Europe’s payments landscape is both connected and fragmented. While the region shares strong regulatory frameworks such as PSD2 and GDPR, consumer preferences differ widely from country to country. Merchants expanding across Europe cannot assume a one-size-fits-all approach will work. A checkout experience optimized for the UK may fail in Germany. What converts in Spain may not be effective in France or Italy.
Understanding how people prefer to pay is critical to conversion. This article breaks down the most popular payment methods in the UK, Germany, France, Spain, and Italy. It also explores what these differences mean for merchants looking to localize checkout experiences, reduce friction, and build customer trust.
Across Europe, several themes are consistent. Digital wallets are gaining ground, cards remain a dominant force, and bank-based payments are strong in countries with established domestic systems. Cash is still present at the point of sale but is steadily declining as younger consumers shift to mobile-first habits.
According to recent industry reports, digital wallets now account for more than a quarter of e-commerce transactions in Europe, with cards following closely. In-store, contactless card payments are still the preferred method for higher-value purchases, though mobile wallets are catching up. Merchants should note that the shift toward wallets aligns with broader adoption of identity-linked payment services such as the upcoming EU Digital Identity Wallet. For deeper insights, see digital wallet adoption trends in Europe.
The UK is one of Europe’s most card-driven markets. Credit and debit cards account for over 65% of online and in-store transactions. Direct Debit is another cornerstone of UK payments, used for recurring services, subscriptions, and household bills.
Digital wallets are growing but remain secondary compared to cards. Around 20% of UK consumers use wallets weekly, with Apple Pay and Google Pay leading the charge. PayPal also has a strong presence in online shopping.
For merchants, this means prioritizing card acceptance, Direct Debit for recurring payments, and offering the leading wallets as complementary options.
Germany has long stood out for its preference for bank-based payments and invoices. Although cash has historically been important, digital wallets are now one of the most common online methods, alongside Girocard and SEPA transfers. Invoice-based payments, where consumers pay after receiving goods, also remain strong.
Weekly digital wallet usage is over 20%, showing momentum for mobile and online transactions. Girocard remains essential for in-person purchases.
German consumers value security, reliability, and control. Offering wallet and bank transfer options is essential to reducing cart abandonment. Merchants should also prepare for country-specific compliance demands, something easier to manage with a flexible payment orchestration strategy.
France is card-first, but with a national twist. Around half of transactions go through Cartes Bancaires, the local card scheme. Visa and Mastercard are widely accepted but often co-branded with Cartes Bancaires. PayPal holds a significant share of online transactions, while wallet usage is steadily growing.
A major development is Wero, the European Payments Initiative’s digital wallet. France is among the first countries where Wero will launch, aiming to unify payments across the EU with one wallet solution for cards, transfers, and peer-to-peer payments. For merchants, this is a change worth tracking closely, as Wero could shift consumer habits significantly in the next few years.
Spain is unique in Europe for the strength of PayPal, which captures roughly half of online payments. Local innovation is also driving change. Bizum, a mobile-based bank transfer service, has over 27 million active users. It is widely used for peer-to-peer payments and increasingly accepted in e-commerce.
Bizum is expected to expand further with EuropPA, a pan-European initiative set to increase interoperability. Cards remain common, especially for in-person purchases, and cash still plays a role, although it is fading.
For merchants targeting Spain, offering PayPal and Bizum is critical to capturing the majority of consumer preferences.
Italy combines traditional and emerging payment behaviors. Credit and debit cards are widely used, with Bancomat/PagoBancomat as the national debit scheme. These cards are often co-badged with Visa or Mastercard for international use.
Cash is still significant, particularly for small purchases, though its share is decreasing. Digital wallets are growing in adoption, with consumers increasingly open to mobile payments.
As in Spain, the coming expansion of interoperable instant payment services will further shift preferences toward wallets and transfers. Merchants should plan for this shift now, ensuring their checkout can adapt quickly.
| Country | Leading Payment Methods | Notable Trends |
| UK | Credit/debit cards, Direct Debit, wallets | Cards dominate; Direct Debit strong for recurring |
| Germany | Digital wallets, Girocard, Invoice, Bank transfers | Wallets growing; strong preference for bank-based |
| France | Cartes Bancaires, Cards, PayPal | Wero wallet launch will change the market |
| Spain | PayPal, Bizum, Bank Transfers, Cards | PayPal dominates online; Bizum growing fast |
| Italy | Bancomat/PagoBancomat, Cards, Cash | Co-badged debit common; wallets rising |
For merchants expanding or optimizing in Europe, the key lesson is localization. Offering the right methods in the right markets directly improves conversion.
Managing all these preferences can be complex, particularly when expanding into multiple markets. A payment orchestration layer simplifies this complexity. It allows merchants to connect multiple payment methods, PSPs, and wallets through one integration, ensuring flexibility and compliance. For more context, see European retail payment trends in 2025.
No review of European payment methods is complete without looking at the rapid rise of digital wallets. Consumers across the continent are increasingly linking their bank cards and accounts to wallets such as Apple Pay, Google Pay, PayPal, and local solutions. Wallets are now one of the top three payment preferences in e-commerce, driven by convenience, security, and the growing use of mobile-first shopping.
For merchants, this is not only about offering global wallets but also country-specific ones. Sweden’s Swish, France’s Paylib, and Spain’s Bizum show how local wallets can dominate markets. Supporting them can have a direct impact on conversion and customer trust.
You can explore the full picture in our dedicated guide to digital wallets in Europe, which highlights adoption trends and the integration strategies merchants should prioritize.
As merchants scale across Europe, one of the biggest risks to revenue is downtime or service interruption. A single PSP outage can mean lost sales across entire regions. Regulatory complexity adds another layer of risk, as merchants must comply with PSD2, SCA, GDPR, and local authentication standards.
Payment orchestration provides a more resilient approach by allowing you to connect multiple PSPs and acquirers in one layer. If one provider experiences downtime, transactions can automatically route to another. This reduces service risk and builds customer trust by ensuring checkout always works.
Merchants that rely on a single PSP are exposed to unnecessary risks. Learn more about why orchestration is a better model for Europe’s complex market in our guide on PSPs vs payment orchestration.
Which payment method is most popular in Germany?
Digital wallets and invoice payments are leading online, with Girocard still critical for in-store transactions.
What drives PayPal’s dominance in Spain?
Its strong buyer protection, ease of use, and widespread acceptance among merchants.
How significant is Wero for French merchants?
It could reshape payment behavior by unifying multiple local schemes into a single wallet, simplifying integration for merchants.
Are cards still important in Europe?
Yes. Cards remain a dominant method in the UK, France, and Italy, even as wallets grow.
Should merchants adopt country-specific methods?
Absolutely. Localized payment support is one of the most effective ways to improve conversions and build trust.
Europe’s payment ecosystem is evolving quickly, but it remains fragmented by country. Merchants that succeed are those that respect local preferences while building flexible systems capable of adapting to new methods like Wero or expanding instant payments.
With payment orchestration, you can support multiple methods, maintain compliance, and ensure that your checkout matches consumer expectations in every market.
Ready to localize your payments and grow in Europe? Contact Gr4vy to see how orchestration can simplify your payment strategy and unlock higher conversions across borders.
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