Europe embraces contactless POS payments, with digital wallets and debit cards leading the way
Digital wallets and other contactless point-of-sale (POS) payment methods are gaining popularity as cash usage declines
According to this report, consumers worldwide are gradually returning to in-store purchases but continue to prefer digital payment options when paying offline. As of April 2022, 52% of consumers chose to pay less with cash, and 36% opted for contactless payment methods. To meet this changing demand, sellers and merchants are shifting away from traditional POS systems and embracing advanced technologies like smart POS, soft POS, and mPOS. Among these options, debit cards have emerged as the preferred POS payment method, with more than half of merchants considering them essential due to their security benefits and convenience.
Europe witnesses a significant growth in the usage of contactless credit and debit cards
In Europe, although cash remains dominant, there has been significant growth in the usage of contactless credit and debit cards. In 2022, over 60% of card payment transactions at POS were contactless. Leading the way in this trend are countries like Finland, Netherlands, Belgium, and Luxembourg, where the share of card payments at POS is notably high. While cash is still preferred by 59% of surveyed respondents for in-store transactions in Europe as of June 2022, alternative POS payment methods like QR code payments, digital wallets, and payments via loyalty programs are gaining traction. For instance, Klarna's new loyalty card feature allows users to store their loyalty cards digitally in their app, streamlining the payment process and enhancing the customer experience. In the UK, debit cards and cash are the top two most used POS payment methods as of April 2022, with almost half of shoppers preferring to pay with cash. However, proximity mobile payments in the UK are expected to see significant growth, with an estimated 16 million proximity mobile payment users projected by 2026. Germany has also experienced significant growth in contactless physical card usage at POS, accounting for almost three quarters of all card payment transactions as of 2022. The Giro card dominates the POS payment landscape, representing 42% of all card payments used at POS, followed by credit cards at 6%.
1. What percentage of global decision-makers plan to deploy mobile POS technology for in-store shopping by 2027?
2. What is the forecasted total volume of global soft POS by 2027?
3. What is the current progress of contactless payment at POS in Europe?
4. What percentage of UK respondents used retailer mobile apps to pay via Apple Pay or Google Pay as of February 2023?
5. What is the forecasted number of P2P mobile payment users in France by 2026?
Table of Contents
1. Management Summary
2. Global
- POS Methods Overview and Trends, June 2023 (1 of 4)
- POS Methods Overview and Trends, June 2023 (2 of 4)
- POS Methods Overview and Trends, June 2023 (3 of 4)
- POS Methods Overview and Trends, June 2023 (4 of 4)
- Overview of Sustainability Initiatives by Payment Providers, June 2023 (1 of 2)
- Overview of Sustainability Initiatives by Payment Providers, June 2023 (2 of 2)
- Overview of Enhanced Security Measures at POS, June 2023 (1 of 2)
- Overview of Enhanced Security Measures at POS, June 2023 (2 of 2)
- Share of Retail Sales Growth vs Retail E-Commerce Sales Growth, in % Change, 2022-2026f
- In-Store Shopping Attributes That Respondents Find Appealing, in % of Respondents, 2022
- Top Changes in Payment Habits, in % of Respondents, April 2022
- Preferred Payment Methods For In-Person Transactions, in % of Respondents, April 2022
- Share of Shoppers Using Self-Checkouts During In-Store Purchases, in % of Respondents, July 2022
- Share of Shoppers Using Mobile Cashless Payments During In-Store Purchases, in % of Respondents, July 2022
- Top Technology That Decision Makers Are Likely to Implement In-Store Shopping, in % of Decision Makers, 2023e & 2027f
- Top In-Store Activities For Which Consumers Use Retailer’s Mobile App, in % of Respondents, 2022 vs 2023
- Total Volume of Soft POS, in billions, 2022 & 2027f
- Top In-Store Shopping Features Consumers Expect to See, in % of Retail Executives, June 2022
- Share of Consumers Using Mobile Wallets For Payments, in %, August 2022
- Share of Retailers That Intend to Implement the Select Payment Strategies Through Third-Party Providers, in %, June 2022
3. Europe
3.1. Regional
- POS Methods Overview and Trends, June 2023 (1 of 2)
- POS Methods Overview and Trends, June 2023 (2 of 2)
- Top Payment Methods Used at Point of Sale, in % of Transactions, June 2022
- Frequency of Using Cash at Physical Point of Sales, in % of Respondents, June 2022
- Share of Payment Instruments Used at POS In Terms of Value, by Country, in % of Value of Transaction, June 2022 (1 of 2)
- Share of Payment Instruments Used at POS In Terms of Value, by Country, in % of Value of Transaction, June 2022 (2 of 2)
- Preferred Payment Instrument at Point of Sale, by Country, June 2022 (1 of 2)
- Preferred Payment Instrument at Point of Sale, by Country, June 2022 (2 of 2)
3.2. UK
- Type of POS Payment Methods Used in the Past Month vs Those That Were Preferred, in % of Shoppers, April 2022
- Share of Respondents Who Have Several Loyalty Cards vs Those Who Have One Loyalty Card, in %, May 2022
- Number of Proximity Mobile Payment Users, in millions, and Penetration, in % of Smartphone Users, 2022-2026f
- Top Activities For Which Consumers Use Retailer’s Mobile App, in % of Respondents, February 2023
3.3. Germany
- Breakdown of Transactions Made via Physical, Contactless and Mobile Payments, in %, 2022
- Breakdown of Payment Methods Used in Store-Based Retail Sales, in %, 2022
- Share of Cards Used Within Card Payments in Store-based Retail Sales, in % of Card Payments, 2022
- Preferred Payment Method at POS, by Generation, in % of Respondents, June 2022
- Top 5 Criteria That Respondents Consider to Select the Right Payment Method at Checkout, in % of Respondents, June 2022
- Preferred Payment Methods in Retail Shops in the Next 5 Years, in % of Respondents, 2022
- Top Functionalities That a POS Payment Method Should Have, in % of Respondents, 2022
- Share of Respondents Willing Direct Credit of Bonus Points at Retailers vs Those Who Use Loyalty Points as Payment at POS, in %, 2022
3.4. France
- Number of P2P Mobile Payment Users, in millions, and Share of Population Using P2P Payment, in % of Population, 2022-2026f
- Type of POS Payment Methods Used in the Past Month vs Those That Were Preferred, in % of Shoppers, April 2022
- Share of POS Transactions Made in Cash vs Those That Were Made by Cards, in %, 2022
- Share of Respondents Who Were Willing to Use Contactless Payment Method vs Merchants Who Offered Contactless Payments, in %, September 2022
- Banking Services That Respondents Are Aware vs Confident About, incl. ”POS Payment Methods”, in % of Respondents, December 2022
3.5. Netherlands
- Preferred Payment Method Among Respondents Who Prefer Cash vs Those Who Prefer Debit Card at POS, in % of Purchases, December 2022
- Share of Preferred POS Payment Method, by Place of Purchase, in %, December 2022
- Share of Preferred Payment Methods at POS, by Gender, in %, December 2022
- Share of Preferred Payment Methods at POS, by Generation, in %, December 2022
3.6. Russia
- Share of Cash vs Cashless Payments For Goods and Services in Retail Turnover, in %, 2020-2022
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Adyen
- Alipay
- American Express
- Apple
- Bancomat Pay
- Cash App
- Curve
- Danske Bank
- Europay
- Getnet
- Klarna
- MangoPay
- Mastercard
- Milkywire
- PayPal
- Pivo
- Quicko
- Samsung
- Satispay
- Square
- Tappy Technologies
- Vipps
- VISA
- WeChat Pay
