Money Buzz! Europa

Tag: online payment

  • Euro zone: Four out of ten card transactions were made using contactless technology

    Euro zone: Four out of ten card transactions were made using contactless technology

    Euro area consumers are gradually shifting towards cards for in-person retail payments, although cash remained the most used instrument at the end of 2019, data published by the European Central Bank (ECB) show.

    Last year euro area adult consumers used cash for 73% of their point-of-sale and person-to-person retail transactions (48% in value terms).

    In a previous ECB study conducted in 2016, the figure was 79% of these transactions (54% in value terms).

    The use of cards for in-person retail payments increased by 5 percentage points over the same three years, from 19% to 24% (41% in value terms).

    Almost four out of ten card transactions were made using contactless technology in 2019.

    For their online shopping, euro area adult consumers paid mainly by card (49% of transactions) and one out of four online transactions was made using e-payment solutions.

    Four out of ten bill payments were made using direct debit and two out of ten by credit transfer.

    How Covid-19 pandemic changed payment behavior

    Four out of ten respondents replied that they had used cash less often since the start of the pandemic. While most of those who fell into this category expected to continue to do so after the pandemic, the long-term impact on payment behaviour is still uncertain.

  • What payment methods do Europeans use and love

    What payment methods do Europeans use and love

    Around 13.000 people in 13 European countries were asked by ING how they pay and why they use their selected payment methods.

    When asked how true or untrue the statement ”The more payment options I have, the better” is, 25% across Europe considered the statement to be completely true. Opposed to this, 13% considered the statement not true at all.

    Subtracting the untrue from the true responses gives a net figure of 12% who consider the statement to be true.

    But there was considerable variation between countries ranging from a net low of -16% in the Netherlands, to a high of 36% in Romania.

    People employed full-time use an average of 5.3 different payment methods

    Those employed full-time use an average of 5.3 different payment methods, compared to 4.0 for those who are not working due to being unemployed.

    Similarly, those with a master’s or PhD use an average of 5.7 different payment methods, compared to 3.7 for those who did not finish high school.

    Consistent trends are also seen across incomes, those earning more than €7k per month use an average of 6.0 different payment methods, those without an income use an average of 3.1.

    People who own lots of technology devices tend to use more options

    Own 8 different devices and you will use an average of 10.2 different payment options, compared to the 3.1 that are used by those who own one piece of technology.

    This is potentially also a reflection of an early adoption mentality. Own more tech devices, be open to experimenting with the latest trends.

    Most people tend to use between four and six methods to make payments in-store and online

    In the last six months, three in-store payment options – cash (69%), bank card with pin (65%), and tapping a card without a pin (57%) – were used by more than half of survey respondents.

    To make online payments over the past month, two options dominated: entering card details on a website (42%) or using online payments system PayPal (48%).

    Very few Europeans, just 4%, say they prefer to use their phone to pay for small expenses in-store, over all other options, for example.

  • Online payments with Visa in Romania go up by 50%

    Online payments with Visa in Romania go up by 50%

    Online transactions with Visa cards increased by over 50% in April 2020 against the same period of last year, as the e-commerce sector in Romania has registered a strong growth after the Covid-19 pandemic outbreak.

    This period has accelerated the move to digital like never before, as many companies were bound to go online in order to keep their business afloat and safety measures against Covid 19 influenced consumers’ payment behavior.

    Thus, there is a growing preference for contactless and mobile payments, as well as a shift to online.

    Although online shopping has been growing steadily in Romania over the last years, there is clearly room for further growth as only 29% of the internet users in Romania shopped online in the past year, compared to the European average of 67% (Eurostat data). 

  • Non-cash transactions increase in Czechia

    Non-cash transactions increase in Czechia

    The increase in non-cash transactions in Czechia even after the coronavirus lockdown is visible in virtually all fields, latest O2 eKasa data show.

    For glass, painting and painting works, the proportion of non-cash payments increased from 12% to 33%, for activities for personal and physical well-being (e.g. fitness centers, massages, therapies) from 12% to 25%, for roofing works from 3% to 15%.

    In the hospitality industry from 9% to 20%, for hairdressing, cosmetics and similar activities from 8% to 17%, and for electrical installations from 3% to 12%.

    Overall, three quarters of businesses resumed their economic activity in the 11 weeks since the crisis began, with the value of all transactions falling by 18% compared to the pre-crisis period.

    The volume of all transactions therefore reaches 82 % of the original level. In practice, this means that customers buy less often, but they give more money for each purchase than before quarantine.

    As a result, the value of cash register sales has increased by 10% for open businesses.

    Almost half of restaurants and hotels are still closed

    The accommodation, catering and hospitality sectors experienced the deepest decline.

    O2 eKasa data show that more than half of enterprises (55%) has already started to work in this segment.

    Wholesale, retail or manufacturing are already at 90% of output compared to the pre-crisis period. The number of transactions via EET decreased by only 23 % despite the abolition of the fiscal obligation.