Market Trends of Europe Mobile Payments Industry
E-commerce to Drive the Mobile Payments Market
- Mobile commerce is on the rise in Europe region as there is a rapid increase in consumers using their smartphones and tablets to purchase services and goods. It is predicted that m-commerce revenue will grow and reach 134.37 billion USD by 2024.
- In Germany, 44% of all domestic online transactions use digital wallets. Paypal has 83% contribution towards digital payments in the country. 20% of all in-store transactions in the country are made using mobile devices.
- The value of contactless payments spiked to 50% in 2022 for the United Kingdom. British consumers are the least mobile-centric nation compared to Australia, Brazil, Mexico, the UAE, the U.K., and the U.S.
- According to a study by Pymnts, 13.6% of Dutch consumers paid for their in-store purchases with mobile payment in Q3 2022, followed by Spain with 12.7% during the same period. Regarding online transactions, 19.2% of consumers in the Netherlands reported using a digital wallet for their eCommerce payment in the third quarter of the year, compared to Spain's 29.3%.
- Based in Greece, DIAS SA joined The European Mobile Payment Systems Association. Becoming a member of the EMPSA partnership will benefit the Greek financial ecosystem in its business expansion. With more number of companies joining the association, European citizens will have the option to use the mobile payment solution of their choice across Europe.
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United Kingdom is expected to hold major market share of Europe Mobile Payments Market
- The global Covid-19 pandemic and associated lockdowns have led to significant changes in patterns of payments in the UK. Lockdowns resulted in large sections of the economy shutting down entirely for parts of the year. In those parts of the economy that remained operational, many businesses switched to home working arrangements, reducing expenditure on travel and city center spending. As a result of these measures, 2020 saw a significant fall in the number of payments made in the UK.
- However, as lockdown restrictions were lifted in 2021, the economy reopened, and the total number of payments made returned to pre-pandemic levels. The pandemic reduced the total number of payments made in the UK and changed the types of costs used. People made greater use of contactless payments, online banking, and mobile wallet channels, mainly at the expense of cash payments.
- In 2031, there are forecast to be fewer than three billion cash payments made in the UK, accounting for around 6% of all payments. Rather than the UK becoming a cash-free society over the next decade, the UK will transition to an economy where cash is less important than it once was but remains valued and preferred by many.
- Around one in eight people in the UK (12% of adults) used Buy Now Pay Later (BNPL) services to purchase something during 2021. There wasn't a significant difference in use between male and female consumers. The age group that most used these services was 35-44-year-olds, with one in five adults in this age group using BNPL services during 2022. In contrast, 4% of people aged 65 or over used these services in 2021.
- Remote banking remained popular in the UK in 2022, with 86% of all UK adults using at least one form of remote banking during 2021 (online banking via a computer, mobile banking via an app on a smartphone or tablet, or calling their bank via a telephone banking service). Most people in all age groups used remote banking in 2022, ranging from 72% of those aged 65 and over to 92% of people aged 35-44.
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