Malta E-Commerce Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Malta E-Commerce Market Trends and Insights

Nationwide Fibre Broadband Coverage Reaching 95% of Households

GO plc finished its EUR 100 million (USD 113 million) build-out in May 2025, passing 371,000 homes. Universal gigabit access enables merchants to add video consultations and augmented-reality previews, features that require 12-18 months of backend integration before revenue impact materializes.^{[1]European Commission, “Digital Economy and Society Index (DESI),” ec.europa.eu} Fibre also supports click-and-collect networks that cut last-mile costs by 30% for electronics retailers such as Scan Malta, while open-access regulation prevents monopoly pricing on consumer broadband.^{[2]Malta Communications Authority, “National e-Commerce Strategy 2024-2030,” mca.org.mt}

National e-Commerce Strategy 2024-2030 Offering VAT Incentives to SMEs

Quarterly rather than monthly VAT filing for micro-enterprises eases compliance by 40 hours annually and shrinks refund lead-times to 45 days. EUR 2.5 million (USD 2.8 million) in grants had assisted 320 merchants by September 2025, lifting export revenue potential for artisans and software firms. Alignment with the EU Import One-Stop Shop threshold at EUR 150 (USD 170) further eliminates paperwork for inventory sourced from Asia.

Strong Expat and Digital-Nomad Population Boosting Cross-Border Basket Values

About 8,000-10,000 permit-holding remote workers resided in Malta by end-2025.^{[3]Malta Digital Innovation Authority, “Digital Nomad Programme Statistics,” digitalmalta.org.mt} Their average online basket hit EUR 180 (USD 203) versus EUR 95 (USD 107) for local residents, skewing toward fashion, electronics, and subscription services. Nomad demand has also lifted B2B procurement of coworking equipment and specialty foods, adding roughly USD 13 million to 2025 gross merchandise value.

PSD2-Driven Instant Payments Increasing Shopper Trust

The Central Bank mandated instant-euro clearing in January 2025, making funds irrevocable within 10 seconds.^{[4]Central Bank of Malta, “Instant Payments Rollout Announcement,” centralbankmalta.org} Merchants now release orders on the same day, compressing delivery cycles from 48 hours to 12 hours for domestic shipments. Instant settlement also underpins BNPL lender liquidity, lowering merchant discount rates by 140 basis points.

Limited domestic warehouse space driving reliance on overseas fulfilment

Malta maintains only 180,000 m² of modern warehouse stock, forcing 60% of parcels to route through Sicily, which adds island surcharges of EUR 27.50 (USD 31) and 1-2 days to transit. Height restrictions cap buildings at 12 meters, slicing cubic efficiency by 40%, while lease rates of EUR 120-150 per m² (USD 136-170 per m²) are double those in Southern Italy. A 4,000 m² expansion by EuroBridge in March 2025 reached 70% utilization in four months, confirming the shortage.

Persistent cash-on-delivery preference

Cash-on-delivery represented 22% of 2025 orders against 8% European average, with rural Gozo hitting 40%. Couriers levy EUR 2.50-3.50 (USD 2.8-4.0) per COD parcel, inflating fulfillment costs by up to 12% for low-value goods. Return rates rise to 28% under COD, versus 18% for prepaid orders, eroding merchant margins.

Segment Analysis

By Business Model: Digitization Accelerates Wholesale Activity

B2C held 84.34% of 2025 value, yet the B2B slice is climbing fastest at 6.57% CAGR as SMEs adopt procurement platforms and exploit VAT simplification. The Malta e-commerce market size for B2B transactions is projected to jump from USD 74 million in 2026 to nearly USD 103 million by 2031, helped by average order values of USD 1,200 and the archipelago’s role as a re-export node to North Africa. 

Pandemic-era workflow changes entrenched online sourcing: 76.5% of SMEs now place at least one digital order monthly, up from 48% in 2019. Re-order automation and embedded trade credit deepen buyer lock-in, sustaining higher gross margins than consumer retail. B2C growth shows early saturation at 4.3% CAGR because the population base is only 542,000 and cross-border platforms already capture 45% of outbound spend.

By Device Type (B2C): Smartphones Consolidate Lead

Mobile devices generated 69.42% of checkouts in 2025, with the mobile share of the Malta e-commerce market size expected to crest at 75% by 2031. Full 5G coverage and one-tap wallets accelerate conversion, while desktop remains relevant for high-ticket electronics and business purchases, holding 30.58% share with a gentler 4.6% CAGR. 

