Europe Fintech Digital Payment Market Size | 2019-2033

Europe Fintech Digital Payment Market Growth and Performance

• In 2023, the Europe fintech digital payment market was valued at US$ 1.85 Trillion, reflecting a year-on-year growth rate of 25.5%.
• By the end of 2033, the Western Europe fintech digital payment market size is forecast to reach US$ XX.13 Trillion, registering a CAGR of 30.6% during the forecast period.

Europe Fintech Digital Payment Market Outlook

The European fintech digital payment market is undergoing a significant transformation, driven by evolving consumer behaviors, regulatory initiatives, and technological advancements. In 2024, non-cash payments in the euro area increased by 7.4% year-on-year, reaching 72.1 billion transactions, with card payments accounting for 56% of this volume.

In Italy, digital payments have surpassed cash for the first time, marking a pivotal shift in consumer preferences. The country recorded €481 billion in digital transactions, representing 43% of total consumer spending. Contactless payments have become predominant, comprising nearly 90% of in-store digital transactions and totaling €291 billion. Mobile and wearable payments have also seen substantial growth, with a 53% increase, reaching €56.7 billion in 2024.

The Buy Now, Pay Later (BNPL) model is gaining traction in Italy, with platforms like Klarna and Scalapay becoming popular alternatives to traditional credit cards. BNPL transactions surged by 46% in 2024, reaching €6.8 billion, driven by younger consumers seeking flexible payment options. Local payment solutions such as Satispay and BANCOMAT Pay have enhanced merchant acceptance and reduced friction, particularly in the €51 billion e-commerce sector, where e-wallets account for 35% of transaction volume.

France is setting a benchmark for integrated digital payment growth, supported by strong government initiatives. With €3.26 billion allocated under the EU’s NextGenerationEU plan, France is rapidly digitizing its economy, from public services to payment infrastructure. The rise of contactless payments, mobile wallets, and biometric authentication has redefined everyday transactions. Traditional banks like BNP Paribas and Société Générale are competing with digital-native neobanks such as Lydia, Qonto, and Memo Bank. Lydia holds a 21% share of the neobank market, offering intuitive, mobile-first experiences. Open Banking and API-driven services, enabled by PSD2 and the upcoming PSD3, are fostering a secure and agile fintech environment. France's e-commerce market is projected to exceed €200 billion by 2025, supported by payment orchestration platforms that optimize transaction routing and compliance in real time.

Germany, traditionally reliant on cash, is gradually embracing digital payments. The COVID-19 pandemic accelerated this shift, especially among younger and urban populations. Contactless card use and mobile wallets like Apple Pay and Google Pay are on the rise, although adoption remains slower compared to Italy or France. In 2024, only 21% of Germans reported using mobile wallets, reflecting a digital divide based on age and income. Cash still accounts for over half of point-of-sale transactions, but younger demographics are expressing frustration with cash-only policies. BNPL adoption is increasing among Gen Z, though it raises concerns over financial discipline. The Weizenbaum Report 2025 highlighted the risk of missed payments among low-income users, calling for better financial education and oversight. Germany's policy framework is evolving, with the government supporting SEPA Instant Credit Transfer (SCT Inst) and pushing for mandatory instant payments across the EU by 2025. However, instant payments represented only 3.5% of transactions in 2023, indicating room for growth. The digital euro project is another critical pillar of Germany’s fintech strategy, offering a secure and inclusive alternative to cash and aiming to strengthen Europe’s financial independence.

In Eastern Europe, the fintech digital payment market is experiencing remarkable growth, driven by rising smartphone adoption, regulatory evolution, and consumer preference for seamless, cashless transactions. Digital wallets and mobile payment apps are becoming the primary interface for daily financial activities across countries like Poland, Romania, Ukraine, and the Baltics. Apps like Revolut, Paysera, and Wise are evolving into super apps offering integrated services like insurance, investment, travel booking, and cryptocurrency trading. The digital payments ecosystem is also witnessing the rapid rise of embedded finance and Banking-as-a-Service (BaaS). From ride-hailing services offering instant loans to e-commerce platforms with BNPL options, non-financial brands are increasingly embedding financial capabilities into their offerings. The European BaaS industry is projected to grow from $X.9 billion in 2024 to $X6.1 billion by 2033. Eastern Europe is becoming a hub for BaaS startups that enable everything from digital onboarding to automated invoice reconciliation.

A standout feature of Eastern Europe fintech innovation is its embrace of cryptocurrencies and central bank digital currencies (CBDCs). Ukraine, for instance, has been aggressively piloting its digital hryvnia in response to the growing demand for modern, secure, and transparent payment infrastructure. Turkey is also leading digital lira initiatives as part of its broader digitization strategy. Fintech players are increasingly integrating crypto payments for remittances, online commerce, and B2B settlements, pushing the boundaries of traditional finance. Security remains a top priority as digital adoption accelerates. Firms are deploying multi-factor authentication (MFA) and AI-powered fraud detection systems, ensuring transaction integrity amid rising volumes. The adoption of PSD3-compliant frameworks further boosts consumer trust by ensuring transparency, real-time reporting, and data privacy. With over 60% of online payments now digital, the demand for secure, frictionless experiences has never been higher.

Eastern Europe is also seeing explosive growth in contactless payments, facilitated by increased transaction limits and the proliferation of wearable tech and NFC-enabled smartphones. In Poland, contactless now accounts for over 75% of in-store payments, making it one of the most advanced markets in Europe. Similar trends are unfolding in Czechia and Hungary, where banks and telecoms are collaborating to promote digital wallet usage. The convergence of biometric authentication, mobile-first UX, and open banking APIs is allowing consumers to transact instantly and intuitively. Beneath this consumer-facing.

Europe Fintech Digital Payment Market Scope

Europe Fintech Digital Payment Industry: Country Coverage