It is safe to say that Europe is one of the most mature regions in the e-commerce market. The euro is used as a national currency in 19 of the 28 EU member states, and SEPA (Single Euro Payment Area) has become a pan-European method for transferring money.
Although debit and credit cards are the preferred payment method in most European countries, the EU market continues to be very diverse in terms of local, alternative payment methods (payment systems): ELV, Sofort and GiroPay in Germany, iDEAL in Benelux, etc. Payment methods in different parts of the region constitute a complex set of payment methods that are worth exploring before a business actively enters a new region.
Popular payment methods in the UK
The UK is the largest e-commerce market in Europe with a population of 66.65 million people. 92% of adults use the Internet.
PayPal and debit/credit card payments are the most common online payment methods in the UK. According to Statista, about 29% of British consumers used digital wallets for purchases in 2019, with PayPal being the most popular e-wallet. Other digital wallets, such as Apple Pay and Google Pay, were used by a smaller share of consumers.
Open Banking is an emerging payment method in Europe that is rapidly gaining popularity among British businesses and consumers. According to statistics, more than 2.5 million UK users and online businesses already use Open Banking-enabled products to manage their finances and pay online.
Open Banking by ECOMMPAY in the UK
Open Banking by ECOMMPAY allows you to connect to more than 48 banks in the UK, such as Barclays, HSBC, Lloyds and Monzo. By connecting to Open Banking, you can provide your customers with a secure and simple real-time payment solution.
Payment Systems in Europe (EU)
Popular payment methods in Germany
With 84 million people, Germany is one of the largest e-commerce markets in Europe. Revenue in the e-commerce sector in Germany is projected to reach $94,998 million in 2021.
Germany is one of the most fragmented markets in terms of payment preferences. German consumers prefer to pay with debit and credit cards (Mastercard, Visa), SEPA Direct Debit, and alternative payment methods – global and local methods such as PayPal, Sofort, and Giropay are the most popular alternative payment methods in Germany.
Giropay is a popular real-time online bank transfer method in Germany. Giropay allows customers to make payments directly through their bank account. This payment method is well known in the German market, Giropay has integrated more than 1,500 German banks since 2006.
Sofort is a banking system covering almost all consumer banks in Germany. Sofort allows access to 99.9% of German banks, providing real-time transaction confirmation, no chargebacks, a high level of security for merchants and buyers, and many other benefits.
Popular payment methods in Spain
According to Statista, half of Spain’s 47 million people pay for their online purchases using debit or credit cards, while just over 40 percent prefer to use payment systems such as PayPal as their primary online payment method. Also are popular these methods:
Visa
Mastercard
e-wallets
American Express
Popular payment methods in Belgium
With 11.5 million people, most of whom are already familiar with online payments, Belgium is a well-developed and attractive e-commerce market for online business. The number of e-commerce users in the country is expected to reach 8.6 million by 2025. Profits in the e-commerce sector are projected to reach $6747 million in 2021, with an annual growth rate (CAGR 2021-2025) of 4.57%, resulting in a projected market size of $8,067 million by 2025.
How do I accept payments in Belgium? The most popular methods of making payments online are Bancontact payment system, debit (Bancontact/Mister Cash) and credit cards (Visa, Mastercard, American Express), and alternative payment methods such as:
Bancontact is the leading online debit card payment method in Belgium, offered by 80% of local businesses. It is a widespread and reliable payment method on the Belgian market. The cooperation with more than 20 different banks in Belgium makes Bancontact an indispensable payment solution in Belgium.
Popular payment methods in the Netherlands
The Netherlands is one of the most advanced European countries in terms of online payments. Alongside bank card payments such as Visa and Mastercard, Dutch consumers prefer to use alternative payment methods, with local iDeal being the most popular payment method in the country. Other payment methods such as SEPA are also popular.
iDeal
Accepting payments with iDEAL is the key to running a successful online business in the Netherlands. iDeal is a Dutch payment system that allows consumers to make purchases online using their bank account.
