A new report highlights the trends in the European online payments market. The report, entitled Europe Online Payment Methods 2019, reveals that payments to European E-Commerce platforms are still dominated by digital wallets and credit cards.
Credit or debit cards and PayPal were the top two payment methods accounting for nearly three-quarters of E-Commerce sales in Europe in 2018, according to recent data cited in the report. However, there was also a significant variance in online shoppers' preference for payment methods by country. In the Netherlands, for example, online banking method iDEAL beat both digital wallets and cards in terms of usage in E-Commerce and in Poland, local fast transfer services such as PayU and Prezelewy24 were in the lead.
Although Europe lags behind other global regions, such as Asia-Pacific, in terms of mobile payment adoption, the use of payments on smartphones, tablets and wearables is rising, as the report shows. Scandinavian nations and the UK are among the leaders of this trend, especially when it comes to making mobile payments in-store. Also, consumers in emerging economies across Europe show interest in mobile wallets. In Russia, the use of Google Pay, Apple Pay and Samsung Pay by connected consumers is already in the double-digits.
Overall, surveys cited in the report indicate that digital buyers across Europe want online sellers to offer a variety of payment methods at the checkout. More than one in five online shoppers in France are more likely to visit an online store that supports alternative payment methods to credit cards. Additionally, three-quarters of UK buyers prefer E-Commerce websites with a range of payment options. At the same time, shoppers are wary of the safety of their payment details on the Internet. A double-digit share of online buyers in Spain value security over both the speed and comfort of the payment process, and more than 50% of shoppers in Sweden try to avoid entering card details on E-Commerce sites.
European shoppers' preferred method of online payment varies
The two most popular payment methods in Europe were PayPal and credit or debit cards, according to a statistic cited in the report, making up a vast majority of 2018 E-Commerce sales in Europe. Country-specific alternative payment methods act against this trend in both the Netherlands and Poland among others.
The growth of mobile payments
Smartphones, wearables, and tablets are rising form of mobile payment in Europe, notwithstanding that the region falls behind Asia-Pacific, as quoted in the report. The leaders in this trend include the UK and the Scandinavian countries, particularly in the case of in-store mobile payments.
Security and variety are valued among online shoppers
Surveys referenced in the report deduce that across Europe, online shoppers want E-Commerce platforms' checkout to have an assortment of payment methods. Alternative payment methods mark especial significance in France, with nearly a quarter of online shoppers listing it as a reason to visit a specific online shop.
Questions Answered in this Report
Which payment methods are preferred by online shoppers in Europe?
What are the acceptance rates of different payment methods in European online stores?
What are the key trends in digital payments in this region and worldwide?
How is the use of mobile wallets evolving in Europe?
What features do European shoppers value the most in online payment methods?