Artificial intelligence agents have completed more than 138 million blockchain transactions through Coinbase's x402 payment protocol on the Base network, according to new research published by blockchain analytics company Chainalysis on October 14, 2026. The findings highlight the rapid development of autonomous payment systems that let AI-powered software buy digital services, access information, and complete transactions without human intervention for every payment.

The research, published as part of Chainalysis' 2026 analysis of cryptocurrency adoption in North America, shows machine-to-machine payments moving beyond early experimentation toward more regular commercial activity. More than 87% of the transactions examined involved payments worth between $0.0001 and $0.10, demonstrating the importance of low-cost payment infrastructure for AI systems that frequently purchase small amounts of data, computing capacity, and other digital resources.

Although these transactions don't match conventional retail purchases, their growth signals a key development in agentic commerce: AI systems are becoming economic participants that can manage limited spending decisions and purchase services as part of automated workflows.

Blockchain payments by AI agents exceed 138 million transactions

Chainalysis found that cumulative transactions using the x402 protocol on Base had exceeded 138 million by its 2026 reporting period. The figure represents a substantial increase from the approximately 1,500 transactions recorded in mid-2025, when the technology was still in its earliest stages of adoption.

Developers and businesses have driven the expansion by experimenting with autonomous software capable of making payments directly to online services. Instead of requiring a human user to manually authorize every transaction, an AI agent can use a funded digital wallet to purchase resources as needed to complete an assigned task.

For example, an AI system conducting financial research might need access to a premium market-data service. A software development agent might need a code review, while another assistant might need to buy more computing capacity or access a specialized AI model. Through compatible payment infrastructure, these transactions can occur automatically within the agent's workflow.

However, the headline figure requires an important distinction. The 138 million transactions represent the number of payments processed through x402 on Base, not the monetary value of those payments. They should not be interpreted as $138 million in revenue or as 138 million consumer shopping orders.

Chainalysis also identified substantial speculative activity during the protocol's early development, particularly involving cryptocurrency tokens. Consequently, transaction growth alone does not establish the scale of commercially productive AI activity.

Nevertheless, the research provides measurable evidence that autonomous payment infrastructure is attracting sustained interest.

How Coinbase's x402 protocol enables autonomous payments

Coinbase introduced the x402 protocol in May 2025 to enable automated payments directly through internet requests. Its name references HTTP status code 402, traditionally associated with the concept of payment being required to access an online resource. The technology allows software applications and AI agents to purchase services without relying on conventional subscription arrangements or repeated manual payment procedures.

When an agent requests access to a paid resource, the service can respond with payment instructions. The agent then evaluates the request, transfers the required amount through a supported blockchain payment mechanism, and provides confirmation to access the resource. Payments commonly use stablecoins, including USDC, which are designed to maintain a relatively stable value against a reference currency such as the US dollar.

The protocol supports multiple blockchain networks, though Base, developed by Coinbase, has emerged as a particularly active environment for x402 transactions. This architecture's economic significance lies in its ability to support very small payments at relatively low settlement costs.

Traditional payment cards are designed primarily for consumer and business transactions involving amounts large enough to justify processing fees and other operational expenses. Payments worth fractions of a cent are generally uneconomical through conventional card infrastructure. Blockchain-based settlement systems can make such transactions more practical, allowing digital services to charge per request rather than requiring customers to buy subscriptions or prepaid packages. This could support new commercial models in which AI systems purchase precisely the information or computing resources they need.

More than 87% of AI payments are worth less than ten cents

One of the most revealing findings concerns the value of individual transactions. Chainalysis examined x402 activity over the 16 months ending in September 2026 and found that more than 87% of payments fell between $0.0001 and $0.10. The most common transaction values were between one and ten cents. These figures indicate that much of the emerging agentic payment economy is based on micropayments rather than conventional retail transactions.

For developers, the ability to charge small amounts for individual services creates opportunities to commercialize digital resources that would otherwise be difficult to sell economically. For example, a financial information provider could charge an AI agent for each dataset requested. A software security company might charge for individual code inspections, while an AI infrastructure provider could charge per model query. This approach differs from the subscription-based pricing structures that dominate many software services.

Instead of committing to a monthly payment, autonomous systems could access resources on demand, with costs determined by actual usage. Such arrangements may become especially important as AI agents grow more sophisticated and coordinate multiple specialized services to complete complex tasks. For the broader digital economy, micropayment infrastructure could help create marketplaces where software applications automatically exchange services and information.

