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Published on 17/03/2025
New European payment trends: Developments and challenges
Rapid development in payment methods in Europe
The use of bank cards in Europe is set to decline significantly by 2027 in favour of digital wallets and local solutions. Consumers are now looking for faster, easier and more secure payment methods.
Digital wallets such as XPay, PayPal, WERO and Click-To-Pay are becoming indispensable solutions for both online payments and in-store transactions. This trend can be explained by several factors:
- Ease of use: a fluid, intuitive experience, that does not require bank details to be entered every time a purchase is made.
- Enhanced security: integrated strong authentication protocols (biometrics, double-checking).
- Instant payment: transaction approved in a few seconds, reducing the risk of shopping basket abandonment.
Breakdown of payment methods by country
Each European country has its own distinct preferences when it comes to payment methods, with well-established local networks. For online merchants, adapting their payment offering to specific national requirements is essential to maximising conversion and customer satisfaction.
- Belgium Bancontact dominates the market with 83% of transactions carried out using this solution(1).
- Germany Girocard accounts for 76% of payments(1), a figure reinforced by the growing adoption of SEPA direct debits.
- Italy Bancomat is the preferred option for 37% of consumers(1) .
- Netherlands: iDeal captures 70% of online payments(1), thanks to its seamless integration into local banking services.
- France: bank cards remain dominant, but alternative solutions such as WERO are gaining ground, supported by governmental initiatives that favour sovereign payments.
The rise of instant payment and regulatory support
Open banking(2) and regulatory innovation are promoting the emergence of new payment solutions. The European Central Bank (ECB) is encouraging the adoption of instant transfers, which allow funds to be transferred immediately between banks without any processing time.
This payment method is a credible alternative to bank cards and digital wallets and brings the following benefits to both consumers and merchants:
- Reduced costs: transaction fees associated with cards are eliminated.
- Greater security: risk of fraud reduced thanks to enhanced authentication.
- Optimised experience: payment in real time, with no delay.
Towards a more diversified and competitive payment landscape
The rise of local solutions and digital wallets is reshaping the European payment market. This transition requires e-commerce executives and customer experience managers to adapt their strategies by integrating varied and secure payment services.
The adoption of solutions tailored to local settings, combined with the optimisation of payment processes, is becoming a key competitive lever. By anticipating these developments, companies will not only be able to meet consumer expectations but also strengthen their position in a rapidly changing market.
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