The COVID-19 pandemic has altered how people do business and how consumers pay for goods and services. As online sales increased, it became necessary to understand which payment methods customers preferred. Many businesses used the internet to reach customers during lockdowns. Payment trends have thus been boosted in recent times as businesses adapt to societal change.

​ Financial Services Are Changing Consumer Purchasing Habits
​
Customers are increasingly gaining access to payment features that are more user-friendly and quicker to use as financial services become more digital. For example, the Payment Services Directive Two, or PSD2, has significantly improved the purchasing experience of European customers. PSD2 aided businesses in adopting online banking tools, and it strengthened online shopping security. Businesses can now use third-party providers to provide secure banking services and convenience.

Some companies offer tools that can help businesses run efficiently, and the tools allow businesses to accept payments in different currencies from across Europe. This creates one financial system that has all major payments available in one place. E-commerce businesses no longer have to connect to each financial system separately or, in search of more options, connect with different acquirers.

​ Popular Payment Methods in Different European Countries

In Germany, open invoices remain the top payment method of choice followed by Visa, Mastercard, and cash in advance options. Digital wallets such as Giropay, paydirekt, Sofort, Apple Pay, and Girocard are common but not highly popular. Meanwhile, in Spain, the most popular payment method of choice is both debit and credit cards while digital wallets come in second. However, in France, online payment methods have dominated the payment world. Carte Bleue, France's national card, is at the top of the list of cards used for online payment followed by Visa and American Express. On the other hand, digital wallets aren't commonly used for e-commerce purchases.

For Italians, credit cards, debit cards, and digital wallets are currently at the top of the list of popular payment methods. In the Netherlands, iDeal, an online form of payment, is popular, with digital wallets and cards coming in second place. While in Romania, contactless cards uses have increased as cash payment decreased during the pandemic. Additionally, cash-on-delivery also remains popular.

In Finland, bank transfers, digital wallets, and cards are popular forms of payment among consumers. In Poland, bank transfers and cash-on-delivery payment use remains high with debit and credit card as well as digital wallets being less preferred by Polish consumers. Swedes prefer digital wallets, invoices, and cards for payment.

E-Commerce and the Overall Preferred Method of Payment

The pandemic has altered the way business is conducted online. Debit and credit cards continue to be the most popular payment methods in many European countries. As consumers adjust to living with the Covid-19 virus, e-commerce businesses are developing new, better, and safer methods for consumers to make online purchases.

Stay Tuned with Export Portal

Want to learn more updates in the business industry? Check out our site today!

#ExportPortal #paymentmethods #Europe #COVID-19 #paymenttrends