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You’d be hard-pressed to think of a single adjective that could capture the incredible diversity of the European market. Home to 27 countries, 24 official languages, and around 160 distinct cultures, the European Union (EU) is a wealth of opportunities for e-commerce merchants who can strategically adapt to local preferences.
The EU operates as a single market, allowing free movement of goods and services all over Europe. This interconnectivity promises unique advantages for merchants – once established in one country, it’s relatively easy to expand across the region. Between 2022 and 2023, European cross-border e-commerce sales spiked 30% to reach a record high of EUR 237 billion, signalling consumers’ fast-growing appetite for cross-border shopping.
At the same time, shopping habits and payment preferences vary widely from country to country. As the region accelerates its transition from cash to cashless payments, different payment methods are winning popularity in different markets.
In Germany, digital wallets and Buy Now, Pay Later (BNPL) are top choices for online shopping; in France, local cards still dominate. Eastern European markets like Poland, which are gaining attention as untapped frontiers for merchants, are turning to local methods such as A2A payments.
This growing diversity points to key barriers in payment standardisation for cross-border e-commerce. The challenge for merchants lies in gaining an edge by providing consumers with localised payment methods, while keeping operations streamlined and efficient across the region.
For businesses expanding across the EU, the ability to develop a seamless payment experience that appeals to varied local preferences will increasingly be a make-or-break factor for success.
Market overview of the EU
Key insights for online merchants
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GDP and demographics
The EU is the world’s third-largest economy, with a GDP of EUR 17 trillion. As of 2024, its population is over 449 million.
Within the region, Germany, France, Italy, and Spain are the major economic powers with a combined GDP of EUR 10.2 trillion — close to two-thirds of the EU’s economic output. The four countries form a core market of 258 million people combined, making up 57.6% of the region’s total population. This makes them prime entry points for merchants expanding into the EU market.
In particular, Germany takes the top spot of the EU’s largest economy. Germany had a GDP of USD 4.53 trillion in 2023 and a population of 83.28 million.
The European population is highly digitally connected, with a 90% internet penetration rate and strong digital infrastructure. The EU has 187 million e-commerce users, with average spending per capita at USD 1,910, exceeding the global average of USD 1,380.
Digitalisation is particularly high in the major EU economies, with France and Spain exceeding 90% Internet penetration. Germany leads with 67 million Internet users, contributing to a vast digital market of over 217 million users.
Economic drivers
The services sector primarily drives the EU’s major markets, accounting for 60% to 70% of the economy.
Employment rates vary: in 2023, Germany's unemployment rate was 3.1%, while France and Italy had 7.3% and 7.6%, respectively. Spain's unemployment was at 12.2%, a significant improvement from the 27.16% peak in Q1 2013, due to economic recovery, government stimulus, and labour reforms.
The EU’s biggest economies are also major players in global trade. Germany’s imports totalled USD 158.3 billion in 2023, solidifying its status as the EU's largest economy. Other major EU economies, like France, have smaller import volumes but show strong consumption momentum, reflecting high demand for imported goods and a significant customer base for cross-border e-commerce.
Consumer and payment trends
European consumers have high purchasing power, especially those living in economic powerhouses like Germany and France. In 2023, German households had an average annual income of $70,074 and spending of $56,201. France’s consumption levels are not far behind.
Italy and Spain have slightly lower incomes than Germany and France but still remain high. Household expenditures in major EU economies surpass 80% of their income, with Italy nearing 90%. This high-income spending pattern indicates strong purchasing power and elevated consumer expectations for quality and service, creating favourable conditions for premium products in the EU market. 
This strong purchasing power translates well to the widespread appetite for online shopping. 300 million people make online purchases in the EU, with those aged between 25 to 44 making up the lion’s share of shoppers. In 2024, Europe’s e-commerce market achieved USD 529.8 billion in revenue, and this number is expected to surge to USD 811 billion by 2029.
As more consumers shop online, payments habits are shifting towards digital methods as well. In 2024, EU consumers made over four times more online payments as compared to 2019.
Cards and e-payment solutions are two of the top digital payment methods in the region, although preferences can vary significantly from country to country. For example, 76% of consumers in the Netherlands report using e-payment solutions like e-wallets and mobile apps, while only 33% of consumers in Portugal use them.
