Europe’s digital payment market is poised for rapid growth, with total transaction value expected to increase at a CAGR of 8.81% from 2024 to 2028, reaching approximately USD 3.07 billion by 2028 and involving an estimated 666.4 million users. Unlike other regions, Europe lacks a single dominant eCommerce payment method across its diverse markets. Instead, payment preferences vary by country, with different cards and APMs taking the lead in different areas due to cultural, regulatory, and technological factors.

The shift away from traditional payment methods like cash on delivery (CoD) continues, with digital wallets projected at a CAGR of 12% from 2022 to 2026. Europe holds the world’s largest share of BNPL transaction value in eCommerce. Germany, for instance, sees low credit card usage due to cultural aversions to debt, whereas Sweden, home to Klarna, leads BNPL adoption with 24% of eCommerce spend. Poland and the Netherlands stand out for A2A payments, showcasing how bank partnerships can drive innovation in peer-to-business (P2B) payments.