Market Size of Belgium Payments Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 8.30 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Belgium Payments Market Analysis
The Belgium payments market is expected to register a CAGR of 8.3% from 2022 to 2027. The primary factor driving the market's growth in the region is the strong growth in E-commerce and an increase in contactless payments, among others.
Digital payments are increasingly gaining traction in Belgium. Contactless (card) and mobile payments by smartphone are becoming increasingly popular. Before the COVID-19 pandemic, these ways of paying for goods and services were evidence of a steady shift to digital payments.
The shift towards digital payment methods includes the evolution of the front- and back-end parts of the payment system (instant payments, bill payments, request to pay, plastic cards, and digital wallets) and a revolution that involves structural changes to the payment mix and ecosystem (emergence of buy now pay later offerings, cryptocurrencies, and central bank digital currencies).
The increase in e-commerce in the region has influenced the payment landscape in the country. With the emergence of Covid-19, the region's e-commerce market has witnessed enormous growth as the lockdowns and COVID restrictions have forced shoppers to adapt to online retail and shopping, thus increasing the utilization of digital payment methods. Further, most of the population has adopted online transactions through mobile phones, indicating the acceptance and comfort of mobile-based payments.
The adoption of online payment has also affected the usage of cash. It is reflected in the country's cash withdrawal and usage reduction. According to Febelfin use of cash has declined by approximately 49% from 2012 to 2020, and it is forecasted to reduce by 26.5% by the end of 2025.
The emergence of COVID-19 has increased the need to adopt digital commerce, which increased businesses' adoption of digital financial services to provide goods and services to their consumers. Businesses have increasingly offered services, including digital payments and credit at the point of sale. This adoption of digital services for payments has improved access for finance to businesses, reduced costs, and increased the efficiency of the digital economy.