However, high transaction volumes should not be confused with high commercial revenue. The predominance of extremely small payments means that even millions of transactions may represent comparatively modest financial value.

AI agents are spending money faster after receiving funds

Beyond transaction volumes, Chainalysis identified changes in how quickly AI-related wallets begin spending after receiving funds. In late 2025, the median interval between a wallet's initial funding and its first x402 payment was approximately 73 days. By the third quarter of 2026, that interval had fallen to just 18 minutes.

The finding suggests developers increasingly create and fund wallets specifically to run automated tasks, rather than for general experimentation or holding digital assets. The proportion of newly funded wallets making their first x402 payment within one hour also increased substantially. In the third quarter of 2025, only 4% of wallets made their first payment within an hour of receiving funds. By the third quarter of 2026, the figure had reached 67%.

This acceleration suggests a closer connection between wallet funding and immediate operational requirements. An AI agent may receive a defined spending allocation shortly before beginning a task and then use those funds to purchase the services necessary to complete it. Such behavior aligns with the development of automated payment workflows in which spending decisions are part of software execution.

Nevertheless, the data does not establish that every transaction was initiated independently by an AI model. Some activity may involve automated applications or scripts operating within predefined instructions.

Repeat funding suggests more sustained adoption

Chainalysis also examined whether wallets continued receiving funds after their initial activity, providing another indicator of recurring usage. Among qualifying wallets first funded in the third quarter of 2025, 70.6% received additional funding within 30 days. For the corresponding group first funded in the second quarter of 2026, that proportion increased to 89.3%.

The analysis focused on wallets that had made payments on at least two separate days, excluding one-time participants from this particular comparison. This qualification is important because the figures measure repeat funding among an already active group rather than retention across all newly created wallets.

Even with that limitation, the increase suggests developers and organizations using x402 are becoming more willing to replenish wallets and keep automated payment systems running. Repeat funding can indicate that an agent is performing tasks valuable enough to justify ongoing expenditure.

For example, a business might allocate a recurring budget to an automated market intelligence assistant that purchases information from external data providers. Similarly, software development teams could fund agents that continuously access testing tools, security services or specialized computing resources. These use cases show how autonomous payments could become a routine part of business operations.

What are AI agents actually buying?

Chainalysis's findings show that the emerging market for autonomous payments is currently concentrated in digital services rather than physical consumer goods. One of the largest spending categories is AI model inference, where an agent pays to access another AI model.

This can occur when a relatively simple agent needs specialized capabilities to complete a task, such as analyzing complex information, generating code or interpreting technical documents. Other important categories include data and search APIs, financial intelligence, software code review, security analysis and tools used to develop or operate AI agents.

In effect, AI systems are increasingly purchasing services from other software systems. This development could create a digital economy in which agents act simultaneously as buyers, service providers and intermediaries.

A business-oriented AI assistant, for example, might buy market data from one provider, get analytical processing from another, and use a third service to generate a report. Each interaction could involve a separate automated payment, potentially completed within seconds.

The model gives providers of specialized digital services opportunities to monetize their capabilities through standardized payment infrastructure. At the same time, Chainalysis cautions that some early x402 transaction activity was driven by speculative cryptocurrency applications, including memecoin-related transactions. The emergence of more sustained information-service payments is an important development, but the overall ecosystem remains early-stage.

United States dominates AI-to-AI payments

The research also identifies substantial geographic differences in the development of autonomous payment activity. According to Chainalysis, wallets attributed to the United States accounted for approximately 30% of geographically identifiable transactions between AI agents and services using x402.

The American share was considerably higher in categories associated with AI infrastructure. US-linked wallets represented 88.1% of identifiable transactions involving AI model inference and 41.8% of payments to agent frameworks and tool catalogs. They also accounted for 23.2% of transactions involving data and search APIs.

These figures reflect the prominent position of American companies in artificial intelligence development, blockchain infrastructure and digital payment technologies. Coinbase, which developed x402, and Circle, the issuer of USDC, are among the companies supporting the infrastructure used for autonomous payments.

The United States is also home to major AI model developers and a substantial ecosystem of businesses building agent-based software. China presents a different pattern. Chainalysis identified particularly strong Chinese-linked activity in security and code analysis services, suggesting the emerging agentic economy may develop different regional specializations.

However, geographic attribution in blockchain analysis has limitations. Wallet activity cannot always be reliably assigned to a particular country, and the available percentages refer only to transactions for which geographic identification was possible.

