Mobile Payments Boom in Europe: 6% of In-Store Transactions Now Via Phone
The way Europe shops is changing at the checkout. Mobile payments—using smartphones, smartwatches, or wearables—are becoming a mainstream choice, steadily displacing cash and cards for everyday purchases. New data reveals that while adoption is soaring, a significant “digital payment divide” exists across the continent, with some nations racing ahead while others hold fast to traditional methods.
The Big Picture: Mobile Payments Gain Meaningful Share
Across the euro area, mobile payments accounted for 6% of all in-store (point-of-sale) transactions in 2024, representing 7% of the total transaction value. This marks a dramatic increase from a mere 1% share in both volume and value just five years ago in 2019.
This growth signifies a pivotal shift. Mobile payments are no longer a niche novelty but a substantial and growing segment of the retail economy, driven by consumer demand for speed, convenience, and integrated digital experiences.
The Leaders and Laggards: A Continent Divided
The adoption landscape is strikingly uneven, highlighting how cultural, infrastructural, and economic factors influence digital payment uptake.
Leading the Charge:
The Netherlands is the undisputed European leader. A remarkable nearly 19% of all in-store transactions are now made with a phone or watch. The country also leads by value, with 17% of total POS value coming from mobile payments.
Ireland & Finland follow as strong adopters, with around 10% of transactions conducted via mobile devices.
Lagging Behind:
Countries like Slovenia, Croatia, and Belgium are at the other end of the spectrum, where mobile payments make up only about 3% of in-store transactions.
By transaction value, Croatia, Belgium, Portugal, and Austria also show some of the lowest levels of mobile payment usage.
The Drivers: Why Consumers Are Making the Switch
The rise of mobile payments is fueled by a powerful combination of perceived benefits:
Ultimate Convenience: The ability to pay with a tap of a phone or watch—without fumbling for a wallet or card—is a major draw. It integrates seamlessly with other smartphone functions like loyalty cards and receipts.
Enhanced Security Perception: Contrary to common concerns, many users perceive digital wallets (like Apple Pay, Google Pay) as more secure than physical cards due to features like tokenization, biometric authentication (Face ID, fingerprint), and device-specific authorization.
Tech-Savvy Populations: Nations with high digital literacy and widespread smartphone penetration naturally see faster adoption. The infrastructure (NFC-enabled terminals) and consumer comfort exist in tandem.
The Hesitations: Security Fears Remain the Biggest Hurdle
For those not using mobile payments, security is the primary barrier. Surveys indicate:
28% of non-users cite fears of hacking as their main concern.
27% worry specifically about payment fraud.
These concerns persist despite the advanced security protocols of major digital wallet providers, indicating a significant consumer education gap.
The Persistent Dominance of Cash and Cards
Despite the mobile boom, traditional payment methods are far from obsolete.
Cash remains the most frequent payment method, used in 52% of all transactions (though it represents only 39% of the total value, as it’s typically used for smaller purchases).
Cards are used in 39% of transactions but account for a larger 45% of the total value, showing their dominance for medium to high-value purchases.
This underscores that mobile payments are currently winning the “micro-transaction” battle—competing most directly with cash for small, daily purchases like coffee, transit, and groceries.
Implications for Businesses and the Future
For retailers and businesses, this trend is a clear mandate:
Ensure NFC-enabled terminals are ubiquitous and functioning.
Promote mobile payment options at checkout to cater to consumer preference.
Invest in integrated systems that combine payment, loyalty, and customer engagement.
Looking ahead, the trajectory points toward continued growth. As Generation Z, who are digital natives, become core consumers and technologies like ultra-wideband (UWB) enable even more seamless “just walk out” experiences, mobile’s share is expected to climb further.
Conclusion: A Steady March Towards a Frictionless Future
The data confirms that Europe is in the midst of a gradual, irreversible shift towards mobile-centric commerce. While cash and cards will remain important for the foreseeable future—particularly in regions lagging in adoption—the convenience and security of smartphone payments are proving irresistible to a growing segment of consumers.
The Netherlands provides a glimpse of the near future for other European nations. The race is on for payments to become not just cashless, but cardless and contextless—a seamless, invisible part of the shopping experience.
