Digital Payments in Europe Set for Transformation in 2025: Smartphone Penetration, Contactless Adoption, and Digital Wallets Lead the Way

yStats.com has released its latest report, “Digital Payments in Europe 2025: Regional Trends, Adoption, and Forecasts to 2028,” providing an in-depth analysis of the European digital payment market. The report highlights key trends shaping the market, including the shift from traditional to digital payments driven by smartphone penetration, contactless adoption, and the rise of global and local digital wallets. It also explores the adoption of emerging methods like Pay by Bank and stablecoins.

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E-Commerce and Digital Wallet Adoption Drive Payment Innovation

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In 2024, digital payments in Europe reached significant adoption levels, with over 60% of consumers utilizing online payment methods and over 25% adopting in-store digital payments. The rise of contactless payment options, increasing smartphone penetration, and the adoption of global digital wallets have fueled this growth. Global wallets remained the preferred choice for online transactions, while OEM wallets led in-store payments. This trend highlights the growing consumer preference for streamlined, secure digital payment solutions.

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Non-Cash Transactions Surge as Instant Payments Gain Momentum

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The volume of non-cash transactions in Europe is expected to grow at CAGR of over 10% from 2023, surpassing 630 billion transactions by 2028. In the B2B segment, non-cash transactions are projected to total nearly 90 billion transactions by 2028. While traditional card payments remain dominant, representing over 60% of transaction volume in 2023, instant payments have gained traction. This growth reflects the increasing demand for real-time, seamless payments among consumers and businesses alike.

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Crypto and Stablecoins: A Growing Presence in Digital Transactions

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Stablecoins such as USDT and USDC are gaining momentum in Europe, driven by their price stability and adoption in cross-border transactions. In 2024, stablecoin payments below USD 1 million grew 2.5 times faster than in North America. The region also saw a surge in cryptocurrency ownership, with nearly 50 million individuals holding digital assets. This trend highlights the growing appeal of stablecoins for consistent value and the integration of crypto payments in E-Commerce platforms.

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Access the Full Report

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Unlock deeper insights into Europe's evolving digital payments landscape by accessing the full report, 'Digital Payments in Europe 2025: Regional Trends, Adoption, and Forecasts to 2028.' For media inquiries, contact Press@ystats.com.

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