The latest publication from Hamburg-based desk research company yStats.com titled “Western Europe Online Payment Methods 2022” 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 yStats.com 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 yStats.com 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 yStats.com 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.