According to Statista, iDeal’s online payment share in the Netherlands reached 69% in 2020, dominating other online payment methods.
Popular payment methods in Portugal
Online payments in Portugal are dominated by the local payment solution Multibanco. Other popular payment methods include card payments, PayPal and various payment systems, Open Banking, Direct Debit and bank transfers.
MULTIBANCO is a Portuguese interbank network that can be used for both bank transfers and cash payments (run by Sociedade Interbancária de Serviços S.A. or payment provider SIBS). Multibanco includes all major banks in Portugal, being a well-known and widespread payment solution in the country.
Popular payment methods in Austria
There is no clear leader in the online payment market in Austria. Local consumers prefer to pay with credit and debit cards, use alternative payment methods such as EPS, Sofort, PayPal, digital wallets, Open Banking, Direct Debit and bank transfers.
EPS is the payment method that you need to connect for a successful e-commerce business in Austria. It is the main payment method by bank transfer in Austria and is offered by more than 80% of all online stores in the country.
Sofort is one of the payment solutions widely known in several European countries, including Austria. Learn more about Sofort, its benefits and integration options, here.
Open Banking (Austria)
Open Banking in Austria by ECOMMPAY enables online businesses to initiate deposits from end user bank accounts. Find out more here.
Popular payment methods in France
Payment by bank card is the most popular payment method in France. According to Statista, 57% of French consumers prefer to pay by credit or debit card when shopping online. In contrast to other leading European e-commerce markets, such as the U.K., card payments by local card scheme – Cartes Bancaires – are prevalent in France.
Popular payment methods in Italy
Although Italy is traditionally perceived as a country with a strong “cash payment culture,” it is also a big market for e-commerce. The country’s e-commerce segment is projected to continue its growth, showing an annual growth rate (CAGR 2021-2025) of 5.58%, leading to a projected market size of $28,611 million by 2025.
Although the rate of adoption of electronic payments in the country is lower than in many other European countries, debit and credit card payments and digital wallets are widespread payment methods in Italy. In 2021, 42% of all e-commerce purchases in the country are expected to be paid for by payment cards, according to projections.
Popular payment methods in Poland
Poland is an emerging e-commerce market with a projected growth rate (CAGR 2021-2025) of 7.28% and revenues of $13,545 million in 2021.
While bank payments remained the most popular payment method for Polish shoppers in 2020, alternative payment systems such as PayPal and card payments are not far behind, taking 25% and 24% of online transactions in the country in 2020, respectively. Local payment methods Przelewy24 and BLIK are popular among local users.
Przelewy24 and BLIK are the recommended payment methods for any company wishing to achieve maximum localization and increase sales in Poland.
Przelewy24.
A must consider for all online businesses entering the Polish e-commerce market. Przelewy24 is an online banking payment solution used by more than half of Polish online shoppers. Przelewy24 is a real-time bank transfer system covering all major Polish consumer banks.
BLIK is a Polish mobile payment system that allows millions of smartphone users to pay online, store in stores and withdraw cash from ATMs
Poland is an emerging e-commerce market with a projected growth rate (CAGR 2021-2025) of 7.28% and revenues of $13,545 million in 2021.
While bank payments remained the most popular payment method for Polish shoppers in 2020, alternative payment systems such as PayPal as well as card payments are not far behind, taking 25% and 24% of online transactions in the country in 2020, respectively. Local payment methods Przelewy24 and BLIK are popular among local users.
Przelewy24 and BLIK are the recommended payment methods for any company wishing to achieve maximum localization and increase sales in Poland.
Przelewy24.
A must consider for all online businesses entering the Polish e-commerce market. Przelewy24 is an online banking payment solution used by more than half of Polish online shoppers. Przelewy24 is a real-time bank transfer system covering all major Polish consumer banks.
BLIK is a Polish mobile payment system that enables millions of smartphone users to pay online, store in stores and withdraw cash from ATMs