Digital payments? There is “significant space” to grow in Portugal
A digital ‘wallet’, such as a digital wallet, is an application that allows bank card data and payments with a cell phone, ‘table’ or computer, that is, a form of digital payment.
“It’s realizing that Portugal still has room for European countries comparing possible”, says Pereira, others pointed out that 70% of payments are ‘contactless’ [sem contacto] in the Nordic countries, while in Portugal it is around 40% (which includes ‘wallets’ and MB Way) during the pandemic, against 10% in the pre-covid period.
“Additionally, we see a set of ‘drivers’ [motores] “which will foster this growth”, which includes measures announced to increase digital literature in Portugal, such as a macroeconomic increase to increase the economy (GDP) in the coming years, “having a direct relationship with the number of proven transactions”, he argues.
In addition, there is the “expected increase in the market” of integrated commerce, the “convergence of the penetration rate of Internet use in Portugal with the European Union 2025”, among others, “so we believe that the use of digital channels will increase significantly”, considering the Boston Consulting Group (BCG) partner.
“Portugal, like European countries, has been building a positive trajectory regarding the adoption of digital payment means and ‘wallets’, although progressing at a slower pace”, but their use “is still lower than in other countries like the UK, Poland and Sweden”, he says.
“Which may be justified by the fact that as ‘digital wallets’ were also similar digits in Portugal later”, for example, Apple Pay in 2019, in other countries, however, MB Way was already a very popular reality” , Pedro Pereira mentions this gap.
The pandemic “worked as a facilitator of digital payments”, he points out, with 20% of the population claiming to have joined the MB Way and 13% to the bank’s application, during this mobile period, which led to a drop in cash payments, ” with 51% of consumers reducing their use of cash, with 9% not using it at all”.
In addition, Portugal “is one of the European countries where the use of digital channels is still expected to grow significantly”, together with Spain and Poland, it reinforces.
Pedro Pereira highlights that the role of ATMs “is greater in Portugal than in other similar geographies”, namely in terms of their use for simpler models and their greater capillarity.
“In Portugal, there is still very limited access to ‘Buy Now Pay Later’ (BNPL) solutions, but with the entry of new ‘players’, it will begin to provide more and more options to the consumer”, he considers.
In fact, last November, Klarna, a leading company in the industry, arrived in Portugal, “in partnership with four ‘online’ retailers (Trade in, SKLUM, Isto. and Black Peach) and providing a BNPL card that can be used in any a store” on the Internet, for example.
Close to 30% of ‘fintechs’ [financeiras tecnológicas] in Portugal “there are methods in remittance and transfer services” and “these solutions have revolutionized the way they are carried out, for example, with the use of devices such as ‘watch devices’ [relógios inteligentes]”.
However, cards with cards are still “the favorite method of consumers”.
For the head of BCG, “an increase in industry revenue is expected”, with new ‘players’ and more innovation, when asked about the main trends.
“The pandemic acted as an accelerant in the adoption of an electronic modification, which translated into a phase, without increase, of ‘contactless’ (contactless) payments and, later, in the adoption of digital payments such as ‘digital/mobile wallets’ in replacement of cards”, boss.
Within three years, in 2025, “it is expected that a total volume of ‘cashless’ transactions (without physical money) will be carried out of approximately 2,400 billion euros […] and total revenue value of approximately 2,800 billion euros”.
The competitive landscape “has become increasingly global with a substantial increase in ‘fintechs’, which put pressure on traditional ‘players’ (banks) who, in turn, already have higher regulatory pressure”, stresses.
payment countries such as Belgium, are being prepared to consider “measures, which are mandatory, eliminating payments in case of cases”, with around 70% of consumers and merchants complying with these measures.
“It is expected that the number of merchants who accept this type of payments will double in the next year”, he points out.
Already the BNPL segment is starting to be “increasingly common”, with every five European merchants accepting this option, the number that is expected to triple over the next year.
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