple moment of financial exchange. For today’s retailers, particularly those navigating the complex omnichannel landscape, payment systems have transformed into a pivotal point of strategic differentiation. Seamlessly integrating customer expectations, operational efficiency, brand trust, regulatory compliance, and global reach, retail payment solutions are no longer just back-end infrastructure—they’re now a powerful lever for growth and loyalty in a borderless digital economy.
Decades ago, the payment process was largely static: in-store, hardware-centric, and with limited flexibility for both merchants and customers. But consumer behavior, technology advancements, and regulatory shifts have profoundly changed this paradigm. Modern consumers expect to shop—and pay—on their own terms: across physical stores, ecommerce sites, mobile apps, and even emerging touchpoints like pop-up shops or home deliveries. Each channel brings unique challenges and opportunities for payment innovation.
At the core of this evolution is the demand for a checkout experience that is fast, frictionless, secure, and locally relevant. As contactless payments and digital wallets become mainstream, and as retailers expand into new geographies, the complexity of supporting diverse preferences, currencies, and regulations increases exponentially. Payment innovation is no longer a luxury for ambitious brands; it’s a necessity for those seeking not just conversion, but lasting customer loyalty.
What distinguishes Adyen within the payments space is its unified commerce approach. Merchants no longer have to juggle disjointed systems for processing, fraud prevention, and reporting. With a single pane of glass, they can reduce technical overhead, streamline operations, and focus on what truly matters: delivering value and trust to shoppers at every touchpoint.
The new connector, maintained collaboratively by the Dynamics 365 Commerce and Adyen product teams, is consistently updated with emerging technologies—from enhanced mobile readiness to support for localized payment alternatives. This synergy positions retailers to meet evolving consumer expectations while remaining agile for future expansion.
Globally popular QR code-based wallets such as Alipay, WeChat Pay, and Japan’s PayPay provide yet another vector of convenience, especially catering to international tourists and local populations accustomed to mobile-first economics. Thanks to Adyen’s broad support for digital wallets, Dynamics 365 Commerce allows merchants to effortlessly enable these options—expanding their appeal to digital natives and travelers alike.
By seamlessly integrating BNPL into both physical and digital storefronts, Dynamics 365 Commerce with Adyen enables merchants to tap into this burgeoning trend—offering flexibility and financial control to shoppers at little risk or overhead to the business. Critically, this native integration helps avoid the complications and security risks associated with disparate third-party integrations.
The release of Apple’s Tap to Pay on iPhone is particularly significant. This innovation effectively turns any iPhone into a payment terminal, with support for contactless card and wallet payments and without the need for additional hardware. On the Android side, devices like Adyen’s Castle payment terminals give retailers an integrated “all-in-one” experience—combining Store Commerce app capabilities with seamless card, wallet, and even QR code payment acceptance.
Such mobility doesn’t just reduce lineups and waiting times; it personalizes the experience, creating opportunities for clienteling and higher-value sales. Store layouts become more flexible, and the ability to quickly scale for seasonal peaks or special events increases—without large capital investments in fixed terminals.
Store associates can generate a secure, Adyen-hosted payment link for any transaction. Shoppers then complete payment on their own devices—choosing from any digital method Adyen supports, including difficult-to-integrate local options. Crucially, this process requires no specialized terminals or hardware stations; even the cloud-based POS can participate. The result: retailers can accept digital payments virtually anywhere and with minimal operational friction.
Notably, Pay by Link is highly effective in “line busting” scenarios. Associates scan customer items, issue a payment link, and suspend the sale. Customers pay on their phones while in line; by the time they reach the counter, the transaction can be recalled, finalized, and receipted in seconds. This approach has the dual benefit of reducing congestion and making better use of store staff—while maintaining the consistency and security standards that large retailers demand.
One of the most quietly transformative features offered by the Adyen connector is “intelligent payment routing.” This system automatically identifies and routes eligible transactions across the most cost-effective network—often regional debit options like STAR, NYCE, or PULSE. For merchants, the impact is immediate and measurable, with significant cost-savings achieved without disrupting the customer experience or introducing new workflows for store staff.
Dynamics 365 Commerce addresses this pain point by introducing a unified, intuitive payment interface across all payment methods—digital, physical, or hybrid. Store employees benefit from a consistent workflow, reduced training requirements, and fewer transaction errors. For retailers, the result is not just greater productivity and faster checkouts, but a more empowered, customer-centric workforce.
