Fastest-growing payment methods in Europe

Digital payments in Europe are constantly evolving, keeping pace with new technologies and regulations. Popular options now extend far beyond traditional solutions. So-called alternative payment methods (APMs), such as Pay by Bank, can easily become the new standard in the near future.

Let’s take a closer look at what the future holds for European online transactions.

The European payment landscape today

In the EU, card payments are still one of the most popular options for online shopping. At the same time, most countries have local APMs that are in high demand for domestic transactions. Usually, they work on the account-to-account (A2A) payment model, enabling instant transfers between accounts. Because of their speed and convenience, local customers often prefer such payment methods over cards.

For instance, the Netherlands is the leader in adopting APMs. Its iDEAL handles around 70% of all transactions in the country. Other examples include Spain's Bizum or the mobile wallets of the Nordics – such as Swish, Vipps and MobilePay.

The fastest-growing payment methods

Here is what shapes the future direction of the European e-commerce:

Instant bank transfers

Thanks to new EU regulations, instant transfers are booming. These systems allow money to move directly from a customer’s bank account to a merchant’s in under 10 seconds. They cut out expensive card networks entirely, making instant bank transfers a major win for speed and security.

Digital wallets

Apple Pay and Google Pay have become mainstream thanks to the ease of use. They allow customers to authorise online transactions with a quick facial scan or fingerprint. By eliminating manual entry of card numbers, digital wallets speed up checkout and improve conversion rates. In the future, integration with voice assistants can make these payments even more seamless.

Buy Now, Pay Later (BNPL)

BNPL services like Klarna remain a major trend, especially for Millennials and Gen Zs. They allow customers to split big purchases into smaller payments, making shopping more budget-friendly. Users can also pay by invoice after their goods arrive, giving them total confidence in the product’s quality. This helps boost sales, particularly in fashion and electronics.

What’s next for European payments?

Right now, Europe is working to unify its fragmented payment landscape. First, the European Central Bank is moving forward with plans for a Digital Euro. This online currency aims to give everyone in the Eurozone a single, safe, and cheap way to pay online.

At the same time, technology keeps moving forward. We are already going beyond voice assistants that just add items to a shopping list. The next generation of artificial intelligence, called “Agentic AI”, can independently find and select goods and make digital payments after the user’s authorisation.

Join the future of e-commerce with Payop’s Pay by Bank

Offering the payment methods your customers prefer is key to boosting sales. To keep you competitive in the fast-paced e-commerce market, Payop created its own Pay by Bank solution.

The advantages of this payment option are:

• Speed. Pay by Bank cuts out card intermediaries, enabling near-instant transaction processing. Receiving funds immediately allows you to optimise business operations, while customers gain faster payment confirmation and quicker order fulfilment.

• Convenience. Open banking technology lets payers authorise transactions directly within their familiar banking app. This streamlines the checkout process, making it almost invisible to users.

• Security. Pay by Bank eliminates the need to manually enter card details, adding a layer of security to digital transactions. Even if a data breach happens, your customers’ sensitive information remains safe because it was never exposed.

• Better conversion. Safe transactions, faster checkout, and a trusted banking environment – all these factors lead to higher customer satisfaction. It helps minimise cart abandonment and keep high conversion rates.

By partnering with Payop, you gain access to this and other Pay by Bank solutions, including Pay by Monzo and Pay by Revolut. Plus, you will always stay fully compliant with all rules and regulations in Europe and beyond. This is what builds a strong foundation for growing your business internationally.

Contact us at sales@payop.com to learn more.