Financial Cards and Payments in Western Europe

February 2024

Total transactions value growth slowed in Western Europe in 2023, with many consumers’ spending impacted by the still high inflation rates. Paper payments remained in decline, with electronic direct/ACH payments continuing to grow. Card payment transactions also continued to record positive growth, but at a much more modest rate. M-commerce continued to outperform the overall market, which is expected to continue over the forecast period.

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Key findings

Debit the leading type of card for Western Europeans

The regional performance was muted in 2022, with declines seen in a number countries, given the difficult economic backdrop, with high inflation rates putting pressure on households’ disposable incomes. Debit cards remain the most popular type of financial card, while m-commerce continues to record the most dynamic growth rates.

BNPL gaining in popularity in the region

Since the start of the pandemic, electronic payments have benefitted from the rising share of e-commerce in retail sales in Germany, giving emerging online payment players a growing platform. These include BNPL players such as the fintech Klarna, offering consumers an easy and convenient option to pay in instalments, often without an interest rate. The introduction by PayPal, the country’s leading online payment player, of a BNPL option will help further push this service into the mainstream.

Dynamic Turkish market, as financial inclusion grows

A rapid expansion of the banking population has turned Turkey into a breeding ground for financial innovation, with start-ups, fintechs and payment gateways setting up banking and payment tools in the country. This is being bolstered by the alignment of Turkish regulations with the EU’s Payment Service Directive 2, which is designed to encourage cross-collaboration in payments and provide a better-integrated infrastructure for electronic payments.

UK consumers keen on contactless payments

Tech-savvy local consumers in the UK are increasingly favouring the use of contactless technologies, which was given further impetus during the pandemic. The increase in the number of contactless smart cards being issued, the development of the payment infrastructure and the contactless limit reaching GBP100 per transaction in the UK, which is higher than the average EUR50 in other European markets, are helping to facilitate the expansion and quick adoption of contactless payment methods.

Scope
Key findings
Lack of dynamism in the Western European card payment transactions market
Growth rate dips in 2023 with consumers hit by cost-of-living crisis
Western Europe’s personal payment transactions value is in decline in 2023
High inflation rates impacting consumer spending power in 2023
Germany the clear leader in electronic direct/ACH transactions in the region
Debit cards dominate card spending in Western Europe
Proximity payments more dynamic but remote payments still lead m-commerce
Personal paper payment transactions decline in all countries in the region
Store cards quietly fading away in most Western European countries
Personal card payment transactions add the most new value in 2018-2023
Debit cards dominate card payment transactions value in Western Europe
Extremely concentrated card operators competitive landscape
Mastercard taking share from Visa in the UK
Visa and Mastercard present across the region
Mastercard and Visa look to break the dominance of CB in French debit cards
Positive growth expected for card payment transactions throughout 2023-2028
Debit cards will continue to lead, store cards will remain in decline
Personal paper payment transactions will continue declining
Growth expected for personal card and electronic direct/ACH payment transactions
Continued growth expected for m-commerce in Western Europe over 2023-2028
Proximity will continue to be more dynamic, but remote payments will continue to lead
Austria: Market Context
Austria: Card Payments and Competitive Landscape
Austria: Consumer Payments and M-commerce
Denmark: Market Context
Denmark: Card Payments and Competitive Landscape
Denmark: Consumer Payments and M-commerce
France: Market Context
France: Card Payments and Competitive Landscape
France: Consumer Payments and M-commerce
Germany: Market Context
Germany: Card Payments and Competitive Landscape
Germany: Consumer Payments and M-commerce
Greece: Market Context
Greece: Card Payments and Competitive Landscape
Greece: Consumer Payments and M-commerce
Italy: Market Context
Italy: Card Payments and Competitive Landscape
Italy: Consumer Payments and M-commerce
Netherlands: Market Context
Netherlands: Card Payments and Competitive Landscape
Netherlands: Consumer Payments and M-commerce
Norway: Market Context
Norway: Card Payments and Competitive Landscape
Norway: Consumer Payments and M-commerce
Portugal: Market Context
Portugal: Card Payments and Competitive Landscape
Portugal: Consumer Payments and M-commerce
Spain: Market Context
Spain: Card Payments and Competitive Landscape
Spain: Consumer Payments and M-commerce
Sweden: Market Context
Sweden: Card Payments and Competitive Landscape
Sweden: Consumer Payments and M-commerce
Turkey: Market Context
Turkey: Card Payments and Competitive Landscape
Turkey: Consumer Payments and M-commerce
UK: Market Context
UK: Card Payments and Competitive Landscape
UK: Consumer Payments and M-commerce

Payments and Lending

This is the aggregation of Financial Cards and Payments, Mobile Payments, Transactions, and Consumer Lending.

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