Feedback from early adopters echoes these advantages. Chad Davison, IT Systems Team lead at Memory Express Inc., noted, “The new payment flow is really a step in the right direction… Everyone will have a preference and being able to accommodate that easily allows our staff to focus on the customer instead of trying to coordinate complex exchanges between systems. We see a lot of potential in this style of payment flow, streamlining the process and reducing unnecessary button grids.”
Instead of treating fraud as a simple afterthought, risk management is woven into every layer of the payment ecosystem. The proactive identification and blocking of suspicious transactions not only saves revenue, but is crucial for preserving hard-won customer trust. For many retailers, the capability to react quickly and scalably to new threat vectors is as important as the payments themselves.
This flexibility not only improves security (by reducing the surface area for credit card exposure) but also creates a more accommodating, customer-first journey—delivering convenience without compromising compliance.
By integrating digital wallets, BNPL, Pay by Link, Tap to Pay, and intelligent routing within a single, unified strategy—with embedded fraud protection and consistent associate workflows—Dynamics 365 Commerce and Adyen offer a blueprint for operational agility and market expansion. Retailers gain a future-ready foundation that can scale into new geographies and customer segments without constant reinvention.
Success in the next generation of retail will belong to those who see payments not as isolated technologies but as an orchestrated symphony across touchpoints, platforms, and geographies. By adopting a unified framework rooted in flexibility, trust, and customer-centricity, retailers can deliver the seamless, personalized, and secure experiences demanded by the digital-first economy—no matter where their journey takes them next.
Source: Microsoft Next-Gen Retail Payments with Dynamics 365 Commerce + Adyen
Decades ago, the payment process was largely static: in-store, hardware-centric, and with limited flexibility for both merchants and customers. But consumer behavior, technology advancements, and regulatory shifts have profoundly changed this paradigm. Modern consumers expect to shop—and pay—on their own terms: across physical stores, ecommerce sites, mobile apps, and even emerging touchpoints like pop-up shops or home deliveries. Each channel brings unique challenges and opportunities for payment innovation.At the core of this evolution is the demand for a checkout experience that is fast, frictionless, secure, and locally relevant. As contactless payments and digital wallets become mainstream, and as retailers expand into new geographies, the complexity of supporting diverse preferences, currencies, and regulations increases exponentially. Payment innovation is no longer a luxury for ambitious brands; it’s a necessity for those seeking not just conversion, but lasting customer loyalty.
Strategic Partnership: Dynamics 365 Commerce + Adyen
Microsoft’s Dynamics 365 Commerce has long been a leading platform for end-to-end retail operations. In an ambitious move to address next-generation payment challenges, Microsoft partnered with Adyen—a global powerhouse in payment processing, serving nearly 100 countries and supporting an extensive array of local and global payment methods. This partnership produced a native Adyen payment connector for Dynamics 365 Commerce, allowing retailers to deliver consistent, omnichannel checkout experiences and to swiftly adapt to local market requirements.What distinguishes Adyen within the payments space is its unified commerce approach. Merchants no longer have to juggle disjointed systems for processing, fraud prevention, and reporting. With a single pane of glass, they can reduce technical overhead, streamline operations, and focus on what truly matters: delivering value and trust to shoppers at every touchpoint.
The new connector, maintained collaboratively by the Dynamics 365 Commerce and Adyen product teams, is consistently updated with emerging technologies—from enhanced mobile readiness to support for localized payment alternatives. This synergy positions retailers to meet evolving consumer expectations while remaining agile for future expansion.
Omnichannel Flexibility: Meeting Customers Where They Are
Wallet Payments: Security Meets Speed
From urban capitals to small towns, contactless payment wallets like Apple Pay, Google Pay, and Samsung Pay have become an integral part of everyday purchases. Powered by NFC (Near Field Communication) technology, these wallets not only offer a faster checkout experience but also increase security through advanced tokenization, reducing card data exposure in the event of fraud.Globally popular QR code-based wallets such as Alipay, WeChat Pay, and Japan’s PayPay provide yet another vector of convenience, especially catering to international tourists and local populations accustomed to mobile-first economics. Thanks to Adyen’s broad support for digital wallets, Dynamics 365 Commerce allows merchants to effortlessly enable these options—expanding their appeal to digital natives and travelers alike.