What autonomous payments mean for e-commerce

Although the Chainalysis findings primarily concern digital services, they have broader implications for e-commerce development. Agentic commerce describes a commercial environment in which AI systems can participate in purchasing decisions, product discovery and transaction execution. For consumers, this could eventually involve shopping assistants that compare products, identify suitable retailers and facilitate purchases according to predefined preferences.

For businesses, autonomous agents may increasingly purchase software services, market intelligence, logistics information and other resources required to support commercial operations.

The x402 protocol demonstrates one possible payment infrastructure for this emerging environment, particularly where transactions are frequent and individually small. However, conventional retail requirements differ from those of machine-to-machine micropayments. Purchasing physical products involves inventory availability, delivery addresses, taxation, consumer protection, fraud prevention, returns, and dispute resolution.

These considerations make it unlikely that a single payment protocol will address every aspect of agentic commerce. Instead, different payment technologies may serve complementary purposes. Blockchain-based stablecoin payments could become increasingly relevant for automated purchases of digital services, while established payment providers continue supporting consumer transactions that require additional authorization and protection mechanisms.

The growth of x402 should therefore be seen as evidence of expanding autonomous payment capabilities, not proof that blockchain transactions are replacing conventional e-commerce checkout systems.

Implications for cross-border commerce and digital services

Machine-to-machine payments could be particularly relevant for cross-border digital commerce. Businesses operating internationally often encounter payment processing costs, currency conversion expenses and administrative requirements when purchasing services from providers in other countries. For small digital transactions, these costs can become disproportionately high.

Low-cost blockchain payments could reduce some of these barriers by letting software applications settle transactions using compatible digital currencies and payment protocols. This may create opportunities for international providers of data, computing services and AI infrastructure to sell access to customers without requiring conventional billing relationships for every transaction.

An AI agent operating in Europe, for example, could theoretically purchase access to a specialized information service located in another region through an automated stablecoin payment. Such transactions could support more flexible international markets for digital resources.

Nevertheless, cross-border adoption will depend on several factors, including regulatory compliance, sanctions screening, cybersecurity, stablecoin availability and the legal treatment of digital asset payments.

Businesses will also need mechanisms to manage automated spending limits, transaction records, and financial accountability. Consequently, autonomous payment infrastructure will need appropriate governance and risk-management systems.

Agentic commerce moves beyond experimentation

Chainalysis research shows that autonomous payment systems are developing more persistent usage patterns. The increase to more than 138 million cumulative x402 transactions, combined with faster initial spending and higher repeat funding among active wallets, suggests that developers are integrating automated payments into increasingly practical workflows.

However, the market remains relatively immature. Most transactions involve very small amounts, early adoption has been driven by speculative activity, and available research does not establish the total economic value generated by autonomous payments. Nevertheless, the findings indicate that a new form of digital commerce is beginning to take shape.

Rather than relying exclusively on human users to initiate purchases, software applications are becoming capable of acquiring resources and services as part of their normal operations. For e-commerce companies, payment providers, and technology developers, this creates opportunities to build infrastructure that supports transactions between people and autonomous systems.

The immediate commercial impact may be most visible in digital services, where AI agents can purchase information, computing resources and specialized capabilities without the logistical complexity of physical retail. Over time, however, the same underlying principle could influence broader commerce: software systems identifying commercial requirements, evaluating available suppliers and executing payments within defined limits. Chainalysis' findings suggest that this transition is already underway, even if the full economic potential of agentic commerce has yet to be demonstrated.

The post AI agents surpass 138 million blockchain payments as autonomous commerce accelerates, Chainalysis finds appeared first on Cross-Border Magazine.

Ant International's Antom has partnered with Google Gemini to expand access to Google's AI services across Asia, combining localized payments, subscription management, and digital distribution infrastructure in a collaboration that has already reached approximately 10 million users in Indonesia.

The partnership connects Google AI Plus with Antom's extensive network of digital wallets, e-commerce platforms and other digital services across the region. Beyond processing payments, Antom is providing infrastructure covering billing, tax management, risk management, marketing and account services throughout the subscription lifecycle.

The initiative initially launched in Indonesia in July 2026 and is now expected to expand into additional Asian markets. It provides another example of how global technology companies are increasingly relying on local payment ecosystems to scale digital products across highly fragmented markets.

