Countries Covered: UK, Germany, France, Spain, Italy, Netherlands, Switzerland, Sweden, Belgium, Norway, Denmark, Finland, Austria, Russia, Poland, Turkey, Portugal, Hungary, Ukraine, Bulgaria, Croatia.
Publication Date: 28/09/2023
Questions Covered in the Report:
- What is the forecasted value of digital wallet transactions globally by 2028?
- What is the number of cashless payment users in Europe as of 2023?
- What is the forecasted number of proximity mobile payment users in the UK in 2026?
- What was the number and value of contactless mobile transactions in Turkey as of Q1 2023?
Cashless payment users in Europe surpass the 700 million mark as of 2023: new yStats.com report.
Digital wallets witness growth in usage and adoption at varying growth rates across Europe
With consumers shifting towards online shopping, digital wallets have firmly established themselves as a preferred online payment method in Europe, with 54% of respondents using them at least five times a month, as of September 2022. This growing preference can be attributed to the shift toward digital payments, the demand for seamless cross-border transactions, and the introduction of the European Digital Identity Wallet. International players like Apple Pay, Google Pay, and Samsung Pay enjoy widespread adoption, but local alternatives such as iDEAL in the Netherlands, PayPal in Germany, and YooMoney and QIWI in Russia are also making waves. In the UK, credit cards remain dominant, while Belgium leans toward Bancontact as its national payment method. The report highlights PayPal’s popularity across Spain, Germany, and France, cementing its status as the preferred digital wallet in Europe. With cashless payment users surpassing 700 million as of 2023, the growth of digital wallets is set to continue shaping Europe’s online payment landscape.
Despite the increasing prominence of digital wallets, Europe’s payment landscape remains diverse, with different countries showcasing varying adoption rates for online payment methods. In the Netherlands, iDEAL reigns supreme, accounting for 70% of online purchases as of April 2023, followed by credit cards at 8%. Hungary has also seen significant progress, with an estimated 80% of online stores offering payment card and e-wallet solutions like Apple Pay and Simple Pay in 2023.
Security concerns have prompted payment providers to use biometric authentication for payments
With the increasing prevalence of online payments, the challenges related to data privacy and security are on the rise. Furthermore, as of April 2023, over half of the surveyed consumers expressed discomfort in sharing their financial data for online payments, according to the latest publication from yStats.com. In countries like Germany, security and privacy emerged as top considerations for the majority of respondents when choosing a payment method. Additionally, in France, more than three-quarters of respondents agreed that the protection of privacy and data is a crucial factor during the checkout process. In response to this evolving landscape, payment authorities are actively exploring biometric authentication methods such as fingerprint, iris recognition, and voice recognition, among others, to enhance payment security, thus adding an extra layer of protection. Furthermore, it is likely that the future will witness the widespread use of digital IDs and virtual cards, further enhancing the safety and security of digital payments.