London – The increasing number of mobile phone users and the massive growth of eCommerce have led to the rapid adoption of digital payments all over the world. Cashless payments have become an appealing alternative to many European consumers, as well, causing a significant impact on the payments industry traditionally dominated by cash, credit cards, and debit cards.
According to data gathered by Finanso.se, the European digital payments market is expected to hit a record $802bn transaction value this year, with a 9.9% year-over-year growth rate. The strong upward trend is set to continue in the following years, with the market value reaching nearly $1trn by 2023.
European Digital Payments Jumped Over 30% in Three years
In 2017, the European digital payments industry was worth more than $614 million, revealed the Statista survey. Over the next twelve months, the transaction value of the unified market increased to over $666 million and continued growing to more than $730 million by the end of 2019. Statistics indicate that the entire European digital payments industry rose by more than 30% in the last three years.
Digital commerce represents the most significant segment of the market, expected to generate more than 90% of the transactions this year. The average transaction value per user in this part of the European digital payments industry also increased over the last three years, rising from $1,053 in 2017 to over $1,239 in 2020.
However, the mobile POS payments segment of the market is expected to witness even more significant growth in the following years. The transaction value of the European mobile payments jumped 2.5 times in the last three years, rising from $17.4 million in 2017 to over $48 million in 2020. By the end of 2023, this figure is forecast to hit more than $111.4 million.
The average transaction value per user in the mobile payments segment nearly doubled over the last three years, reaching $931 in 2020. Statistics indicate this amount will hit $1,767 by 2023, or three times more than the 2017 figures.
Nearly 705 Million Europeans Will Use Digital Payments by 2023
The global digital payments industry has seen many innovations over the past few years, including mobile wallets, P2P mobile payments, real-time payments, and cryptocurrencies. This new, simple-to-use, cashless payment methods have drawn many users.
In 2017, there were over 601 million people in Europe using digital payments. Over the last three years, this number increased to more than 660 million. Statistics show the number of Europeans using cashless payment is set to reach 705 million by 2023.
Analyzed by geography, the United Kingdom represent the leading European digital payments market, expected to reach $176 million transaction value this year. Germany and France follow with $127.4 million and $96.6 million, respectively.
The 2019 Statista consumer survey also revealed that European countries dominate when it comes to the use of online payment through companies like Paypal, Amazon Pay, Google Wallet, or Masterpass. With a 77% usage rate, Germany is the leading country in the world in this field of digital payments. The United Kingdom and Poland follow with 71.5% and 71%, respectively.