For the payments industry, the partnership also demonstrates how payment orchestration is evolving beyond transaction processing. Providers such as Antom are increasingly combining payments with customer acquisition, localization, risk management and digital commerce services — capabilities that could become even more important as AI platforms move toward agentic commerce.

Antom and Google Gemini target Asia's fragmented payment landscape

Asia represents an enormous opportunity for global digital services, but it is also one of the world's most complex payment environments. Consumers across the region rely on a wide variety of digital wallets, bank transfers, QR-based payment systems, and local payment methods rather than a single dominant payment infrastructure.

For international companies, supporting those methods individually can require multiple technical integrations, commercial relationships and compliance processes. Antom's role is to simplify that complexity.

The Ant International subsidiary allows merchants to access more than 300 payment methods through a single integration, reaching consumers in more than 200 markets and supporting payments in more than 140 currencies. In Indonesia alone, the payment landscape includes digital wallets such as DANA, GoPay, OVO, and ShopeePay alongside QRIS, bank transfers, and numerous online banking options.

For a global service such as Google Gemini, connecting to this fragmented ecosystem through a payment orchestration provider can reduce the technical and operational complexity of entering individual markets. The partnership therefore extends beyond simply adding another payment method to Google AI Plus. Antom is effectively providing part of the commercial infrastructure required to distribute and monetize Google's AI services locally.

Indonesia becomes the first market

The collaboration began in Indonesia in July 2026 with a campaign offering a 12-month free trial of Google AI Plus to eligible students aged 18 to 25. Consumers can access the offer through several widely used digital channels, including DANA and GoPay, as well as Indonesian e-commerce platform Tokopedia. The campaign also extends to physical retail through participating MomoYo locations, a dessert and beverage chain operating in the country.

According to Ant International, the initiative has already reached approximately 10 million users in Indonesia. The scale of the initial rollout demonstrates the potential of combining payment infrastructure with distribution. Instead of relying exclusively on Google's own channels to acquire subscribers, Gemini can appear within digital wallets, e-commerce platforms and other services consumers already use.

For Antom, the model creates what the company describes as a "two-way growth engine": global digital businesses gain access to local users, while payment platforms and merchants can add new services and promotions designed to increase engagement.

A+Rewards connects Gemini with local digital ecosystems

A central component of the partnership is A+Rewards, Antom's digital marketing platform. A+Rewards is integrated into more than 30 major digital platforms and provides in-app entry points through which consumers can discover offers from participating brands and digital services.

According to Ant International, the wider network connects approximately 2.85 billion active digital payment users. For Google Gemini, this creates a distribution channel that extends far beyond conventional advertising or app-store discovery. Users can encounter Google AI Plus offers while interacting with services they already use for payments, shopping, and everyday digital activities.

The infrastructure uses AI technologies and privacy-preserving computing to support customer acquisition and promotional campaigns. In Indonesia, for example, Google AI Plus trials can be discovered through DANA, GoPay and Tokopedia.

This integration of payments and marketing is increasingly important in digital commerce. Payment providers historically entered the customer journey primarily at checkout. Platforms such as Antom are attempting to participate much earlier, helping merchants acquire customers before subsequently processing and managing their transactions.

Antom manages more than payments

One of the most important aspects of the Google partnership is the breadth of services Antom is providing. The company is consolidating billing, tax management, risk management, marketing and account services alongside payment processing.

This lets Antom support much of the subscription lifecycle for AI companies entering new markets. For global digital businesses, these operational requirements can become significant barriers to international expansion.

Local taxation rules vary. Payment preferences differ between countries. Fraud patterns change between markets. Subscription billing requires recurring payment capabilities, while customer acquisition may depend on partnerships with local digital ecosystems.

A payment provider that can combine these functions can reduce the number of separate systems and partners a global company needs to manage. The model is particularly relevant for subscription-based AI services, which increasingly compete for paying consumers worldwide.

As AI platforms expand internationally, the ability to accept local payment methods and manage recurring billing could become almost as important as the underlying technology itself.

Southeast Asia emerges as a major AI market

Google's decision to expand Gemini through local Asian payment ecosystems also reflects the rapid adoption of artificial intelligence across Southeast Asia. Google says interest in AI in the region is approximately three times the global average, while the number of active Gemini users in Southeast Asia has more than doubled over the past year.

The region is also overwhelmingly mobile-first. About three-quarters of Gemini requests in Southeast Asia come from mobile devices, and younger consumers in particular often use apps rather than traditional desktop browsers.

