The True Value
of Cards
Research on the value and cost of cards in today’s dynamic and vibrant payments ecosystem. Based on a survey of merchants and consumers in Europe.
Payments are the lifeblood of the European economy
Key Highlights
Cash and merchants… a complicated relationship
Cash remains the most common payment method in Europe. However, its overall share of total transactions is declining.
75% of European merchants prefer digital payments over cash, and 65% would even like to have the ability to refuse cash.
What merchants really want
Safety & security are the main priorities for merchants when choosing payment methods, followed by customer preference, reach, merchant convenience and cost.
Merchants value cards because of:
- guaranteed payment
- high security
- a better purchase experience.
Bank transfers, including instant, are behind relative to other payment methods, though they are gaining popularity in countries where popular instant payment brands exist, such as in Poland and Sweden.
Balanced payments strategies
Developing an all-encompassing payments acceptance strategy is critical for merchants – especially small merchants – to drive revenue and reduce cost.
While managing transaction costs is important, other elements such as high approval rates, safety, fraud protection, and an attractive customer journey are even more important.
When asked about their payments acceptance strategy, security, and cost reduction are in the lead, while “increasing conversion rates”, which can significantly drive sales, is only a focus point for 20% of merchants.
Market evolution: winners & winners
The European payments environment is a vast, multifaceted one, with a wide variety of brands and solutions available – serving the different needs of different merchants and consumers. Merchants welcome this diversification.
79% of merchants are happy with the payment solutions available to them.
85% of merchants believe that accepting a wide range of solutions increases sales.
Mobile payments in Europe have tripled over the last three years. Mobile wallets will account for up to 30% of e-commerce transactions in Europe by 2024. 77% of merchants think that mobile payments have been beneficial for their business.
Card payments: cost and value
Cost is not the most important variable when choosing between payment methods. Security, customer experience, reach and convenience are key drivers of merchant preference.
87% of merchants said the value of cards outweighs the cost. The vast majority of merchants are satisfied with the fees they pay for cards.
Card fees have remained stable over the years – but can significantly differ between transaction and merchant type. About 67% of merchants say the cost has decreased or has remained the same in the last years.
1 out of 4 merchants unfortunately indicate they still do not understand the fees that they pay.
Empowering merchants
The payments ecosystem is evolving rapidly and staying up to speed can be a challenge. Initiatives aimed at sharing information and raising awareness of the different payment methods and networks available for merchants should be championed. They are key to further empowering merchants, increasing sales, improving conversion rates, and broadening the customer base.
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This report is based on a survey commissioned by Payments Europe and conducted in May 2023. The survey was completed by 1560 merchants working in physical and online retail in France (264), Germany (252), Italy (263), Spain (271), Sweden (242) and Poland (268). This survey was also conducted in 2021, 9th to 15th July with 648 merchants. Breakdown by country: France (109), Germany (110), Italy (110), Spain (110), Sweden (106) and Poland (103). Both 2021 and 2023 results have been compared where relevant. For both studies, the countries were weighted to ensure an even representation. Company size in-country was also closely examined to enable comparisons. The report was further completed with desk research based on publicly available sources, from public and private sector
True Value Country Reports
Payment Europe regularly conducts research on merchant and consumer sentiment and preference across the region. Local data has been extracted in individual country reports.