Market Trends of Europe Payments Industry
This section covers the major market trends shaping the Europe Payments Market according to our research experts:
Increasing use of Digital wallets while shopping online
- With changes in customer preference for electronic payments, a desire for easier cross-border transactions, and the upcoming launch of the official European Digital Authenticity Wallet, digital wallets are rising in Europe. It is a temporary fix until digital and mobile wallets overtake traditional online payment methods in Europe.
- The wallet of choice for millions of European digital wallet users differs significantly by country. Russia prefers YooMoney (formerly Yandex. Money), and Qiwi, the Netherlands prefers iDEAL, and in Germany, 70% of consumers use PayPal, while Sweden likes Klarna and Swish. Even before the pandemic, digital payments were so popular in Sweden that only 13% of Swedes paid cash for their latest in-person purchase.
- Digital wallets have been identified as a critical payment method for e-commerce transactions in the European market. They can help relieve consumer concerns about sharing card details with merchants directly. Digital wallets have been quickly adopted by advanced e-commerce economies such as the United Kingdom and Germany, but smaller e-commerce markets embrace this payment method.
- PSD2, the European directive governing payment services, is a crucial pillar of payment and identity advancement. It combines the two into a single service and boosts consumer confidence, facilitating the adoption of online payment methods and online identity services.
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Growth in usage of mobile device
- European countries like Czechia, the United Kingdom, Ireland, Sweden, and many more spent more time on computers, tablets, and mobile devices. Almost every region spent more time online on mobile devices. As mobile internet usage grows, global spending on the Google Play and Apple App Stores increases year after year. Overall, demand for the App Store is expected to be more than double that of Google Play.
- When it comes to online buying, cards continue to be a key payment method in the majority of European markets. Card use is especially prevalent in wealthy, technologically advanced countries with the highest bank penetration. Card payments are currently highest in Denmark (63.4% of e-commerce payments), Ireland (60%), and the United Kingdom (53%).
- Most Europeans are increasingly considering and adopting e-wallets as their preferred payment method because they provide a much more convenient way to receive and send money, whether they are purchasing something from a store or paying online. E-wallets have also allowed businesses to accept alternative forms of payment, such as cryptocurrencies or foreign currency. This dominance is expected to grow further, with e-wallets accounting for up to 30% of e-commerce transactions in Europe by 2024.
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