Payment behavior: Europe is becoming more digital, mobile and strategically independent
Europe's payment transactions are becoming faster, more digital and more secure: contactless card payments remain dominant, while mobile payments are becoming more important, particularly among younger user groups. At the same time, real-time transfers are becoming increasingly established in everyday life. In addition to strong national solutions such as TWINT, awareness of European initiatives is also increasing - a sign of the growing demand for digital sovereignty.
The latest edition of the Europe-wide payment transaction survey conducted by management and technology consultancy BearingPoint clearly shows that payment transactions in Europe are becoming increasingly digital, mobile and secure. In the survey with participants from nine European countries, contactless card payments continue to dominate everyday life. At the same time, mobile payments, real-time transfers and new security mechanisms are gaining in importance. European payment initiatives are also becoming increasingly popular - alongside strong national solutions such as TWINT in Switzerland.
Contactless card payments remain the leader
Contactless card payments are the most widely used payment method across Europe. On average, 71% of respondents use contactless card payments, compared to 51% cash. Usage is particularly high in Finland (84%), followed by the Netherlands and Denmark (74 % each), Ireland and Sweden (73 % each) and France (72 %).
Although Switzerland is slightly below the European average at 68%, it still has a high penetration of contactless card payments. This makes it - together with Germany (63 %) and Austria (62 %) - one of the countries with comparatively moderate usage, which is partly due to the strong position of alternative digital payment methods.
Mobile payments are gaining importance among younger generations
The younger generations up to the age of 44 can imagine using mobile payments more and more frequently in the next two years. While 35% of respondents in the 35 to 44 age group can imagine doing so, the 18 to 24 age group has a high figure of 40% and the 25 to 34 age group tops the list with 41%.
On the other hand, the 45+ age group can imagine paying more and more often by card. While the 45 to 54 age group has already reached a high value of 29%, the 55+ age group has the highest value at 31%.
Cryptocurrencies in payment behavior remain a marginal topic. One in ten of the younger age groups of 18 to 44 years (10%) can imagine using cryptocurrencies more frequently in the next two years. In the 45 to 54 age group, only one in 25 (4%) can imagine doing so, and in the 55+ age group only one in 100 (1%).
Expectation confirmed: Every second person uses real-time transfers
On average, just over half of respondents in the euro countries (around 50 %) use real-time transfers regularly or occasionally. The frontrunners are France (69 %) and Ireland (63 %).
In non-euro countries - including Switzerland - usage is slightly lower at 47 %. Nevertheless, it is clear that instant payments have also established themselves as a relevant payment instrument outside the eurozone, particularly in the digital environment.
Christian Bruck, Partner and expert for payment transactions at BearingPoint, comments: «The payment transactions of the future will be hybrid. Cash, cards, wallets, instant payments and digital central bank currencies will coexist. PSD3, PSR, MiCA, DORA and the EU regulation on instant payments will create the most comprehensive regulatory framework that European payments have ever seen.»
National P2P solutions dominate - TWINT makes its mark in Switzerland
National mobile payment solutions continue to dominate payments between private individuals. In Switzerland, TWINT is clearly established and is used by 66 % of respondents. National solutions have also established themselves in other countries, such as MobilePay in Denmark (92 %), Swish in Sweden (86 %), Tikkie in the Netherlands (71 %) and MobilePay in Finland (61 %).
At the same time, Wero is the first European payment solution to be recognized across national borders. Awareness is particularly high in France, where 19 % use Wero for transactions between private individuals.
Katharina Casanova, Partner at BearingPoint Switzerland, categorizes the results as follows: «Switzerland is operating in a highly developed, hybrid payment ecosystem. While contactless card payments and TWINT are firmly anchored in everyday life, interest in new digital and Europe-wide interoperable solutions is growing. For Switzerland, digital sovereignty means above all reconciling innovation, security and user-friendliness - in conjunction with regulatory developments in Europe.»
Source: BearingPoint