Key government initiatives fuelling the rise of cashless payments in the EUGiven the sheer diversity of the EU, the push to unify payment systems across countries has been a necessary enabler for cashless payments. Payment Services Directive In 2007, the EU introduced the Payment Services Directive (PSD1) to create a single, unified market for payments across the region. Before PSD1, payment systems varied widely between countries, which made cross-border transactions slow and expensive. PSD1 laid the legal groundwork for standardising and modernising the EU’s payment systems, making digital payments cheaper and customer-friendly. It also opened up the market to new types of non-bank payment service providers, fostering innovation in services like online payments and mobile wallets. In 2016, the EU set out an updated set of regulations in PSD2 to stimulate competition among e-payments players and make payments more secure. These revised rules enable fintechs to access customer data and banking infrastructure via APIs, driving more personalised consumer products and experiences. Single Euro Payments Area (SEPA) The PSD regulations accelerated the development of SEPA, a payment framework enabling consumers to make cashless euro payments to anywhere in the EU through credit transfer or direct debit. One key SEPA initiative has been the Instant Payments Scheme launched in 2017, which enables instant, 24/7 credit transfers between financial institutions in less than 10 seconds. Today, over 50 billion euro transactions happen through SEPA annually. Digital euro The European Central Bank (ECB) is currently in the preparation phase for the digital euro – a Central Bank Digital Currency (CBDC) that will be accepted in all euro area countries. If launched, this would create a secure, unified currency that could be used for any digital payment, free of charge. |
Consumer trends: How EU customers shop across borders
Key insights for online merchants
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EU consumers show strong purchasing power, with per-capita e-commerce spending far above global averages. For example, in 2023, Italy's per capita e-commerce spending reached US$2,970. This was significantly higher than the global average of US$1,380, showing consumers’ demand for quality goods and shopping experiences.
While physical retail remains popular, more EU consumers are going online in search of quality products at good value. For e-commerce merchants, this offers golden opportunities for growth potential – both in untapped “blue ocean” countries and in cross-border ventures.
Physical retail
Brick-and-mortar shopping remains important to European consumers. 92% of shoppers say they enjoy in-store shopping due to the ability to see, touch, and try before buying. In-store retail sales in Europe are forecasted to see a modest annual growth rate of 0.6% from 2025 to 2029.
Rather than being in competition with e-commerce, consumers see physical retail as a complement – researching online, checking out products in-store, then looking for the best deals and discounts.
E-commerce
E-commerce is gaining strong momentum in the EU as consumers actively shop online for both affordable and luxury goods. Statista forecasts that from 2025 to 2029, the EU e-commerce market will grow from US$456.1 billion to US$617.7 billion, with a CAGR of 7.88%.
The EU market's growth rate is lower than some emerging markets, but its large size and mature consumer base indicate significant potential for development. For merchants looking to expand internationally, it remains an appealing target market.
In the major EU economies, consumer spending closely correlates with purchasing power. In 2023, Germany led with US$95.4 billion in e-commerce revenue, retaining its status as Europe's largest e-commerce market, followed by France and Italy.
While Spain shows lower consumer spending, its growing market attracts brands targeting the mid-to-low-end segment, given its substantial low-to-middle-income population demanding affordable products. These four countries' e-commerce markets total US$258.7 billion.
Germany, the EU's largest e-commerce market, expects to grow its e-commerce users from 42.5 million in 2023 to 51.8 million by 2029, a 22% increase. The French market is also impressive, with an increase of over 30%. Merchants can look to these markets for stable expansion and quality users with strong purchasing power and mature consumption habits.
For merchants seeking new markets in Europe, the growth potential of smaller EU economies cannot be overlooked. Central and Eastern European countries such as Poland, Romania, the Czech Republic, and Slovakia are emerging as e-commerce “dark horses” in the EU.
These countries receive less attention than mature Western markets but offer the advantages of less competition and rich opportunities. Local consumers are price-sensitive yet tolerant of product quality. As the Internet infrastructure improves and cross-border shopping develops, these markets are expanding, offering untapped potential as blue ocean markets that merchants can strategically unlock.
The EU’s online shoppers
EU shoppers in different markets show distinct preferences, making it crucial for merchants to localise their products, pricing, and promotion methods.
In 2023, Italians spent US$2,970 on e-commerce – over twice the global average. This points to a strong preference for high-quality fashion and luxury goods, a mature payment system, and open consumer concepts. Germany and France also exceed EU averages in consumption.
Italian and Spanish consumers lead in online shopping, with 86% and 84% making monthly purchases. Their focus on immediate access to lifestyle products and strong social sharing highlights a rising "social shopping" trend. Conversely, French and German consumers favour conservative shopping habits, valuing experience, service quality, and brand reputation.
Motivations and concerns in online shopping
Brand loyalty is low among European consumers, with 59% choosing a brand based on price. German consumers lead in price comparison tool usage (35.5%), emphasising value and rational spending.
