Transformations in Payment Methods: A Look at Portugal in 2023

Prospects of the payment methods landscape in Portugal

In the contemporary financial landscape, the way individuals conduct transactions and payments is constantly evolving, driven by technology and changing consumer behavior. In Portugal, the year 2023 witnessed a series of significant transformations in payment methods, as revealed by the XIII Payment Methods Trends Report, released by Minsait Payments, a company within the Indra group.s is why every app must conduct elaborate market research before starting with an app project. Even while the app is ready for launch, you need to make a launch plan based upon the most suitable channels and marketing message for your target audience. 

Immediate Transfers and Debit Cards: Portuguese Favorites

One of the most striking conclusions of the report is the preference of Portuguese people for immediate transfers and debit cards as the most commonly used payment methods. While immediate transfers led to preferences for online payments, with a significant rate of 44.7%, debit cards emerged as the preferred method for in-person purchases, with a usage rate of 42.4%. This pattern reflects not only convenience but also the growing consumer confidence in electronic payment methods.

Contactless Payment: Growing Popularity in Portugal

Another aspect highlighted by the report is the growing popularity of contactless payment in Portugal. With an adoption rate of 59%, the country ranks third in the ranking, behind only the United Kingdom (69%) and Spain (72%). This trend reflects the pursuit of convenience and security, driven by the Covid-19 pandemic and consumers’ preference for payment methods without physical contact.

Neobanks: A Disruption in the Financial Sector 

In addition to changes in payment patterns, the report also highlights the growing role of neobanks in the Portuguese financial landscape. Almost a third of the population already operates with a neobank, signaling a significant shift in consumer preference towards more agile and digital banking services. This phenomenon is aligned with a global trend towards the digitization of financial services and challenges the traditional hegemony of banks.

Trends for 2024: Challenges and Opportunities 

The report not only analyzes the current state of payment methods in Portugal but also identifies key trends that will shape the sector in the coming years. Among these trends are the need for immediacy in daily transfers, the universalization of payment methods, the opening of data and borders, efficiency, and increased security in transactions. These changes highlight the importance of continuous adaptation by financial institutions and consumers to keep pace with technological evolution and market demands.  

Security and Innovation: Pillars of the Future of Payment Methods

Amidst all these transformations, security remains a fundamental concern for consumers and the financial sector as a whole. The report emphasizes the importance of applying technologies such as Artificial Intelligence in fraud prevention and ensuring the integrity of financial transactions. As the payment methods landscape continues to evolve, the quest for security, ease of use, and efficiency will remain at the forefront of consumer and business concerns.

Conclusion

The XIII Payment Methods Trends Report offers a comprehensive view of the current state and future prospects of the payment landscape in Portugal. As digitization continues to shape how individuals and businesses conduct their financial transactions, adaptation and innovation become imperative. The future of payment methods is intrinsically linked to the ability to respond to emerging challenges while seizing the opportunities offered by technology and changing consumer behavior.

The data in this article were extracted from the XIII Payment Methods Trends Report by Minsait, provided by the company. This report offers a comprehensive overview of current and emerging trends in payment methods. The detailed analysis covers various aspects, including the growth of e-commerce, the use of digital wallets, and the adoption of mobile payments. This information is valuable for understanding the current landscape of the financial sector and guiding business strategies to meet the demands of modern consumers.