Online Payment Methods Followed An Upward Trend in Western Europe Amid Covid-19
This publication provides insight into the online payment market in the Western European region, through key figures, forecasts, and trends.
Payment method preferences vary across the region
Online payment methods have come to fruition in Western Europe with debit/credit cards and PayPal being preferred for B2C e-Commerce purchases in many countries of the region. There is, however, some variation in online payment usage and preference across the countries. For example, invoice is a popular payment method in Germany and Sweden, whereas in Denmark online shoppers often chose to pay via bank. Payment security, along with convenience and speed are the top factors affecting the usage of different online payment methods in Western Europe, according to surveys referenced in the report.
PayPal has a significant presence in Western Europe
PayPal has strong positions in the Western European online payment market. In Germany, it accounts for a nearly equal market share as invoice, and ranks among the top 3 online payment methods in most other markets. In the UK, PayPal is growing its market presence with the new Buy Now Pay Later (BNPL) service “PayPal Credit”. Overall, BNPL is a major payment trend that is gaining traction in Western Europe and worldwide, the report reveals.
Local online payment providers are widely used in some Western European countries
Despite the dominance of cards and PayPal, there are several major local payment methods that have significant market shares in a number of Western European markets, as shown in the report. These include iDEAL in the Netherlands, with a high double-digit share of B2C e-Commerce sales in 2021. Another example is a mobile payment application Vipps in Norway, ranked second after cards in terms of usage by online shoppers. Local card and interbank schemes such as Bancontact/ Payconiq in Belgium and Multibanco in Portugal are also among the top online payment methods used in these countries.
Questions Covered in the Report
- What are the leading payment methods used by online shoppers in Western Europe?
- How do online payment preferences differ across the countries in this region?
- How does the payment process affect shopping cart abandonment in France?
- What are the most popular local online and mobile payment methods in Belgium, Norway, and Portugal?
- How does the mobile payment acceptance and usage evolve across Western Europe?
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Executive Summary
This publication provides insight into the current state and future trends of the online payment market in the nations in Western Europe. Among other findings, the publication reveals that close to two-thirds of consumers in Europe would support mandatory acceptance of digital payments.
Cards and PayPal are the leading online payment methods in most of Western Europe
Debit or credit cards and PayPal were the most preferred methods of payment in B2C e-Commerce in most Western European countries including the UK, France, Spain, Italy, and others. In Germany, PayPal is now almost as strong as payment by invoice, traditionally a leading payment method by share of B2C e-Commerce sales. In addition to cards and PayPal, there are several local payment services that occupy top positions in their respective markets. These include iDEAL in the Netherlands, Vipps in Norway, and Multibanco in Portugal.
Mobile payment usage rises in Western European countries
Mobile wallets are projected to see significant growth in Western Europe through 2026. In Italy, for example, the value of proximity mobile payments doubled over the past year. The mobile payment trend is driven by the convenience and security of these payment solutions, especially with proliferation of biometric authentication. A survey cited in this report reveals that close to two-thirds of respondents in the UK felt safer using their mobile phones when compared to physical wallets. Mobile payment apps are also gaining popularity in B2C e-Commerce, in the Netherlands and Norway, among other countries.
Companies Mentioned (Partial List)
A selection of companies mentioned in this report includes, but is not limited to:
- Amazon Pay
- American Express
- Argos Store Card
- Clearpay
- Klarna
- Laybuy
- Legal & General
- Maestro
- MasterCard
- Payl8r
- Paypal
- PayPoint
- Revolut
- Scottish Widows
- Similar
- Zip
- Zlich
- Openpay
