Imagine a world where your wristwatch isn’t just for telling time, but also for buying your morning coffee. Sounds futuristic? Well, it’s already happening—and faster than you might think. But here’s where it gets controversial: while some countries are embracing this digital shift, others are lagging behind, raising questions about what’s holding them back.
Technology is reshaping how we live, and shopping is no exception. Across Europe, mobile payments are on the rise as more people turn to smartphones and smartwatches to make purchases. In 2024, a staggering 6% of all point-of-sale (POS) payments in the euro area were made through mobile apps, accounting for 7% of the total value. To put that in perspective, in 2019, both figures were just 1%, according to the European Central Bank (ECB). That’s a massive leap in just a few years.
Mobile payments aren’t limited to phones—they include smartwatches, fitness bands, and other smart devices, all powered by digital wallets or apps. And this is the part most people miss: while the trend is growing, it’s not uniform across Europe. Some countries are sprinting ahead, while others are barely out of the starting gate.
In 2024, 75% of daily payments in the euro area were made at POS terminals, with 21% online and 4% as person-to-person (P2P) transfers—think sending money to a friend. When it comes to value, 58% of payments were at POS, 36% online, and 6% P2P. But here’s the twist: cash still reigns supreme in terms of transaction volume, making up 52% of all payments, though it only accounts for 39% of the total value. Cards, on the other hand, are used for 39% of transactions but represent 45% of the value, suggesting they’re preferred for bigger purchases.
Mobile payments, meanwhile, make up 6% of transactions and 7% of the total value—a small slice, but one that’s growing fast. Here’s the bold part: the Netherlands is leading the charge, with nearly one in five POS transactions (19%) made via mobile devices. Ireland and Finland aren’t far behind, with 10% shares. But countries like Slovenia, Croatia, and Belgium are trailing, with only 3% of transactions using smart devices.
Among the EU’s ‘Big Four’ economies, Spain stands out with 7% mobile payments, above the euro area average. Germany matches the average at 6%, while France and Italy lag behind. In terms of payment value, the Netherlands dominates with a 17% share, followed by Spain at 12%. Croatia, Belgium, Portugal, and Austria, however, record the lowest shares.
So, what’s driving this divide? Digital literacy, perceptions of speed, and convenience play a huge role. For many, carrying cash or cards feels outdated when a tap of a smartwatch will do. But here’s the counterpoint: for non-users, security fears—like hacking (28%) and fraud (27%)—are major hurdles. This raises a thought-provoking question: Are these concerns justified, or are they holding back a practical, efficient way to pay?
What do you think? Is the future of shopping truly in our pockets—or on our wrists? Let’s debate in the comments!
