In Europe the most popular payment methods used are electronic money transfer, bank transfer and debit cards. Not surprising for it is obvious that majority of European citizens are cash-dependent people.
Since many Europeans have a different reason for taking their money from the banks, they use a different mode of payment for it. PayPal, neteller, webmoney are some of the widely used. If you take a look at the top ten countries with the highest number of payments done through PayPal, they are Ukraine, Russia, Poland, Greece, Italy, Spain, France, Czech Republic, Denmark and Slovenia.
Yes, they make use of different methods to send their money to friends and family but why do these countries rate high on the list? This phenomenon shows that when the banking system is not in the best shape or the speed in transferring money from one bank account to another, it is often found that these financial institutions are the ones who benefit the most. Because they make use of better technology and software to process payments and to make it more user friendly and convenient, most of them will increase the number of their clients.
So how would this affect the financial industry? Most of the companies that offer services related to financial products will be affected. They will have to reduce their prices or raise their rates in order to compete with their competitors.
Let us see what is the most popular payment methods in Europe. The most popular among them are: credit cards, debit cards, cash, cheque, NETeller, PayPal and bank transfers. We can see that euro accounts have the highest number of purchases made by debit and credit cards.
You might have also noticed that in comparison to others’ countries’ euros are almost half of the total amount being spent in euro countries. This maybe caused by the fact that there are more euro companies in most of these countries. In addition to this, there are more financial institutions, the likes of which are the most expensive. They have the right conditions to do business in the currency of the country.
There are some countries that have huge investments in a single industry and as such need to have one to carry out the whole money transaction. And this is not surprising to see how the whole economy is heavily influenced by the financial sector. In these cases banks and payment companies can influence the economic situation, because they are the ones who can control it.
The percentage of these countries which do not use a payment method can be very low and it depends on the financial sector in that particular country. According to these statistics, the UK is the only one that uses a debit card the most of the other countries.
An example of the use of debit card is spending money by using cheques. This is the best way to spend money in euro countries. These are not very common in non-euro countries.
There are many reasons why a person chooses to use a debit card, the biggest one being security. In Europe, we see that most of the debit card payments are made by people with a low profile. It is not uncommon to see teenagers who are just starting to do shop at the mall using a debit card.
A debit card can be a good way to get more money out of your pocket. One of the advantages of it is that you do not need to put all the money to the retailer first, before getting any refund. The company will give you a small amount of money back to you at the end of the day.
So I hope that this article has helped you understand some of the factors that influence the use of bank transfer and payment card in Europe. Just keep in mind that not all the card issuing companies work in the same way so make sure you use the card that will be easiest for you.