In 2024, Portugal’s e-commerce landscape is vibrant and diverse, with a wide array of payment methods shaping the digital market. From the dominance of card payments led by Visa and Mastercard, to the growing adoption of Buy Now, Pay Later (BNPL) options, Portugal’s consumers have embraced flexible and secure ways to shop online. Local systems like Multibanco and popular digital wallets such as MB WAY are at the forefront, while innovative solutions like Moey! and SIBS Pay further enhance the payment experience. Dive into this comprehensive exploration of Portugal’s payment methods and discover how digital transactions are transforming the market.
Payment by Card in Portugal
In Portugal, card payments dominate e-commerce. Visa and Mastercard lead, accepted by nearly all online merchants. American Express and Diners Club are present but less common.
Local banks like Caixa Geral de Depósitos, Millennium BCP, and Novo Banco issue most cards. These banks ensure secure online transactions through their robust platforms.
Credit cards are popular for their flexibility, while debit cards are preferred for everyday purchases. Merchants favor Visa and Mastercard for their widespread acceptance and reliability.
Payment by cash in Portugal
In Portugal, cash payments are not a primary method for e-commerce transactions. Consumers predominantly use cards for online purchases. However, there are some cash-related methods available.
One notable option is the Payshop service. Payshop allows consumers to make online purchases and pay in cash at physical locations. After selecting Payshop at checkout, consumers receive a payment reference. They can then visit a Payshop agent, typically found in convenience stores or post offices, to complete the transaction in cash.
MB WAY also indirectly supports cash payments by allowing users to top up their digital wallets with cash through ATMs. Consumers then use this balance for online purchases, although the method is more digital than cash-based.
Despite these options, cash payments for e-commerce are minimal compared to cards. Portugal’s digital payment infrastructure is well-developed, leading to a preference for card and digital payments. The country lacks a broad, dedicated local system specifically for cash payments online.
Local actors : Payshop
Payment by bank transfer in Portugal
In Portugal, bank transfers and instant payments are key methods for e-commerce transactions. They offer a secure and reliable way to pay. Many consumers prefer these methods due to their familiarity and ease of use.
Multibanco is the most prominent system for bank transfers. It allows consumers to make payments directly from their bank accounts. When purchasing online, consumers choose Multibanco as a payment option. They receive a reference number, which they use to complete the payment via online banking, mobile apps, or ATMs. Multibanco is widely accepted by e-commerce platforms in Portugal, making it a popular choice for online shoppers.
MB WAY is an instant payment service linked to Multibanco. It allows users to make instant transfers using their mobile devices. MB WAY integrates with e-commerce sites, enabling quick and secure payments. Consumers appreciate its speed and convenience, as payments are processed in real-time.
Portuguese banks also support SEPA Instant Credit Transfer (SCT Inst), allowing instant payments across Europe. This method is useful for cross-border e-commerce transactions. SCT Inst provides a seamless experience for consumers, offering immediate payment confirmation.
Bank transfers and instant payments are trusted by Portuguese consumers for their security. They reduce the risk of fraud, as transactions are directly linked to bank accounts. Additionally, these methods do not require sharing sensitive card information online, which many consumers prefer.
E-commerce platforms in Portugal often integrate these payment methods to cater to consumer preferences. Offering bank transfers and instant payments is essential for reaching a broad customer base. It helps build trust and increases conversion rates.
Local actors : Multibanco, MB WAY
Payment by BNPL in Portugal
In Portugal, Buy Now, Pay Later (BNPL) is growing rapidly in e-commerce. Consumers appreciate the flexibility it offers for managing finances. Several BNPL providers are active in Portugal.
Klarna is a leading international BNPL service widely used in Portugal. It partners with various e-commerce platforms, allowing consumers to spread payments over time. PayPal offers its Pay in 4 service, which lets consumers divide the total purchase amount into four interest-free installments.
Scalapay is another BNPL provider popular among younger consumers. It enables payments in three equal installments. Oney also have a strong presence. Oney, part of Groupe BPCE, partners with retailers and e-commerce platforms in Portugal. It offers BNPL services, allowing consumers to split their payments into installments.
Banco CTT offers BNPL services through its CTT Now! option, integrated into their broader financial offerings. Cetelem, part of the BNP Paribas Group, offers installment payment plans available directly through many retailers. Unibanco provides flexible payment solutions, including installment options through its credit services.
Payment by digital wallet and X-Pay in Portugal
In Portugal, local e-wallets play a significant role in digital payments.
Apple Pay and Google Pay are available in Portugal. These global digital wallets allow users to store their card information securely and make payments with their devices. They are particularly popular among tech-savvy consumers who prefer using their smartphones for purchases.
PayPal remains a strong player in Portugal’s digital wallet landscape. Many e-commerce platforms support PayPal, offering consumers a trusted and familiar payment option. It is widely used for both domestic and international transactions.
As a local player, MB WAY is the most popular, accounting for approximately 45% of all e-commerce transactions. With over 4.5 million users and integration with 28 banks, it is widely used for online payments, transfers, and even cash withdrawals. MB WAY’s dominance reflects its integration into everyday digital transactions, making it essential for merchants looking to capture the Portuguese market.
Moey!, a digital bank from Crédito AgrÃcola, offers a mobile-first experience, targeting younger users with easy payment options.
Payment methods in Portugal interesting you?
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