Buy Now, Pay Later (BNPL): Empowering Consumer Choice
The Buy Now, Pay Later (BNPL) phenomenon is sweeping the globe, particularly among young consumers. Providers like Klarna and Affirm have made instant financing mainstream at checkout, enabling customers to split payments into manageable installments. For retailers, such offerings are not just about meeting demand; they drive measurable increases in average transaction value and broaden market reach.By seamlessly integrating BNPL into both physical and digital storefronts, Dynamics 365 Commerce with Adyen enables merchants to tap into this burgeoning trend—offering flexibility and financial control to shoppers at little risk or overhead to the business. Critically, this native integration helps avoid the complications and security risks associated with disparate third-party integrations.
Mobility and the Reinvention of In-Store Payments
One of the most transformative trends in modern retailing is the shift to mobile-powered in-store payments. No longer tethered to static cash registers, store associates armed with tablets or smartphones can meet customers anywhere on the shop floor, initiate transactions, access product information and inventory in real time, and process payments on the spot.The release of Apple’s Tap to Pay on iPhone is particularly significant. This innovation effectively turns any iPhone into a payment terminal, with support for contactless card and wallet payments and without the need for additional hardware. On the Android side, devices like Adyen’s Castle payment terminals give retailers an integrated “all-in-one” experience—combining Store Commerce app capabilities with seamless card, wallet, and even QR code payment acceptance.
Such mobility doesn’t just reduce lineups and waiting times; it personalizes the experience, creating opportunities for clienteling and higher-value sales. Store layouts become more flexible, and the ability to quickly scale for seasonal peaks or special events increases—without large capital investments in fixed terminals.
Pay by Link: Digital Flexibility, Hardware-Free Checkout
Supporting locally preferred asynchronous payments has traditionally been a pain point for global retailers. Many solutions require complex hardware or proprietary systems that are hard to maintain. Dynamics 365 Commerce’s new “Pay by Link” method, enabled through Adyen, rewrites this script.Store associates can generate a secure, Adyen-hosted payment link for any transaction. Shoppers then complete payment on their own devices—choosing from any digital method Adyen supports, including difficult-to-integrate local options. Crucially, this process requires no specialized terminals or hardware stations; even the cloud-based POS can participate. The result: retailers can accept digital payments virtually anywhere and with minimal operational friction.
Notably, Pay by Link is highly effective in “line busting” scenarios. Associates scan customer items, issue a payment link, and suspend the sale. Customers pay on their phones while in line; by the time they reach the counter, the transaction can be recalled, finalized, and receipted in seconds. This approach has the dual benefit of reducing congestion and making better use of store staff—while maintaining the consistency and security standards that large retailers demand.
| Payment Option | Customer Experience | Merchant Benefit | Hardware Requirement |
|---|---|---|---|
| NFC Wallets | Fast, contactless, secure | Broader appeal, more conversions | Standard POS, NFC |
| QR Code Wallets | Digital, supports global tourists | Access to new market segments | Mobile or POS |
| Buy Now, Pay Later | Instant financing at checkout | Higher average order value, loyalty | Integrated via Adyen |
| Tap to Pay/iPhone | Card/NFC payment on any iPhone | Eliminate dedicated hardware | Smartphone only |
| Adyen Castle (Android) | All-in-one, mobile payments | Flexibility, expand POS capacity | Payment terminal |
| Pay by Link | Pay with own phone, async support | Minimized hardware, supports local methods | None (cloud POS) |
Intelligent Payment Routing: Saving Behind the Scenes
While shoppers seldom think about what happens after they tap their card, retailers are acutely aware of the costs associated with payment processing—particularly interchange fees. What many don’t realize is that the same debit card transaction can travel across multiple possible networks, some of which charge lower fees than the major brands.One of the most quietly transformative features offered by the Adyen connector is “intelligent payment routing.” This system automatically identifies and routes eligible transactions across the most cost-effective network—often regional debit options like STAR, NYCE, or PULSE. For merchants, the impact is immediate and measurable, with significant cost-savings achieved without disrupting the customer experience or introducing new workflows for store staff.
Consistency and Productivity: Rethinking Store Associate Experience
While the customer-facing side of a payment system garners the most attention, the impact on store associate efficiency can be just as profound. A common complaint among retailers is the “cognitive friction” required when switching between disparate interfaces for processing credit, debit, BNPL, gift cards, and other digital payments.Dynamics 365 Commerce addresses this pain point by introducing a unified, intuitive payment interface across all payment methods—digital, physical, or hybrid. Store employees benefit from a consistent workflow, reduced training requirements, and fewer transaction errors. For retailers, the result is not just greater productivity and faster checkouts, but a more empowered, customer-centric workforce.
