The Europe Digital Wallet market was valued at US$53.182 billion in 2020.
The market growth in this region is contributed to by the high penetration of smartphones supported by the high disposable income of people. The European digital wallet market growth is majorly attributed to the booming e-commerce sector in countries like the United Kingdom, France, and Germany, which has been contributing significantly to these countries’ GDP. In the United Kingdom, according to data from the Office for National Statistics, online-only sales in the country showed an impressive increase of 15.9% in 2017, while sales across physical stores witnessed an increase of just 2.3% compared to that in 2016. The high popularity of online purchases, coupled with lucrative offers by many digital wallet vendors, has fueled the penetration of digital wallets among customers, thus propelling the regional market growth of digital wallets.
Furthermore, the recent outbreak of the novel coronavirus disease has also increased the adoption of digital wallets among customers in many European countries. Nationwide lockdown imposed and stringent social distancing regulations enforced by the governments in European countries have pushed many customers away from cash transactions to digital wallets, thereby driving the overall market growth. Although the duration of the pandemic is still uncertain, good regional market growth is expected over the forecast period.
Market players in the European digital wallet market are continuously adopting various growth strategies to expand their customer base in this region, driving the regional market growth. For example, in June 2019, six prominent mobile wallets across the European region- Bluecode, momo packet, Pivo, ePassi, Pagaqui, and Alipay- announced their collaboration to promote QR code-based digital payment interoperability for travellers both in Europe and from China. In March 2018, Bankia and PayPal entered into a strategic partnership in Spain that enabled Bankia customers to link their cards to PayPal to complete digital transactions quickly.
The European Digital wallet market has been segmented based on the device and application. By device, the market has been segmented as PCs/laptops and smartphones. By application, the European digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others. By country, the European digital wallet market has been segmented into the United Kingdom, Germany, France, Spain, and Others.
Key Developments in the Market:
COVID-19 has significantly impacted the European digital wallet market. Amid the increasing surge in active cases and spread of the infection, the government had enforced lockdown and social distancing measures. This increased the prevalence of online shopping and caused many consumers to shift towards contactless digital wallet technology. Furthermore, the growing number of digital payments is further driving the penetration of digital wallets. The adoption of e-payment systems had progressively emerged amid the epidemic as a payment system instrument.
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