Private-label products and discount stores are popular. Over 10% of consumers in all four countries buy second-hand items, with 75% in France purchasing used goods such as clothing, toys, and furniture.
Clothing leads online purchases among these countries, particularly in Spain, where 78% of consumers buy apparel. Spanish shoppers also prefer leisure and entertainment products at a rate of 78%. Each country has unique third-preference categories: Germany favours health products (26%), France prefers beauty products (39%), Italy selects books and media (28%), and Spain chooses travel products (74%).
The EU's integrated market offers unique opportunities for cross-border e-commerce, and many consumers are embracing the convenience of cross-border shopping. But given consumers’ localised preferences and habits, how can merchants expand effectively across the region?
From local to regional: Taking on cross-border e-commerce in the EUEuropean consumers are making a habit of online shopping beyond their national borders. According to 2022 data, Germany led cross-border e-commerce with US$33.5 billion in revenue. Meanwhile, Italy showed the highest cross-border ratio at 39.2% of total e-commerce revenue.
Italian consumers, in particular, have a robust appetite for cross-border e-commerce. Key categories include apparel, electronics, and cosmetics, with home and garden, sports equipment, and pet supplies also showing growth potential.
While EU shoppers strongly favour purchasing from national sellers, they display a slight but consistent preference for sellers from other EU countries as compared to sellers from non-EU locations. E-commerce merchants with cross-border operations can gain an edge by capturing both local and regional opportunities.
One efficient approach to region-wide operations is the "single-point entry" strategy. Merchants can establish operations in one member state and manage VAT compliance through the EU’s One-Stop Shop scheme, thereby operating efficiently across the EU. Partnerships with cross-border e-commerce platforms can make regional expansion easier. Platforms like Amazon Europe, Allegro, and Cdiscount facilitate multi-country operations with unified backend management. This "single breakthrough, multi-point replication" model enables low-cost market entry while achieving economies of scale and risk diversification. This regional strategy offers flexibility for localisation based on market characteristics. In French and Spanish markets, merchants can prioritise direct cross-border models, maintaining brand identity while using international logistics and local payment methods. The German market may need deeper localisation, including local warehousing, native language support, and possible partnerships with local platforms.
China is the main source of cross-border goods for major EU economies, with over one-third of consumers in all four countries buying from Chinese sellers. Spanish consumers lead with 54% purchasing from Chinese merchants, followed by France at 46%. Major Chinese platforms in the EU market include AliExpress, Temu, SHEIN, and TikTok, with Temu ranking as the fourth-largest platform in Germany during Q4 2023 and Q1 2024. Overall, cross-border shopping rates in major EU economies are much lower than domestic rates, indicating strong growth potential for Chinese merchants in the EU market.
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Digital behaviour
Smartphone penetration and internet access are generally high across the region. In 2023, Western Europe had 459 million smartphone subscriptions, with Germany ranking the highest for number of smartphone subscriptions.
As of 2024, around 94% of all households in the EU have internet access. While this varies across countries, Europe’s smaller economies are making great strides towards digital inclusion. For instance, less than 60% of Bulgarian and Romanian households had internet access in 2014; 10 years later, over 90% of households are connected to the internet.
EU consumers are frequently online, with 88% using the internet at least daily in 2024. One of the top three most common online activities is finding information about goods and services, reflecting a keen interest in online shopping. Another 67% used the internet for banking, while 64% participated in social networks.
Payment preferences in the EU: One market, many local preferences
Key insights for online merchants
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While cash remains popular in the EU, all countries are accelerating their transition to digital payments. According to Statista's latest data, EU digital payment penetration is expected to steadily increase from 36.65% in 2021 to 59.47% in 2029. During this period, the transaction volume of digital volumes is set to grow substantially from US$670 billion in 2021 to US$3.46 trillion.
Germany leads EU economies in digital payments with a 51% penetration rate. Italy lags at 31%, while Spain, with a smaller transaction volume, shows potential at 39%.
In terms of digital payment users, Germany leads the EU market with 43.3 million users. Notably, Italy, despite having the smallest user base, maintains higher transaction volumes than Spain and France.
Analysis of per capita digital payment transactions in major EU economies reveals that Italy's per capita amount reached US$7,950 in 2023, driven by consumers' preference for digital payments for luxury fashion, premium food, home furnishings, and travel. By 2029, this is expected to rise to US$19,310. Spain's digital payment per capita is also projected to grow.
Although Germany has the largest user base and highest market penetration, per capita amounts are lower due to the continued importance of cash payments. Digital payments in Germany are primarily used for affordable daily necessities, food, electronics, and books, which, despite high purchase frequency, do not significantly increase per capita consumption.
