Local Payment Methods in Europe: What Online Businesses Must Support in 2025
Europe’s e-commerce landscape is vast and diverse, shaped by different cultures, consumer behaviors, and financial systems. Unlike regions where a handful of payment methods dominate, European consumers have distinct preferences that vary from country to country. For instance, while credit cards and PayPal are common in some nations, others prefer bank transfers, digital wallets, or even mobile-based solutions unique to their markets. This diversity presents both an opportunity and a challenge for online businesses looking to expand or optimize their presence in Europe.
Supporting local payment methods is a key driver of both conversion rates and customer trust. A well-integrated payment experience reassures customers that the business understands their needs and operates with legitimacy in their region. It removes barriers, making transactions seamless, secure, and stress-free. Moreover, with regulatory shifts like PSD2 and the growing trend of open banking, payment landscapes in Europe are continuously evolving. Businesses that stay ahead by adopting local payment solutions will not only see increased sales but also foster loyalty among their customers.
Why Local Payment Methods Matter
When it comes to online payments, one size does not fit all—especially in Europe. Each country has its own banking infrastructure, financial habits, and historical payment preferences that shape how consumers choose to pay. For instance, Dutch consumers overwhelmingly prefer iDEAL, a direct bank transfer system, while Germans favor Sofort (now Pay Now) and Giropay. In Poland, BLIK, a mobile-based payment method, dominates transactions. Meanwhile, countries like Sweden have seen a rise in mobile-first solutions like Swish, and in Belgium, Bancontact remains a staple for everyday payments. Understanding these preferences is crucial for businesses aiming to maximize their reach across the continent.
Ignoring local payment preferences can directly impact conversion rates. Research indicates that cart abandonment rates can soar past 70% if a shopper does not see a payment option they trust.(hotjar.com)
This means that even if a business has an excellent product, competitive pricing, and a well-designed website, it could still lose customers at the final step—the checkout—simply because it lacks the right payment options. Offering local payment methods can reduce friction, build confidence, and encourage customers to complete their purchases.
Beyond just reducing cart abandonment, integrating local payment methods offers a competitive advantage. Businesses that cater to regional payment habits set themselves apart from international competitors that rely solely on global payment options like Visa, Mastercard, or PayPal. A merchant who supports SEPA for bank transfers in the Eurozone, Klarna for Buy Now, Pay Later in Sweden, or TWINT for mobile payments in Switzerland will naturally have an edge over one that doesn’t.
Moreover, regulatory changes and technological advances are making local payments more relevant than ever. The push towards open banking, real-time payments, and increased security measures like Strong Customer Authentication (SCA) under PSD2 is reshaping how transactions happen across Europe. Businesses that proactively embrace these trends will not only improve customer satisfaction but also future-proof their operations against evolving financial landscapes.
In summary, local payment methods are not just a nice-to-have feature; they are an essential component of a successful European e-commerce strategy. They influence consumer trust, increase conversion rates, and provide a competitive edge in an increasingly localized market. Businesses that align their payment strategies with customer preferences will see direct benefits in sales, customer retention, and long-term brand loyalty.
Overview of Popular Local Payment Methods in Europe
Europe's payment landscape is a patchwork of different preferences, shaped by local banking systems, regulations, and consumer habits. While some countries favor credit cards and digital wallets, others rely heavily on bank transfers or mobile payments. Understanding which payment methods are dominant in each country is crucial for businesses looking to expand their e-commerce operations in Europe. Below is a breakdown of key local payment methods across major European markets.
Germany: Germans are known for their cautious approach to credit and strong preference for secure, direct payment options. PayPal is widely used for its buyer protection and ease of use. Giropay, which integrates with over 1,500 German banks, allows customers to make direct bank transfers. Sofort (now rebranded as Pay Now under Klarna) is another popular option, enabling instant online payments without requiring a separate account.
Netherlands: Dutch consumers overwhelmingly prefer iDEAL, which facilitates direct bank transfers. Nearly every Dutch consumer with an online banking account can use iDEAL, making it the dominant payment method in the country, accounting for more than 60% of e-commerce transactions. (en.komoju.com)
Belgium: Bancontact is the leading payment method, allowing users to pay online via their bank accounts. Many Belgians also use credit cards, but Bancontact remains the preferred method for online and in-store purchases.
Poland: BLIK is a mobile payment system that allows users to generate a short-lived, one-time code in their banking app to authorize transactions. It is widely accepted in online stores, physical stores, and even for ATM withdrawals. BLIK’s ease of use and high security have made it the most popular online payment method in Poland.
Sweden: Swish, a real-time mobile payment system, is extremely popular, allowing users to transfer money using just a phone number. With widespread adoption for both personal and business transactions, Swish has become a go-to payment method in Sweden.
France: French consumers prefer Cartes Bancaires, a domestic card network co-branded with Visa or Mastercard. This payment method offers enhanced security and is widely used for both online and in-store transactions.( adyen.com)
Denmark: The Danish payment system is heavily reliant on Dankort, the national debit card, which is often co-branded with Visa. MobilePay, a mobile payment app, has also gained popularity for contactless transactions.
