ResearchAndMarkets has rolled out the ‘Europe POS Payment Methods 2023’ report, detailing how digital wallets and other POS payment methods gain popularity over cash.
The report showcases how consumers worldwide are gradually returning to in-store purchases but continue to prefer digital payment options when paying offline. As of April 2022, 52% of consumers chose to pay less with cash, and 36% opted for contactless payment methods.
In response to this evolving demand, vendors and traders are departing from conventional POS systems and adopting cutting-edge solutions such as smart POS, soft POS, and mPOS. Among these alternatives, debit cards have risen as the favoured payment method for POS transactions, with over fifty percent of merchants viewing them as indispensable owing to their security advantages and ease of use.
Europe witnesses a significant growth in the usage of contactless credit and debit cards
In Europe, although cash remains dominant, there has been significant growth in the usage of contactless credit and debit cards. In 2022, over 60% of card payment transactions at POS were contactless. Leading the way in this trend are countries like Finland, Netherlands, Belgium, and Luxembourg, where the share of card payments at POS is notably high.
While cash is still preferred by 59% of surveyed respondents for in-store transactions in Europe as of June 2022, alternative POS payment methods like QR code payments, digital wallets, and payments via loyalty programs are gaining traction. For instance, Klarna’s new loyalty card feature allows users to store their loyalty cards digitally in their app, streamlining the payment process and enhancing the customer experience.
In the UK, debit cards and cash are the top two most used POS payment methods as of April 2022, with almost half of shoppers preferring to pay with cash. However, proximity mobile payments in the UK are expected to see significant growth, with an estimated 16 million proximity mobile payment users projected by 2026. Germany has also experienced significant growth in contactless physical card usage at POS, accounting for almost three quarters of all card payment transactions as of 2022. The Giro card dominates the POS payment landscape, representing 42% of all card payments used at POS, followed by credit cards at 6%.
Topics addressed in the report
The report addresses several key inquiries. It investigates the intentions of global decision-makers, aiming to determine the percentage planning to implement mobile POS technology for in-store shopping by 2027. Additionally, it delves into the anticipated global volume of soft POS transactions by 2027. The report also evaluates the ongoing advancements in contactless payment adoption at point-of-sale (POS) systems within Europe. Moreover, it examines the preferences of UK respondents, quantifying the percentage who utilised retailer mobile apps for payments through platforms like Apple Pay or Google Pay as of February 2023. Lastly, the report offers insights into the projected growth of peer-to-peer (P2P) mobile payment users in France, forecasting figures for the year 2026.
