Payments in EU E-Commerce
Payment preferences vary significantly across EU member states. While credit and debit cards are widely accepted, many consumers prefer local payment methods โ and not offering them leads to significant cart abandonment. A successful pan-EU payment strategy must balance breadth of coverage with the complexity of supporting multiple methods.
Payment method preferences by region
- Northern Europe: Cards, mobile payments (Swish in Sweden, MobilePay in Denmark, Vipps in Norway)
- Germany/Austria: SEPA direct debit, Klarna (invoice/BNPL), PayPal, Giropay
- Netherlands: iDEAL (dominant with over 70% of online transactions), credit cards, Klarna
- France: Carte Bancaire, PayPal, Alma (BNPL)
- Italy: Cards, PayPal, Scalapay (BNPL), bank transfer
- Spain: Cards, Bizum, PayPal, Sequra (BNPL)
- Poland: BLIK (used by over 15 million Poles), bank transfers (Przelewy24), cards
- Portugal: MB Way, Multibanco, cards
SEPA: The backbone of EU payments
The Single Euro Payments Area (SEPA) enables standardized euro payments across 36 European countries. SEPA Credit Transfer and SEPA Direct Debit provide the foundation for cross-border payments, with transfer times of one business day and low transaction costs. SEPA Instant Credit Transfer, which processes payments in under 10 seconds, is gaining traction and will become mandatory for all EU payment service providers. For B2B transactions and recurring payments, SEPA Direct Debit offers a reliable and cost-effective solution.
PSD2 and Strong Customer Authentication
The revised Payment Services Directive (PSD2) introduced Strong Customer Authentication (SCA) for electronic payments in the EU. This requires two-factor authentication for most online transactions, using at least two of: something the customer knows (password/PIN), something they have (phone/card) and something they are (fingerprint/face). SCA compliance is mandatory and affects conversion rates โ optimizing the authentication flow is crucial.
There are exemptions from SCA that can help maintain conversion rates: transactions under โฌ30 (up to a cumulative โฌ100), trusted beneficiaries whitelisted by the customer, recurring payments of the same amount to the same merchant, and transactions assessed as low risk through Transaction Risk Analysis (TRA). Working with your payment service provider to properly implement these exemptions can significantly reduce friction at checkout.
Buy Now Pay Later across the EU
BNPL services have grown rapidly across Europe, with providers like Klarna, Afterpay, Scalapay and Alma offering installment payments in multiple markets. The EU Consumer Credit Directive revision brings BNPL under stricter regulatory oversight, requiring creditworthiness assessments and clearer disclosure of terms. Despite the regulatory tightening, BNPL remains a powerful conversion tool, particularly for fashion and electronics categories.
Zunapro integrates the right payment mix for each EU market, ensuring PSD2 compliance, optimized checkout flows and maximum conversion rates across borders.