As EU consumers turn to cashless payments, a wide variety of payment methods are emerging across the region. Here’s a look at some of the most popular payment methods that shoppers expect:
Cards
Card brand preferences vary across EU countries. In France, Cartes Bancaires leads with a 91% market share, indicating strong consumer trust. Germany prefers Girocard (76%), while Visa and Mastercard hold only 12% and 10%. In Spain, Visa (56%) and Mastercard (42%) dominate. Italy features a balanced mix, with Bancomat over one-third of the market.
For cross-border merchants, supporting local networks is vital in France and Germany, while international cards are key in Spain and Italy.
Card payment usage also varies by region. In e-commerce, Spain leads in credit card usage (26%), while France and Italy tie for the highest use of debit and prepaid cards (25%). Germany's card usage is relatively low, reflecting consumer conservatism and a historical preference for cash due to inflation fears.
Digital wallets
Digital wallets are seeing rapid growth in e-commerce across all major EU markets. While Germany and France had relatively low digital wallet usage in 2023, both countries are experiencing the fastest growth in this category.
The most popular wallets across the four countries are PayPal, Apple Pay, and Google Pay. In Spain, local wallet Bizum also holds a significant share.
Bank transfers
Bank transfers are particularly common in Germany and Spain, accounting for over 20% of e-commerce payments in 2023. In comparison, France (13%) and Italy (9%) show lower adoption, with France expected to grow modestly to 14% by 2027.
Buy Now, Pay Later (BNPL)
BNPL adoption varies widely. It is especially popular in Germany, where it is seen as a credit card alternative. In 2023, BNPL accounted for 21% of e-commerce payments, tied with Sweden for the highest global usage. This popularity stems from instalment and deferred payment options, helping consumers manage large expenses, especially relevant amid rising inflation. Italy and France, however, show relatively low BNPL adoption.
A diverse payment landscape with varied local preferences
The EU is pushing for a cost-effective payment system by reducing reliance on Visa and Mastercard and promoting local payment methods. A2A (account-to-account) payments, digital wallets, and Open Banking are rising to create a safer, more convenient network, reshaping the region's payment landscape. Consequently, card-based payments are expected to decline.
E-commerce payment methods in major EU countries are becoming diverse. Digital wallets lead in many markets, with Antom supporting the top three in Germany, France, Italy, and Spain. Preferences differ: Germans prefer bank transfers and Buy Now, Pay Later, while France has a mix of credit and debit cards and wallets.
In Eastern Europe, local payment methods are prominent. Poland favours A2A payments like Blik, PayU, and Pay by Link; Czech consumers prefer bank transfers; iDEAL in the Netherlands and Open Banking in the UK dominate. Notably, Vero, a growing digital wallet, integrates online and offline scenarios, holding about 75% of the pan-European A2A market, indicating growth potential.
For merchants, this diversity can pose challenges in standardising the payment experience in cross-border e-commerce. Right now, a gap exists between what consumers prefer to pay with and the payment methods that merchants support, particularly in bank transfers, BNPL, and digital wallets.
This gap directly impacts sales – when European consumers cannot pay with their preferred method, they are likely to abandon the purchase. To succeed in the EU market, merchants must offer a wide range of localised payment methods. Beyond localising for each country’s shopping habits and preferences, it’s crucial to localise the payment experience as well.
The right payment solution provider can help merchants cater to local nuances. Cross-border payment solutions can provide comprehensive coverage of popular and emerging payment methods at lower cost, enabling businesses to maximise the benefits of localised operations.
Case study: How Xide International is taking on the European marketXide International is a global fashion brand expanding rapidly across the European and American markets. Localisation is a core approach for the brand: it focuses on developing clothing that appeals to 20- to 30-year-olds in these target markets. For each market, it also tailors its product strategy, website design, and payment methods to match consumer preferences. To cater to European consumers’ diverse payment habits without hassle and high costs, Xide International turned to Antom as an all-in-one payment solutions partner. “Antom integrated multiple payment channels for us, reducing costs and allowing us to focus more on product development and operations,” shared Hang Wen, CTO of Xide International. “With Antom’s support, we also improved channel management and enhanced payment stability.” Source: BusinessWire |
Navigating the challenges of cross-border payments in the EU
As a single market with highly diverse consumer habits, the EU’s payments landscape undoubtedly presents unique challenges for businesses. Merchants breaking into the EU typically face four key challenges in cross-border payments:
- High transaction costs: Cross-border payments involve currency conversion fees, compliance costs, and bank intermediary fees, with countries like Italy seeing especially high bank charges.
