Europe Mobile Payments Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

Europe Mobile Payments Market Size & Share Analysis - Growth Trends & Forecasts (2023 - 2028)

The Europe Mobile Payments Market size is expected to grow from USD 84.60 billion in 2023 to USD 291.47 billion by 2028, at a CAGR of 28.07% during the forecast period (2023-2028).

Consumers shopping online increased significantly in Europe. According to a survey, mobile transactions contributed 50% of the total online sales in Europe. Digital wallets are the most preferred payment option, and nearly 44% of Europeans would rather pay using e-wallet apps. Merchants also favor digital wallets as they follow the Payment Services Directive rule (PSD2) that guarantees safe payments. Also, these are quick to set up and cost-effective.

Key Highlights

• Although global players like Apple Pay, Amazon Pay Google Wallet have a presence in the Europen Region, the natives prefer Paypal digital wallet service. In 2022, 90% of Europeans used PayPal services. Digitization is at its peak in Europe, and retailers and PSUs are adopting AI technologies to serve customers with easy and safe payment methods. Merchants are approaching payment service providers like Novalnet, who assist with payment plug-ins and AI-based risk management tools.
• The payments Market in Europe is adapting to innovation and technology post the introduction of The European Union's Second Payment Services Directive (PSD2). This will build customer trust in online payment methods and eliminate counterfeit trade.
• The surcharge that Merchant needs to pay while using these apps may refrain from its usage. For instance, Mastercard and Visa charge 1.5% of the transaction value for every online credit card payment from the UK to the European Union.
• Clauses defined by digital apps for merchants can also harness the growth of this sector. In Germany, sellers are prohibited from preferring payment methods other than PayPal. Merchants are also forbidden from offering their goods and services at lower prices if customers choose a less expensive payment method than PayPal.
• Covid-19 promoted financial inclusion, leading to a significant rise in digital payments. Payments made using contactless cards at the POS grew significantly. Purchasing food and other necessities from supermarkets and eateries was a typical usage of online payments. According to a survey, the share of online transactions in 2022 was 28%, i.e., twice the share in 2019 (14%).

Europe Mobile Payments Market Trends

E-commerce to Drive the Mobile Payments Market

• Mobile commerce is on the rise in Europe region as there is a rapid increase in consumers using their smartphones and tablets to purchase services and goods. It is predicted that m-commerce revenue will grow and reach 134.37 billion USD by 2024.
• In Germany, 44% of all domestic online transactions use digital wallets. Paypal has 83% contribution towards digital payments in the country. 20% of all in-store transactions in the country are made using mobile devices.
• The value of contactless payments spiked to 50% in 2022 for the United Kingdom. British consumers are the least mobile-centric nation compared to Australia, Brazil, Mexico, the UAE, the U.K., and the U.S.
• According to a study by Pymnts, 13.6% of Dutch consumers paid for their in-store purchases with mobile payment in Q3 2022, followed by Spain with 12.7% during the same period. Regarding online transactions, 19.2% of consumers in the Netherlands reported using a digital wallet for their eCommerce payment in the third quarter of the year, compared to Spain’s 29.3%.
• Based in Greece, DIAS SA joined The European Mobile Payment Systems Association. Becoming a member of the EMPSA partnership will benefit the Greek financial ecosystem in its business expansion. With more number of companies joining the association, European citizens will have the option to use the mobile payment solution of their choice across Europe.

Internet Penetration in the Europe is Driving the Market

• The growing adoption of digitalization in Europe is expected to propel growth. The Council of Europe partnered with Digital Companies to develop new projects for expanding internet services throughout Europe. Fight against cybercrime, data protection, and artificial intelligence are other topics discussed during Council of Europe activities.
• E.U. (European Union) launched Open Web Search Project to develop its web search engine. The netizens will get to access information freely, openly, and fairly. The initiative will establish a scalable and open European Open Web Search and Analysis Infrastructure framework. It will be built on European norms, laws, and guiding values. Once the Web service is available, companies and innovators can effectively leverage the web as a business and innovation resource.
• The market share of E.U. households with internet connectivity has increased to 93% as of 2022. 68% of E.U. citizens preferred using online services for purchasing goods.
• Greater availability of 5G smartphones and the rollout of 5G networks using low-band spectrum led to increased 5G adoption in the Europen Countries in 2022. Europe is home to more than 40% of all private networks globally, with a rising number of them employing 5G.

Europe Mobile Payments Industry Overview

The Europe Mobile Payment Market is highly competitive, and local startups are trying to disrupt the payment industry using the latest technology. Major global e-wallets like PayPal, Apple Pay, and Google Wallet have a solid European footprint. But many home-grown European startups have risen up fast to take on these global players.

• January 2022 - Adyen payments platforms rolled out POS terminals in UK and EU. The service was first used by Palisis, the tourism and transportation solutions firm, and Immfly, the in-flight digital services provider. After adopting these terminals, Palisis and Immfly customer experience was enhanced as it increased mobility, functionality, and convenience. Adyen's infrastructure connects directly to Visa, Mastercard, and consumers' preferred payment methods.
• December 2022 - Paypal collaborated with crypto wallet MetaMask. The partnership will elevate PayPal to the next level, enabling a quicker and more effective cryptocurrency buying experience.
• July 2022 - Revolut partnered with Stripe for payment processing in UK and Europe. The partnership will help Revolut improve its payments business as it plans to expand across nationwide and internationally. It is already present in 10 European countries and introduced its app in Srilanka.
• May 2022 - The Big Issue Group (TBIG) launched Tap to Pay systems at the vendor's outlets with the help of Zettle by Paypal card reader. This will allow retailers to directly accept contactless in-person payments using their Android mobile devices without additional hardware or fees. TBIG has plans to transit all 1500 vendors toward the cashless option.

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• The market estimate (ME) sheet in Excel format
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