Feedback from early adopters echoes these advantages. Chad Davison, IT Systems Team lead at Memory Express Inc., noted, “The new payment flow is really a step in the right direction… Everyone will have a preference and being able to accommodate that easily allows our staff to focus on the customer instead of trying to coordinate complex exchanges between systems. We see a lot of potential in this style of payment flow, streamlining the process and reducing unnecessary button grids.”
Fraud Protection: Secure by Design
Retail’s digital transformation brings extraordinary opportunity, but also ever-evolving threats. Fraudsters now target every point of payment—from online storefronts to in-store and mobile endpoints. Microsoft and Adyen have prioritized embedded fraud detection throughout the payment flow. Dynamics 365 Commerce merchants can now leverage Adyen’s robust, built-in risk management tools for both ecommerce and Pay by Link transactions.Instead of treating fraud as a simple afterthought, risk management is woven into every layer of the payment ecosystem. The proactive identification and blocking of suspicious transactions not only saves revenue, but is crucial for preserving hard-won customer trust. For many retailers, the capability to react quickly and scalably to new threat vectors is as important as the payments themselves.
Enabling Post-Visit and Remote Payments
Omnichannel retail goes beyond the walls of the store. Increasingly, merchants are looking for ways to support post-visit, asynchronous, and remote payments—enabling scenarios such as:- Customized or high-value orders that require customer deliberation
- Mixed fulfillment models (buy online, ship to home, pay later)
- Remote or call-center transactions that must comply with PCI DSS standards
This flexibility not only improves security (by reducing the surface area for credit card exposure) but also creates a more accommodating, customer-first journey—delivering convenience without compromising compliance.
A Unified Framework: Building for the Future
The lesson from leading retailers is clear: the key to payment success lies not in adopting the flashiest new technology, but in architecting a flexible, modular system that can incorporate best-in-class tools, adapt quickly to local and regulatory pressures, and above all, align with customer preferences.By integrating digital wallets, BNPL, Pay by Link, Tap to Pay, and intelligent routing within a single, unified strategy—with embedded fraud protection and consistent associate workflows—Dynamics 365 Commerce and Adyen offer a blueprint for operational agility and market expansion. Retailers gain a future-ready foundation that can scale into new geographies and customer segments without constant reinvention.
Pros and Strengths
- Global Reach, Local Relevance: With Adyen’s support for nearly 100 countries and dozens of payment options, retailers can enter new markets with native support for local payment methods and wallets.
- Reduced Technical Overhead: A single connector managed by Microsoft and Adyen streamlines maintenance and accelerates new feature deployment.
- Hardware Flexibility: Solutions like Tap to Pay on iPhone and Pay by Link reduce capital expenditure and increase operational mobility.
- Operational Cost Savings: Intelligent payment routing and unified reporting yield measurable reductions in processing fees and back-office burden.
- Frictionless Customer Experience: Consistency across channels and payment methods removes barriers to conversion and loyalty.
- Embedded Security: Built-in risk tools reduce fraud exposure and maintain customer trust.
Cautions and Considerations
- Dependency on Platform Partners: Reliance on Adyen’s platform means retailers must carefully monitor for any changes in fee structures, API availability, or region-specific compliance updates.
- Complex Integration Environments: While the connector reduces technical challenges, connecting multiple payment flows with legacy systems can still introduce significant migration complexity for large, established retailers.
- Evolving Compliance Landscape: Regional restrictions and regulatory requirements—such as GDPR in Europe or CCPA in California—require continuous vigilance and fast-response capability from both Microsoft and its merchant clients.
- Consumer Education: With more options comes the need for staff and customer education. The effectiveness of advanced payment flows depends partly on user awareness and trust.
- Future-Proofing Risk: The payment tech sector evolves rapidly; features hailed as innovative today can be quickly eclipsed. Retailers should ensure adaptability remains a core architectural principle.
Looking Ahead: Payments as a Strategic Catalyst
The payment moment—once an afterthought—now sits at the nexus of customer experience, compliance, and profitability. Enterprises leveraging Dynamics 365 Commerce in partnership with Adyen are positioned to turn this critical juncture into a springboard for growth, loyalty, and operational excellence.Success in the next generation of retail will belong to those who see payments not as isolated technologies but as an orchestrated symphony across touchpoints, platforms, and geographies. By adopting a unified framework rooted in flexibility, trust, and customer-centricity, retailers can deliver the seamless, personalized, and secure experiences demanded by the digital-first economy—no matter where their journey takes them next.
Source: Microsoft Next-Gen Retail Payments with Dynamics 365 Commerce + Adyen