Over the past decade, the online payment market has undergone drastic changes with the advent of payment methods new, especially in Europe. Customers now have more options than ever before, and it's easier for them to switch to another store if that store supports their preferred online payment method. So how do merchants and business owners choose which payment method is right for their customers?
In this article, PlutusPay We will help you learn why choosing the right payment method for your business is so important and help you choose the most suitable payment methods in Europe when doing business in this fertile market.
Top 10 famous payment methods in Europe:
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Visa and Mastercard
Visa and Mastercard are two international financial services companies that specialize in supporting credit and debit card payments linked to bank accounts. With billions of users worldwide, their global presence makes them the ultimate choice for merchants looking to offer a popular payment method for their customers.
Strongest areas of use: Great Britain, Spain, Poland
Weakest areas of use: Italy, Germany, Norway
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PayPal
First launched in 1998, PayPal was the first financial technology company to allow customers to pay with email addresses. PayPal started to gain global popularity when it was acquired by eBay in 2002. PayPal users will need to create an account (e-wallet) where they can keep money and use it to transfer money to customers and to other sellers.
PayPal's average daily users can fluctuate significantly depending on location.
Strongest areas of use: Germany, United Kingdom, France
Weakest areas of use: Finland, Türkiye, Czech Republic
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iDeal
iDeal is a payment method from the Netherlands with the goal of eliminating the use of credit and debit cards. At the online payment page, iDeal will transfer you to your bank account so that you can make the payment directly to the designated recipient. More than 53% customers in the Netherlands prefer to use iDeal when paying over other methods
Main use area: Netherlands.
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Giropay
Giropay works in a similar way to iDeal, allowing direct money transfers between bank accounts. Similar to iDeal, Giropay only specializes in serving the German market. In addition, Giropay has connections with more than 1,500 German banks nationwide and they always make sure that German customers can make direct money transfers to other customers also living in Germany. According to statistics, Giropay accounts for about 20% of total online shopping in Germany.
Main use area: Virtue.
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Sofort
Sofort was long ago acquired by Klarna and renamed PayNow in most of its target markets. Sofort is similar to both Giropay and iDeal, but is more commonly used in some European countries.
Strongest areas of use: Austria, Germany, Switzerland, Belgium
Area of least use: Poland, Italy, Spain
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Bancontact
A popular payment method in Belgium, Bancontact relies on a single authentication method to process payments. Like the other payment methods on this list, the user will be directed to a Bancontact window for verification before being redirected to the original website to confirm payment.
Main use area: Belgium.
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EPS
Banks in Austria all allow customers to use EPS, a payment method that transfers money directly between bank accounts. More than 80% sellers in Austria allow customers to pay via EPS, so this will be a method that you should consider if you are planning to expand the market to this country.
Main use area: Shirt.
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Multibanco
With the Multibanco payment method, customers can pay sellers through ATMs or with their bank account information. This method is supported by all domestic banks in Portugal.
Main use area: Portugal.
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SEPA
SEPA is an acronym for Single Euro Payments Area. By using this payment method, merchants can create a payment or series of payments after receiving the customer's authorization. The advantage of using SEPA Direct Debit is that it creates a smooth experience for both customers and merchants, especially when used for recurring payments.
Main use area: Europe.
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Klarna
Today, BNPL payment methods (Buy Now Pay Later) is growing in popularity. Klarna is the most prominent example, with a market value of nearly $6.7 billion. However, BNPL payment methods will likely face regulatory challenges and could very well affect the development of their services. In return, until now, the popularity of these methods is indisputable.
From the customer's point of view, BNPL services work by charging a term until the total amount is paid in full.
Strongest areas of use: United Kingdom, Sweden, Germany.
Weakest areas of use: Spain.
summary
Providing enough suitable payment methods is essential for today's sellers, especially when doing business online. By using a multi-channel payment gateway (Omnichannel Payment Gateway), merchants can now expand the list of payment methods they can integrate into their checkout pages to maximize conversions.
Of course, you don't have to have all the European payment methods in your store. However, when you pay more attention to adjusting your checkout page to better suit the payment needs of your customers, it will help your business grow and thrive. more than ever.
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