The payments industry has broken new ground in the past few years, with many evolving technologies that influence the way consumers pay. Alternative payment methods (APMs) – namely, any payment option that doesn’t include cash or an international major payment card scheme – are gaining traction with no signs of slowing down.
In fact, data from Statista highlights that APMs such as bank transfers were one of the most preferred payment methods for eCommerce shopping in Q1 2021, with the highest consumer reach recorded in Poland (36.9%). A report by Statista from 2021 uncovers that direct debits are also thriving in Europe. France has the highest user adoption, given that transactions made with this payment option reached an astonishing 4.6 billion. Prepaid cards are especially prevalent in Spain. In fact, projections want the prepaid card market’s CAGR to amount to 10.1%, rising from $11.27 billion in 2022 to US$16.55 billion by 2026.
In this article, we dive into the top APM brands in Europe that can help you find the right payment option for your business and target customers’ needs.
Bancontact
Bancontact is Belgium’s most prevalent payment solution for online, in-store and in-app payments. With a record-breaking debit card circulation of 15 million and a coverage of various industries including all major Belgian banks, this payment scheme will benefit merchants adding Bancontact into their payment mix.
EPS
EPS (eps-Überweisung) is an Austrian-based popular and trusted online bank transfer payment solution. With three million engaged Austrian cardholders and more than 1,000 online stores offering it, EPS is no doubt the payment solution of choice for efficient cross-border payment processing.
Giropay
Giropay is a real-time bank transfer payment method for both online and mobile transactions that’s integrated into more than 1,500 German banks and engages merchants with over 45 million potential customers. Customers selecting Giropay at online checkout are redirected to their secure online banking environment, which testifies to its popularity and convenience.
PayU
Supporting 300 Polish and Czech banks while processing more than 10 million transactions daily, PayU is a must-have and safe bank transfer payment option for merchants targeting consumers in both regions. In 2021, PayU gave merchants access to one in two (48%) Polish consumers across multiple verticals, rendering itself a go-to solution for a seamless transaction journey.
Paysafecard
Paysafecard is a prepaid card or voucher that consumers need to purchase from over 650,000 sales outlets across more than 50 countries before performing a payment. With over 4,000 online stores accepting prepaid cards, Paysafecard is the ideal payment solution for customers who don't have a bank account or don't want to disclose their sensitive payment data during transaction processing.
Przelewy24
Przelewy24 (P24) is a reliable and well-known payment method in Poland that enables account-to-account transfers from the customer’s online banking. Covering over 365 banks on a global scale and boasting 91% of market recognisability, it’s no secret that P24 is the payment solution of choice for more than a quarter (35%) of Polish consumers.
SEPA Direct Debit
SEPA is a European Union (EU) initiative aimed for frictionless transactions across the Eurozone and trusted by more than 529 million European citizens as of 2021. SEPA Direct Debit is a payment scheme within SEPA that’s mainly used for recurring payments such as subscriptions – users just sign a mandate that grants the merchant authorisation to debit their bank account.
Sofort/Klarna
Sofort (or else Sofort/Pay) is a bank transfer payment method that allows consumers to make online purchases using their online banking data instead of inputting their card details. Such transactions are conducted monthly through over 35,000 online businesses. Merchants integrating Sofort/Pay into their business’ offering means reaching an ever-growing list of markets that support it across multiple industries.
Trustly
Trustly is a widely used bank transfer payment option that has attracted over 525 million consumers throughout Europe and North America. As of 2021, 29 markets are served across the European region. As this payment method offers multiple opportunities for entering core markets within the EU and the EEA, merchants can accelerate their business growth by providing their customer's payment method of choice.
Read our latest blog on local payment methods and discover actionable insights for your business looking to localise your payment offering and engage new digital customers internationally. Alternatively, you can watch our video to learn what alternative payment methods are and they help increase brand loyalty.
In this article, we've explored the most popular payment methods in Europe. APMs are critical if you’re looking to access a new market or offer more options to your existing customers. This suggests that a payment service provider (PSP) with a global acquiring network and in-depth knowledge of your local target audience and their preferred payment methods can help meet changing consumer behaviour.
Our dedicated emerchantpay team is operating in every corner of the world and can support merchants across various industries in navigating the regional payment landscape for global expansion. We work with businesses of all sizes to enable them to accept payments online, in-store, and in-app. Our payment solutions are available via a simple integration, which also includes a plethora of other features, such as global acquiring, APMs, an in-house eWallet, card issuing, fraud and risk management and performance optimisation.
Get in touch with our payment experts on how you can break into new regions and integrate prevalent APMs into your payment system.
In an era marked by digitalisation, an evolving eCommerce and online payments landscape is redefining the way consumers shop and pay. Latin [Read more]
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