English-language fluency eliminates localization costs, enabling Amazon and Zalando mobile apps to gain traction without Maltese translation. Progressive-web-app adoption further narrows the performance gap, and Apple Pay, as well as Google Pay, now handle 45% of mobile transactions. Tablets and other devices together remain below 1%.

By Payment Method (B2C): BNPL Gains but Wallets Stay Dominant

Digital wallets held a 37.68% share in 2025, underpinned by SEPA instant-payment rails and PSD2 open-banking APIs. Credit and debit cards followed at 34.2%, while BNPL expanded from a 9.8% share in 2025 toward a projected 14% by 2031, equating to a 7.23% CAGR. 

Klarna reported 85 million users worldwide in 2024, with its European operations accounting for 62% of revenue. Instant settlement has lowered merchant discount rates to 3.2% for BNPL versus 1.8% for instant credit transfers, yet higher basket sizes and conversion-rate improvements justify the premium. Other methods, including bank transfers and COD, total 18.32% value share; COD’s transaction share is higher, but the average ticket is lower.

By Product Category (B2C): Food Delivery Closes the Gap

Beauty and personal care led 2025 spend at 24.67% thanks to low return rates and repeat frequency, but food and beverages are pacing fastest at 6.28% CAGR as Wolt and Deliveroo extend 30-minute grocery options. By 2031, food could approach a 20% slice of the Malta e-commerce market share, aided by high mobile-order density in urban corridors. L’Oréal realized EUR 12.1 billion (USD 13.7 billion) online revenue globally in 2024, showcasing beauty’s e-commerce maturity.

Consumer electronics held 16.3% share, fashion and apparel 18.9%, furniture and home 12.1%, and the remainder 9.4% in 2025. All secondary categories are growing between 4.2% and 5.1% due to rising BNPL penetration and improved cross-border logistics.

Note: Segment shares of all individual segments available upon report purchase

Geography Analysis

Malta's 316-square-kilometer geography creates unique e-commerce dynamics. The Northern Harbour District, comprising Sliema, St. Julian's, and Valletta, generates 48 percent of transaction volume despite housing 22 percent of the population. This is driven by higher disposable incomes (EUR 32,000 median annually versus EUR 24,000 nationally), dense commercial infrastructure, and a concentration of 8,000 to 10,000 digital nomads and expats. GO plc's May 2025 completion of nationwide fibre-to-the-home rollout, covering 371,000 homes with 94 percent conversion, bridged the urban-rural broadband gap. However, e-shopper penetration remains higher in urban areas (92 percent) compared to rural Gozo and southern villages (68 percent), due to older demographics and lower payment-card ownership. Cash-on-delivery is more prevalent in rural areas, accounting for 35 to 40 percent of transactions versus 22 percent nationally, adding handling costs of EUR 2.50 to EUR 3.50 per transaction.

Cross-border e-commerce dominates Malta's market, with platforms like Amazon, eBay, and Zalando projected to account for 45 percent of market value by 2025. Investments such as Amazon's EUR 15.7 billion in European fulfillment centers and SHEIN's distribution hub in Poland have reduced delivery times, eroding domestic merchants' convenience advantage. Cross-border penetration rose from 29 percent in 2019 to an estimated 38 percent in 2025, with projections of 42 to 45 percent by 2031. Maltese merchants face challenges in outbound sales due to MaltaPost's suspension of U.S. parcel services in 2025 and APG Europe's EUR 27.50 surcharge on inbound parcels under EUR 550, creating pricing disadvantages.

Despite leading the EU in e-government service maturity, Malta's domestic e-commerce market remains fragmented, with 15 to 20 small pure-plays holding 18 percent market share in groceries and consumer electronics. The National e-Commerce Strategy 2024-2030 introduced a EUR 2.5 million E-commerce Grant Scheme, disbursing 320 grants by September 2025 to enhance merchant competitiveness. However, this pales in comparison to international investments like Zalando's EUR 1.2 billion logistics automation. Maltese merchants increasingly adopt platform-as-a-service models, leveraging tools like Stripe, Adyen, and Meta Ads to reduce time-to-market for new products from 6 months to 4 weeks, though customer acquisition costs rise to EUR 18 per new customer. Regional disparities persist, with Gozo's ferry-dependent logistics adding 90 to 120 minutes to delivery cycles and EUR 8 to EUR 12 per-parcel surcharges, limiting same-day fulfillment capabilities.