Mobile payments are revolutionizing how we shop, but which countries are leading the charge with their phones and smartwatches? It's a fascinating shift, as technology reshapes our daily routines, especially when it comes to making purchases. Across Europe, the use of mobile payments is surging, with more and more people opting to pay with their smartphones and smartwatches.
In 2024, a significant 6% of all point-of-sale (POS) payments within the euro area were made via mobile apps, representing 7% of the total value of transactions. This is a dramatic increase from 2019, when both figures were a mere 1%, according to the European Central Bank (ECB). This includes payments made with mobile phones, smartwatches, fitness bands, or other smart devices, all processed through digital wallets or other mobile apps.
But here's where it gets interesting: the speed of this transformation varies significantly across different countries. In the euro area in 2024, 75% of daily payments still occurred at the POS, meaning in-person payment terminals. Around 21% were online, and 4% were person-to-person (P2P) payments, like sending money to a friend. When looking at the value of payments, 58% of daily transactions happened at the POS, 36% online, and 6% were P2P payments, as revealed by the ECB's SPACE survey.
And this is the part most people miss: While mobile payments are growing, the old ways still hold strong. Cash remains the most frequently used payment method, accounting for 52% of transactions, although it only represents 39% of the total value. Cards are used in 39% of transactions, but they account for a higher 45% of the total value, suggesting they're preferred for larger purchases. Mobile payments account for 6% of transactions and 7% of the total value.
The Netherlands: The Mobile Payment Champion
Among the 20 countries in the euro area, the Netherlands stands out as a leader in digital payment adoption. A spokesperson from the Dutch Central Bank (DNB) noted the high adoption rates of digital payment methods, like contactless payments with debit cards or smartphones. Dutch consumers find these methods faster and more convenient than cash or traditional debit cards.
At the POS, mobile payments are used in nearly one in five (19%) transactions in the Netherlands. Ireland and Finland also show high adoption rates, with 10% shares. Slovenia, Croatia, and Belgium have the lowest shares, with only 3% of transactions using smart devices. Among the EU's 'Big Four' economies, Spain (7%) is the only country above the euro area average. Germany matches the average at 6%, while France and Italy fall below.
In terms of payment value, the Netherlands leads with a 17% share, followed by Spain at 12%. Croatia, Belgium, Portugal, and Austria record the lowest mobile payment value shares.
Is it the future of payments?
Digital literacy, along with perceptions of speed and ease, greatly influence the adoption of mobile payments. For those who prefer paying with smart devices, carrying cash or a card may feel outdated. However, the report also highlights that security concerns, such as fears of hacking (28%) or fraud (27%), are significant barriers for non-users.
What do you think? Are you a fan of mobile payments, or do you prefer traditional methods? Do security concerns hold you back? Share your thoughts in the comments below!
