Are you offering your EU customers their preferred payment options? Increasing conversion rates is all about reducing the barriers between a user and the action you want them to take. In the case of Ecommerce, that action is making a purchase, and one of the final hurdles is payment.
It takes a lot of work to get a customer to checkout. Losing them at that stage is painful. You’ve spent time, energy and money getting them to that point, so don’t lose them because they can’t pay with a method they trust. Which payment methods should you offer though? The most popular options vary from country to country, so we’ve put together a list of the most trusted payment methods in the EU.
Why Payment Preferences Matter in the EU
Unlike in the US where credit cards dominate, European shoppers use a wide variety of payment methods. Cultural and regulatory differences have created space for these local alternatives to flourish.
Good localisation builds trust with your customers and in turn, increases conversion rates. Payment methods are just one step towards localising your store, but a big one. You don’t have to abandon credit card payments altogether though. Card payments are increasing across the EU, but you probably don’t want to wait for them to become the mainstream.
Popular Payment Methods Across the EU
Used in: Most EU countries
What is it? SEPA (Single Euro Payments Area) Direct Debit allows customers to make direct bank transfers across borders within the EU. It’s already widely used for recurring payments like subscriptions and is increasingly used for buying online.
Why offer it? It offers low transaction fees and is familiar to many EU consumers, especially in countries like Germany and the Netherlands.
2. iDEAL
Used in: Netherlands
What is it? iDEAL was made by a group of Dutch banks to facilitate ecommerce payments. It allows Dutch customers to make direct transfers from their bank accounts during the checkout process. It’s the most popular payment method in the Netherlands, accounting for 70% of the market in 2023. 70% is a huge market share anyway, but when you consider that more people in the Netherlands shop online than any other country on earth.
Why offer it? If you’re targeting Dutch customers, iDEAL is a must. It’s fast, secure, and customers are very comfortable using it.
3. Klarna
Used in: Sweden, Germany, Austria, and more
What is it? Founded in 2005, Klarna is a well-known and trusted payment method. Famous for its “buy now, pay later” offers, Klarna also facilitates upfront payment. Klarna is hugely popular in Northern Europe. By 2011, Klarna processed 40% of all ecommerce sales in the company’s home country, Sweden.
Why offer it? Offering a flexible “pay later” option appeals to consumers who want to try products before committing to a payment, which can increase conversion rates and reduce returns. It’s a widely known brand name that shoppers trust.
4. Bancontact
Used in: Belgium
What is it? Bancontact is Belgium’s most popular debit card system, allowing customers to pay through direct bank transfers.
Why offer it? Belgians are more likely to trust and complete purchases using Bancontact, making it essential if you’re targeting this market.
5. Carte Bancaire (CB)
Used in: France
What is it? Carte Bancaire is a popular local debit card used by over 60% of French consumers. Though Visa and Mastercard are accepted, many French customers prefer using Carte Bancaire for their transactions. CB covers all kinds of payments online, from subscriptions to one-click payments.
Why offer it? France is one of the largest eCommerce markets in Europe, and offering Carte Bancaire helps build trust with French shoppers.
How to Implement Multiple Payment Methods in Your Online Store
To cater to diverse EU payment preferences, it’s crucial to offer a range of payment options at checkout. Here’s how you can do that:
Work with a payment gateway that supports local options: Popular providers like Stripe, Adyen, and Mollie support many of these local payment methods. They allow seamless integration, ensuring you offer the right choices based on the customer’s location.
Enable geolocation-based payment methods: Automatically display payment options based on the shopper’s country. This reduces clutter and ensures customers see the most relevant options for them.
Optimise for mobile payments: Many of these payment methods, especially in regions like Sweden and the Netherlands, are optimised for mobile. Ensure your checkout process is mobile-friendly to avoid losing potential customers.
The Impact of Offering Local Payment Methods
Studies show that offering localised payment options can significantly increase conversion rates. A report by Nielsen found that 40% of European consumers have abandoned a purchase because their preferred payment method wasn’t available. By aligning your payment options with local preferences, you create a smoother checkout experience, increase trust, and reduce cart abandonment.
Expanding into the EU presents a tremendous opportunity for eCommerce growth, but ensuring you cater to regional payment preferences is key to success. By offering popular local methods like SEPA, iDEAL, Klarna, and others, you can boost customer satisfaction and conversions, making your cross-border sales efforts more effective.
