Market Size of Europe Mobile Payments Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 108.35 Billion |
| Market Size (2029) | USD 373.29 Billion |
| CAGR (2024 - 2029) | 28.07 % |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Europe Mobile Payments Market Analysis
The Europe Mobile Payments Market size is estimated at USD 108.35 billion in 2024, and is expected to reach USD 373.29 billion by 2029, growing at a CAGR of 28.07% during the forecast period (2024-2029).
- Consumers shopping online increased significantly in Europe. According to FIS, Europe's e-commerce market posted 11% YoY growth in 2021 and is expected to extend 11% CAGR through 2025. Digital wallets are the most preferred payment option, and nearly 44% of Europeans would rather pay using e-wallet apps. Merchants also favor digital wallets as they follow the Payment Services Directive rule (PSD2) that guarantees safe payments. Also, these are quick to set up and cost-effective.
- Although global players like Apple Pay, Amazon Pay Google Wallet have a presence in the European region, the natives prefer the Paypal digital wallet service. In 2022, 90% of Europeans used PayPal services. Digitization is at its peak in Europe, and retailers and PSUs are adopting AI technologies to serve customers with easy and safe payment methods. Merchants are approaching payment service providers like Novalnet, who assist with payment plug-ins and AI-based risk management tools.
- The payments Market in Europe is adapting to innovation and technology post the introduction of The European Union's Second Payment Services Directive (PSD2). This will build customer trust in online payment methods and eliminate counterfeit trade.
- The surcharge that Merchant needs to pay while using these apps may refrain from its usage. For instance, Mastercard and Visa charge 1.5% of the transaction value for every online credit card payment from the UK to the European Union.
- Clauses defined by digital apps for merchants can also harness the growth of this sector. In Germany, sellers are prohibited from preferring payment methods other than PayPal. Merchants are also forbidden from offering their goods and services at lower prices if customers choose a less expensive payment method than PayPal.
- Covid-19 promoted financial inclusion, leading to a significant rise in digital payments. Payments made using contactless cards at the POS grew significantly. Purchasing food and other necessities from supermarkets and eateries was a typical usage of online payments. According to a survey by European Central Bank, the share of online transactions in 2022 was 28%, i.e., twice the share in 2019 (14%).
