A newly released report by Hamburg-based secondary research organization yStats.com: “Europe Online Payment Methods: First Half 2014“, reveals that alternate payment methods are growing at a fast pace, but credit cards still dominate the payments landscape in online shopping. In keeping with the diversity of the continent, there is wide variance in preferred payment methods across the region.
Cards account for the largest share of B2C E-Commerce transactions in Europe, while digital wallets are in second place. European Union legislators are working on improving the electronic payments regulations considering such issues as security. In Germany, invoice remains the leading payment method in online shopping, perceived as both the most secure and most convenient method. But other methods, such as credit card and digital wallets, are on the rise. In Austria, the leading method both in M-Commerce and B2C E-Commerce was credit card, while online shoppers in Switzerland most used invoice in online shopping and credit card in mobile shopping.
Online payment is the largest contributor to card payment growth in the UK, with annual growth of over 10%. The use of contactless cards in on the rise: in early 2014, the monthly value of payments by contactless cards in the UK exceeded a hundred GBP 100 million for the first time. In France, credit card remains the most preferred payment method in B2C E-Commerce, followed by PayPal and similar services. The year-on-year growth of online credit card payments in France slowed to a single-digit percentage in early 2014. Online card spending in Italy was growing year-on-year in every month of 2013, while in Spain, the two payment methods most used in online shopping in 2013 were Bank Credit Card and PayPal.
Credit card was the most preferred payment method in both B2C E-Commerce and M-Commerce in Sweden, though the share of online shoppers there preferring credit card decreased between 2012 and 2013. Card use dominated payments in Denmark and Norway also in both B2C E-Commerce and M-Commerce, while in Finland online bank transfer was ahead of cards.
Cash on delivery remains the dominant payment method in online shopping in Russia, though use of credit cards and alternative payment is on the rise there. More than half of online shoppers prefer to pay on delivery with cash, but a growing number now reaching nearly a quarter of shoppers prefers to pay with card either online or upon delivery. Cash on delivery is also the most use method of payment in the Czech Republic. Online shoppers in Turkey predominately use a credit card for purchases. E-Commerce transaction with cards in Turkey reached a value of over EUR 10 billion. Also in Estonia B2C E-Commerce transactions with bank cards are significant, with cross-border transactions by far outweighing the domestic ones.