Alternative payment methods – what’s trending in Europe

Join us as we explore some of Europe's most popular alternative payment methods, from prepaid cards to direct debit and bank transfers.

In this article you will find

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 the European Central Bank reveals that non-cash payments in the euro area increased by 7.4% to 72.1 billion transactions in the first half of 2024, with credit transfers comprising 22% of these transactions.

Furthermore, 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%). Research from Statista also 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 in 2021. Prepaid cards are especially prevalent in Spain. In fact, projections want the prepaid card market’s CAGR to amount to 10.1%, rising from USD 11.27 billion in 2022 to USD 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.

Alternative Payment Methods (APMs) in Europe at a glance

Bancontact Bancontact remains Belgium's most prevalent payment solution for online, in-store and in-app payments. In 2023, it processed over 2.5 billion payments in Belgium, with a record-breaking debit card circulation of 15 million globally. Covering all major Belgian banks, Bancontact serves a broad range of industries, including travel, gambling, retail, general eCommerce and forex, benefiting merchants by integrating Bancontact into their payment mix.

EPS EPS (eps-Überweisung) is an Austrian-based popular and trusted online bank transfer payment solution. Offering online bank transfers in Germany means that German buyers can purchase from Austrian eCommerce and Austrian shoppers can buy from German merchants without having to choose a different payment option. With three million engaged Austrian cardholders and more than 1000 online stores offering it, EPS is no doubt the payment solution of choice for efficient cross-border payment processing. 

PayU PayU is a must-have bank transfer payment option for merchants targeting consumers in Poland and the Czech Republic. PayU processed nearly USD 1 billion in BNPL volumes and served over 2,500 merchants across multiple verticals such as gaming, travel, general eCommerce and retail. PayU supports 300 Polish and Czech banks rendering itself a go-to option for a safe and seamless transaction journey.  

Paysafecard Paysafecard is a prepaid card – powered by Mastercard – or voucher that consumers need to purchase from over 650,000 sales outlets across more than 50 countries before initiating a transaction. Paysafecard is the ideal payment solution for consumers who don't own a bank account or don't wish to disclose their personal or financial data when performing a transaction. In 2020, 176 million Paysafecard transactions were processed worldwide while thousands of online stores collect payments via prepaid cards, which testifies to its secure and smooth 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 a nation’s preferred payment solution by more than a quarter (35%) of Polish consumers.   

SEPA Direct Debit SEPA is a renowned European Union (EU) initiative aimed at frictionless transactions across the Eurozone. 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. All SEPA transactions are bank to bank which do not require any card schemes and was the payment method of choice for more than 529 million European citizens as of 2021.  

PayPal Pay in 3 Launched in 2020, PayPal's Pay in 3 is a widely trusted Buy Now, Pay Later (BNPL) solution that enables UK consumers to split purchases into three interest-free instalments. Available for transactions ranging from £30 to £2,000 at most online retailers accepting PayPal, this service has become a popular choice among shoppers seeking flexibility. With the BNPL market projected to reach 900 million users globally, integrating PayPal Pay in 3 can help merchants meet customer demand and stay competitive.

Expand your offering with APMs

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 cater to changing consumer behaviour.

Our dedicated emerchantpay team operates worldwide, supporting 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.

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