Indonesia illustrates that behavior particularly clearly. According to Google, around 82% of Gemini prompts in the country originate from mobile devices. Language localization is equally important. Approximately 84% of Gemini prompts in Indonesia are made using local languages.

These characteristics create a natural connection between AI services and mobile payment ecosystems. Digital wallets in Southeast Asia are often much more than payment applications. They can function as broader digital platforms combining payments, promotions, financial services, shopping, and other consumer activities. Integrating AI subscriptions into those environments gives companies such as Google another route to reach highly engaged mobile users.

Payments become a distribution channel

The Antom-Gemini partnership illustrates a broader transformation occurring within the payments industry. Payment providers are increasingly attempting to move beyond the final transaction. Traditionally, a payment service provider became visible when the customer reached checkout. Its primary responsibilities were authorizing the transaction, moving funds and managing associated financial risks.

That model is expanding. Modern payment platforms increasingly provide fraud prevention, currency conversion, subscription billing, tax services, customer analytics and marketing tools. Antom's A+Rewards network takes this development further by turning payment ecosystems themselves into customer acquisition channels.

Digital wallets can expose users to subscription offers. E-commerce platforms can distribute digital services. Merchants can become physical acquisition points for online products. Payments therefore become part of a broader commercial infrastructure connecting global brands with local consumers. This can be particularly valuable for cross-border commerce.

A company entering Indonesia, Thailand, Malaysia or another Asian market does not necessarily need to reproduce its existing Western payments strategy. Instead, it can connect with the local digital ecosystems consumers already trust and use.

Antom builds an infrastructure layer for global digital commerce

The Google collaboration also demonstrates Ant International's ambitions beyond its traditional association with Alipay. Antom is positioned as Ant International's merchant payment and digitization services business, providing payment infrastructure to companies operating internationally.

Its platform supports more than 300 payment methods through a single integration and allows merchants to accept payments across more than 200 markets and over 140 currencies. The company describes its payment architecture as AI-native and combines payment processing with risk management, digital marketing and other merchant services. This infrastructure is particularly relevant in Asia, where payment fragmentation remains a significant challenge for international merchants.

Instead of integrating independently with dozens of wallets, banks, and alternative payment systems, businesses can use an orchestration layer that connects them to multiple local options. The approach resembles developments elsewhere in global e-commerce, where infrastructure providers increasingly compete to become the layer connecting merchants with multiple marketplaces, payment systems or logistics networks. Complexity itself is becoming a business opportunity.

The connection with agentic commerce

Although the Google Gemini partnership is focused primarily on distributing and monetizing Google AI Plus subscriptions, it arrives as the payments industry prepares for a much larger transformation: AI agents capable of initiating and completing purchases.

This distinction is important. The current collaboration does not mean Gemini is autonomously purchasing products through Antom. Instead, Antom is providing payment and commercial infrastructure around Google's AI service. However, the same capabilities required to sell AI subscriptions internationally — payment orchestration, local payment methods, identity, risk management, recurring billing and cross-border settlement — are also likely to become important components of agentic commerce.

Antom is already developing agentic payment and agentic commerce capabilities. The broader industry is moving rapidly in the same direction. Visa, Mastercard, PayPal, Stripe, and other payment companies are developing infrastructure designed to identify AI agents, authenticate consumers, and allow authorized software agents to execute transactions.

Commerce platforms are simultaneously adapting their systems so AI agents can discover products and interact with checkout environments. The challenge becomes particularly complicated when those agents operate internationally.

An AI assistant purchasing something for a consumer in Indonesia may need access to completely different payment methods from an agent operating in Germany, the United States, or Japan. Payment orchestration platforms that can translate between global AI services and local payment ecosystems could therefore become an important layer in agentic commerce.

Localization could become critical for AI commerce

Much of the current discussion around agentic commerce focuses on whether AI agents can discover products, compare prices and complete checkout. But international commerce introduces another problem: localization.

An AI agent may understand what a consumer wants to buy, but completing the transaction requires access to payment methods that the merchant accepts and that the consumer actually uses. That problem becomes significantly more complicated across borders.

Asia provides perhaps the clearest example. Payment behavior varies substantially between countries, with digital wallets, QR systems, bank transfers, cards, and other alternative payment methods competing for consumer adoption.

A global AI platform attempting to interact directly with every local payment system would face considerable technical complexity. Payment orchestration can provide an abstraction layer between the AI service and those local networks.