- International fraud prevention: Security threats such as fraud, identity theft, and cyberattacks are increasing.
- A complex regulatory environment: EU countries have diverse regulatory requirements, covering anti-money laundering mechanisms, data privacy, and licensing. For example, France has a highly detailed regulatory framework emphasising interoperability, transparency, and security.
- Slow settlement speeds: Traditional bank transfers can take two to five business days, disrupting cash flow and customer experience. In Spain, despite the SEPA (Single Euro Payments Area) adoption, complex verifications and multi-bank routing still cause delays.
To address these cross-border payment challenges, merchants should consider the following measures:
Focus on fee transparency
In EU cross-border payments, merchants should select payment service providers offering simple, transparent pricing and competitive rates to better optimise operations, control end-to-end costs, and avoid profit erosion from hidden fees.
Leverage payment technology
Technological innovation is providing breakthrough solutions for EU cross-border payments. API and blockchain technologies have reduced traditional two- to five-day payment cycles to near real-time while significantly lowering transaction costs.
AI serves a dual function in the payment ecosystem: providing precise fraud detection systems to meet strict EU security requirements while automating compliance processes to help merchants navigate complex EU regulations.
Select reliable payment service partners
Merchants need to develop systematic solutions to address these challenges, as the diagram below shows:
When building a comprehensive payment strategy, choosing the right payment partner is crucial. IDC's 2024 payment survey highlights key factors merchants should consider:
Payment service providers need to offer modern features, software, and interfaces to improve overall efficiency, particularly important for the digitally advanced European market. Flexibility and system functionality are also crucial, as payment preferences vary significantly across EU regions. Additionally, payment providers should proactively offer clear, transparent fee structures without hidden charges, enabling merchants to accurately forecast and manage payment costs
Winning in one of the world’s largest e-commerce markets
The EU presents a massive opportunity for e-commerce merchants ready to operate regionally while thinking locally. With strong digital infrastructure, high consumer purchasing power, and a growing appetite for cross-border shopping, the region is ripe for merchants who can offer both value and local relevance.
But market access is only half the equation. Success in the EU depends on how well you can adapt to diverse shopping habits and payment preferences. From digital wallets and BNPL to local bank transfers, aligning with the way European consumers prefer to pay is essential for converting interest into sales.
For merchants looking to scale efficiently, having the right regional payments infrastructure and choosing reliable payment partners can make or break expansion success. Providers like Antom, with deep local expertise and broad market coverage, offer the flexibility and support needed to navigate this complex landscape.
In the EU, localising the payment experience isn’t just a nice-to-have – it’s a competitive necessity. Businesses that get it right stand to unlock long-term growth across one of the world’s most dynamic consumer markets.
How Antom can help you with payments in the EU
Antom has comprehensive local payment method coverage across major EU countries, offering an integrated solution for diverse payment needs. Our experienced teams draw on extensive market knowledge and expertise to provide customised payment services to merchants.
Here are some of the key benefits of working with Antom:
- Quick market coverage
Antom has powerful market resources and an extensive network, enabling businesses to quickly cover the mainstream markets. Through in-depth market analysis and flexible strategic planning, we ensure merchants can reach a broader target audience quickly, increasing brand visibility and market share. Whether you're an emerging business or an established brand, Antom can help accelerate your market penetration.
- Industry-specific, customised solutions
Each industry has unique needs and challenges. Through a professional team, Antom provides tailored solutions for specific industries, improving operational efficiency and market competitiveness and supporting businesses in achieving sustainable growth. This personalised service meets current customer needs and anticipates future trends, ensuring your business remains ahead of the curve.
- Safe and reliable technology and risk control
In business activities, financial security and risk control are among the top concerns for companies. Antom boasts advanced technological capabilities, offering safe and reliable financial services. Our risk control system is rigorously tested, ensuring transparency and reliability in all transactions. Additionally, our fund management strategies are carefully designed to minimise risks and safeguard clients' financial security, allowing them to focus on their business with peace of mind.
- High-quality, personalised concierge service
In partnership with Antom, clients will experience unparalleled service. Our team not only provides expert consulting support but also offers comprehensive follow-up services. Our goal is to be the most trusted partner for our clients, providing home-like care and support throughout the partnership.
- Rich local market experience
Antom has extensive market experience in various regions. Our team understands the local market operations and cultural habits, enabling us to provide practical market strategies. This deep local expertise allows us to help clients quickly adapt and integrate into new markets, minimising entry barriers and ensuring successful development in different market environments.
Contact us today to start accepting payments from consumers in the EU.