Finland: Finnish consumers favor bank transfers, with most transactions being conducted through online banking. Pivo, a mobile payment app linked to bank accounts, is also gaining traction, especially among younger consumers.
Austria: EPS (Electronic Payment Standard) is the preferred online banking payment system, allowing users to pay directly from their bank accounts with high security.
United Kingdom: British consumers rely heavily on debit cards, with Visa and Mastercard being the most commonly used. PayPal is also a popular online payment option, alongside mobile wallets like Apple Pay and Google Pay, which are growing in adoption for quick and secure transactions.(mollie.com)
Italy: Italians still use cash more frequently than many other European countries, but digital payment adoption is increasing. PayPal is one of the most widely used online payment methods, offering a familiar and secure way to shop.
Spain: Spanish consumers are shifting toward digital wallets and card payments, with mobile-based payment solutions growing in popularity. Credit and debit cards remain widely accepted, but digital alternatives are gaining momentum.
Norway: Norway leads Europe in electronic payments, with an average of 815 digital transactions per person in 2023. Vipps, a mobile payment app, is the dominant solution, widely used for peer-to-peer and business transactions.(bild.de)
Neopay – Payment Gateway Supporting Local Methods
For businesses looking to expand their e-commerce operations across Europe, integrating local payment methods is essential. Neopay is a powerful payment gateway designed to meet these needs by offering secure, scalable, and user-friendly payment solutions that align with regional preferences.
Neopay provides businesses with a seamless way to accept payments, ensuring a frictionless checkout experience for customers. It is particularly beneficial for companies targeting Central and Eastern European markets, as it supports fully integrated PLN payments and has direct connections with banks, enabling swift and secure transactions.
One of Neopay’s key strengths is its partnerships with major financial institutions like BLIK and BNP Paribas, optimizing financial processes for businesses. Additionally, it offers virtual IBANs, allowing companies to simplify account management and handle payouts efficiently through a single integration.
Neopay Open Banking is already available in Estonia, Finland, Latvia, Lithuania, the Netherlands, Norway, Poland, Romania, Spain, Greece, Sweden, Denmark, Slovakia, Bulgaria, and Croatia. This broad coverage enables businesses to tap into local markets with payment solutions tailored to regional consumer preferences. By using Neopay, businesses can increase conversion rates, reduce cart abandonment, and build trust with customers by providing payment options they are familiar with.
In a competitive e-commerce landscape, Neopay simplifies payment processing, helping businesses streamline operations, cut costs, and improve the overall payment experience for customers across Europe.
The Future of Local Payment Methods in Europe
The way Europeans pay is rapidly evolving, driven by technology, regulations, and shifting consumer habits. Some key trends shaping the future of local payments include:
Rise of Digital Wallets
Digital wallets are becoming a primary payment method in many European countries. The European Payments Initiative (EPI) has introduced Wero, a unified digital wallet aimed at streamlining transactions across Europe. Initially launched in Germany, it is expanding to France and Belgium, with plans for broader adoption.
Instant Payment Systems
Real-time payments are becoming the norm. Instant payment networks allow immediate fund transfers between bank accounts, improving convenience for both consumers and businesses.
Central Bank Digital Currencies (CBDCs)
The European Central Bank (ECB) is actively exploring the development of a digital euro to complement cash payments and strengthen financial sovereignty. This initiative aims to provide a secure alternative to private cryptocurrencies.
Open Banking and API Integration
Open banking, facilitated by PSD2, allows third-party providers to access banking data (with user consent) to create more efficient and innovative payment solutions. This has led to the rise of account-to-account payments, reducing the need for traditional card networks.
Growth of Neobanks
Digital-only banks like Revolut, N26, and Monzo are gaining market share, offering low fees, user-friendly apps, and seamless international transactions. Their rise reflects a shift toward fully digital financial services.
Regulatory Shifts Toward a Cashless Economy
Some European regions are moving toward cashless transactions, with policies that encourage electronic payments. Governments are also implementing new financial regulations to improve accessibility to digital payment services.
Businesses must stay ahead of these trends to remain competitive and future-proof their payment strategies.
Conclusion
For online businesses in Europe, local payment methods are no longer optional—they are essential. Supporting the right mix of payment options reduces cart abandonment, increases trust, and enhances conversion rates.
The importance of localization in payments cannot be overstated. Whether it’s iDEAL in the Netherlands, BLIK in Poland, or Bancontact in Belgium, offering payment methods that align with customer preferences drives sales and customer loyalty.
Regulatory changes like PSD2 and SCA have reshaped payment security, making authentication and compliance key factors in e-commerce success. Meanwhile, emerging trends such as digital wallets, real-time payments, open banking, and neobanks are shaping the future of European transactions.
Businesses that stay ahead of these payment trends will be best positioned to succeed in Europe’s competitive e-commerce market. By offering secure, seamless, and localized payment options, they can create a frictionless shopping experience that meets the evolving needs of European consumers.