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Future Prospects of Card Payment in Europe
Technological innovations combined with the new legislation will continue to optimise and influence the card payment landscape in Europe.
FREMONT, CA: The European payment space has undergone a profound transformation. Card payments have also made a considerable contribution to the digitalisation of commerce. Card usage is growing significantly in Europe. In 2019, nearly 70 billion payments were made. Cards were the most used electronic payment method, equalling 52 per cent of all non-cash transactions in the EU.
Cards play a significant role for European citizens and businesses to conduct transactions. Thus, Europe continues to advocate the use of cards strongly. Today, cross-border card payments in Europe are made through two international card payment schemes. To ensure cross-border acceptance, card schemes are relying upon co-badging with international card schemes. Furthermore, new technological and regulatory developments are paving the way for changes in card payment market arrangements by increasing competition between different payment solutions.
[vendor_logo_first]Furthermore, cards are also the growing cashless payment tools, with the number of transactions more than doubling, says the report. This rapid growth has fuelled by the introduction of contactless cards in recent years. Due to the convenience it provides for users, contactless card payment provides a stronger incentive to use electronic payments at the point of sale and replace low-value cash transactions. Recently, the development of mobile payment solutions and digital wallets has forced the card industry to adopt EMV specifications. This resulted in stronger customer authentication making the market competitive in terms of security and diversity of payment platforms. Tokenisation is another technology that improves the safety of card payments which replaces the primary account number with a value which can be used in a limited way. This enables the safe storage of card details.
The payments market in Europe is becoming more competitive and innovative, with players wishing to develop efficient and appealing solutions to attract users. Leading players in payment and card industry acknowledge that innovation paves the way to convenient and secure solutions. Payment cards are also perceived as a convenient and secure way of making payments. Therefore, it comes as no surprise that cards are widely used and the fast-growing electronic payment method in Europe.
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