Discover Regional Payment Preferences

Taking all we’ve learned from Intro to Local Payment Methods, we now take a closer look at the different types of local payment methods preferred by consumers and how local products make a difference in purchase decisions.  

Local payment methods are an important component in nurturing familiarity, convenience, and trust with customers. Our Nexi/Nets Ecommerce Report 2022 shows that several factors support the inclusion and integration of local payment methods into e-commerce site experience flows as well as at physical point-of-sale contacts and registers.  

According to this study of online payments in Europe Digital wallets have overtaken cards as the most preferred method of payment overall.  

While the rise in digital payment reliance continues to soar throughout Europe and the rest of the world, cash and pay-on-delivery options remain popular in Eastern Europe and some parts of Italy. 

“All our clients and prospects care deeply about which payment methods we can make available to them,” Said Sarah Barslund Lauridsen, CPO for Nexi Ecommerce. She explained how research has shown that decision makers name payment methods as one of the top parameters for choosing a payment service provider (PSP).

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Nº02

February 2024

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Why Shoppers Love Their Local Payment Methods 

To a growing number of Europeans, local payment methods are more than simply payment options that are specific to particular countries or regions. Many of these local payment methods have become important to consumers due to familiarity, convenience, and trust.  

Swish (Sweden)

A platform trusted by 8 million users, offering a multitude of benefits. Recognized as Sweden’s strongest brand in all categories. According to YouGov. Swish is Sweden’s preferred payment method online. In the ages 18–54 according to Kantar Sifo. The payment method that converts best. According to Kantar Sifo.

Dankort (Denmark)

Dankort stands out as the top choice for Danish consumers, dominating card transactions with over 80% being contactless. Notably, Dankort seamlessly integrates with Apple Pay, offering the convenience of using iPhone or Apple Watch as digital alternatives. This extends beyond physical transactions, as Dankort ensures secure online payments. The introduction of Dankort Secured by Nets online security solution has further enhanced its safety, incorporating a text message approval step for added protection during online transactions.

VIPPS (Norway)

Vipps, a versatile mobile payment app and digital wallet, simplifies transactions by enabling users to pay for products and services using the recipient’s mobile phone number. Beyond purchases, Vipps facilitates peer-to-peer money transfers. Exclusively supporting Norwegian Krone, Vipps requires users to possess a Norwegian social security number, a Norwegian bank account, and a Norwegian mobile phone number for seamless utilization.

iDEAL (Netherlands) 

iDEAL is the most popular online payment method in the Netherlands. It allows customers to make direct payments from their bank accounts through a secure online banking environment. This method is widely trusted and used for various online transactions, including e-commerce purchases and bill payments. iDEAL was used as the example in the previous article because of its overwhelming popularity in the region. In fact, 83% of the Dutch use this national payment method over all others as card use has plummeted in recent years throughout the region. 

Multibanco (Portugal)

A trusted and convenient option for e-commerce transactions in Portugal, Multibanco lives up to its name as a Portuguese interbank network. What sets this local payment apart is how it allows consumers to use ATMs or online banking to make payments for purchases, allowing a wider range of payment options for consumers and businesses alike. 

Klarna (Germany) 

Formerly known as Sofortüberweisung, Klarna is widely used in Germany and several other European countries. It enables customers to make real-time bank transfers during the checkout process, providing a seamless and secure payment experience. It’s a preferred choice for many online shoppers in Germany and it also has a popular buy now and pay later option that is currently gaining traction in many other parts of the world. Klarna Pay Later allows shoppers options including: schedule four interest-free payments, pay in 30 days, or choose 6–36 month financing. 

Paylib (France)  

This French digital wallet lets consumers conveniently make mobile and online purchases. Paylib, also used for P2P payments, is currently surpassing PayPal in France. The Paylib digital wallet is supported by major French banks including Crédit Agricole, BNP Paribas, and Societé Generale. 

Bizum (Spain) 

Recently growing in e-commerce popularity in Spain, Bizum is a peer-to-peer payment system that enables people to send money to friends and family while also making online purchases faster. Backed by their popular app, which links and authenticates via mobile phone number, the demographics skew younger. After authentication, payments are securely transferred from the consumer’s bank account to any other bank account owned by either business or peer.  

SEPA (Single Euro Payments Area) 

Specifically set up for countries in the European Union, SEPA offers direct debit and credit transfer services in euros. SEPA Direct Debit works as a direct debit solution across Europe that enables businesses to set up either a one-time collection or recurring payments with consumers, linked from bank accounts throughout 34 countries. This method makes payment collection far simpler and ensures conversion to euros, but it also presents recurring chargebacks for up to 13 months. SEPA Direct Debit is most popular in Spain, Portugal, Netherlands, France, and Germany. SEPA Credit Transfer (SCT) allows consumers to pay for their order by transferring money directly to a business bank account. SEPA Credit Transfer is a preferred local payment method in the Netherlands, France, and Germany. 

As the importance of localising payments as part of the customer checkout experience becomes clearer, we can now look at how localising all interactions can help attract shoppers, build relationships, and create loyalty for businesses.