The Mobile Payments Landscape in Europe 24.

Welcome to our latest edition of "Connecting the Dots in Payments with Arthur Bedel," where we explore the dynamic world of financial transactions and innovations alongside this esteemed payments professional. Join us as we uncover insights and trends shaping the future of payments.

The European Mobile-Payments Landscape in 2024 is far from consolidated. It's diverse & extremely dynamic??

The mobile payments landscape in Europe exhibits significant fragmentation, driven by rivalry among international digital wallets (PayPal, ApplePay...) local mobile payments (Bizum, TWINT...), and overarching initiatives, i.e. European Payments Initiative (EPI).

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Over the past two decades, the role and evolution of mobile payment in Europe has increased significantly, capturing the interest of individuals, businesses, and policymakers.?

Several factors have contributed to this surge in adoption:?

?? The proliferation of smartphones

?? An increased reliance on digital technology

?? The impacts of the Covid-19 pandemic

For Banks and Retailers, mobile interfaces have become critically important, facilitating daily customer interactions, potentially enhancing the customer experience (CX) and fostering loyalty, creating a highly competitive payments market driven by 3 main categories of Alternative Payment Methods (APMs):

?? Major global wallets: Apple Pay, Google Wallet, WeChat Pay, and PayPal are present in most European markets, owing their success in outstanding CX and digital integration.

?? Domestic mobile payments: In Europe, over 45 distinct solutions (shown below), each with its own regional footprint, functional set-up, and owners impact the market. Remarkably, several local apms have experienced rapid expansion:

?? Vipps — 78% in Norway ?????

?? Swish — 78% in Sweden ?????

?? MobilePay — 62% in Denmark ???? & Finland ?????

?? TWINT — 57% in Switzerland ?????

?? Payconiq International — 57% in Belgium ?????

?? Bizum — 48% in Spain ?????

?? Region-wide European initiatives: Projects such as the EPI, the digital euro, and EMPSA European Mobile Payment Systems Association aim to meet European political requirements by establishing viable competitors to international payment schemes on a European level

?? Most of those local payment methods (60%) are usable across multiple channels (P2P, eCommerce and PoS), making them extremely attractive and competitive against traditional card payments?

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Those APMs have been successful due to a few factors:?

?? Favorable Market Environment — cashless payments are booming bolstered by high smartphone penetration & supportive regulatory environments.?

?? Absence of Alternatives Payment Methods — lack of competition?

?? Banking Sector Collaboration??— bank endorsement ensuring a widespread market coverage and interoperability?

?? Starting with P2P Payments — free P2P payments between users?

?? Targeted Marketing — promotional activities featuring brands and personalities coupled with special offers.?

?? Integration of Additional Services — discounts, coupons, loyalty programs, in-app donations, fintech services

Ultimately, the market will keep evolving with 3 potential outcomes: a single European payment method, multi-country cluster payment methods or a continued fragmented market. It will be really interesting to see what happens ??

Source: https://www.arkwright.com/project/european-mobile-payment-report-2024 by Arkwright Consulting?

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Source: https://lnkd.in/eHw-GN4e by Arkwright Consulting & Francesco Burelli

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