Instead of building hundreds of individual integrations, AI platforms could connect to infrastructure that routes transactions through the appropriate payment method for each consumer and market. Antom's existing reach across hundreds of payment methods puts it in a strong position as that ecosystem develops.

AI, payments and commerce continue to converge

The Antom-Google partnership is another indication that the boundaries between artificial intelligence, payments and digital commerce are becoming increasingly blurred. Google wants to expand access to Gemini across Asia.

Antom provides access to local payment ecosystems, digital platforms and merchants. Digital wallets become distribution channels for AI subscriptions. And the payment provider manages much more than the transaction itself, including marketing, risk, billing, and account services.

For now, the objective is straightforward: make Google AI Plus easier to discover, access, and eventually monetize across diverse Asian markets. But the underlying infrastructure has broader implications. As AI assistants evolve from tools that provide information into agents that can act on behalf of consumers, they will need connections to the same commercial systems humans use today: merchants, marketplaces, payments, identity services, and logistics networks.

The companies controlling those connections could become increasingly important intermediaries in the next generation of digital commerce. Antom's partnership with Google Gemini offers an early example of how that infrastructure may develop—not by replacing local payment ecosystems, but by connecting global AI platforms directly to them.

The post Ant International and Google Gemini expand AI payments partnership across Asia appeared first on Cross-Border Magazine.

Spain’s e-commerce market continues to experience rapid expansion, with digital payments increasingly overtaking cash. By 2025, online shoppers are projected to exceed 40 million, and e-commerce revenue is expected to surpass €75 billion.

That's why we will take a look at the current status of Spanish online payment solutions today.

Market Overview and Consumer Preferences

Growth of Online Shopping

In 2022, e-commerce turnover in Spain reached approximately €67 billion, growing steadily and expected to reach over €75 billion by mid-decade. Consumer adoption is rising, with nearly 40 million digital buyers projected by 2025 (from 32 million in 2022).

Payment Behavior: Card and Wallets

In 2024, 51% of online payments in Spain were made with cards, followed by 26% via other electronic methods such as digital wallets and mobile apps. While physical stores still handle a portion of payments in cash, card, and mobile payments are becoming dominant in online commerce.

Card Usage Dominance

Card payments remain Spain’s most important online payment instrument. In 2024, cards accounted for 62% of payment volume, with nearly 94 million cards in circulation by 2025, averaging two cards per adult.

Digital Wallets and Instant Payments

Digital wallets—including PayPal, Apple Pay, Google Pay, and especially Bizum—constitute a growing share of e-commerce payments. They are forecast to rise steadily thanks to consumer demand for fast, mobile-first checkout. Bizum is particularly prominent for peer-to-peer and retail use. In 2024, it had over 27 million active users and launched Bizum Pay for NFC and e-commerce in 2025.

BNPL Growth

Buy Now, Pay Later (BNPL) services are also expanding. Spain’s BNPL market is projected to grow at an annual rate of 11.6%, reaching nearly €9 billion by 2025.

Leading E-Commerce Payment Methods in 2025

Credit & Debit Cards

Cards represent over 50% of all online transactions in Spain. They capture the largest share of e-commerce value due to widespread use, high trust levels, and high average basket sizes. Cards are especially preferred for purchases over €50 and in cross-border shopping.

Digital Wallets & Bizum

Digital wallets, including PayPal and mobile-native options, account for approximately 26% of online payments and are experiencing steady growth. Bizum stands out due to its widespread P2P adoption and increasing use in commerce through the newly launched Bizum Pay feature.

Instant Bank Transfers (Bizum in Commerce)

Bizum enables instant, account-to-account bank transfers and is growing rapidly for e-commerce, offering low-friction checkout and seamless integration with Spanish banks.

Buy Now, Pay Later (BNPL)

BNPL services like Klarna and local providers are on the rise, especially in high-growth verticals like electronics, fashion, and travel. They provide installment flexibility for consumers and increase average order values for merchants.

SEPA Direct Debit and Recurring Payments

SEPA direct debit remains the leading method for recurring payments such as subscriptions and utilities. It is favored for its automation, predictability, and low fees for domestic services.

European Initiatives & Wero Rollout

Bizum & EuroPA Alliance

In 2025, Bizum joined EuroPA alongside Portugal’s MB WAY and Italy’s Bancomat Pay, enabling cross-border instant payments across Southern Europe. This alliance aims to create an interoperable European payments framework centered on mobile-first experiences.

Wero (EPI Wallet)

Wero is the new European digital wallet developed under the European Payments Initiative (EPI). It is intended to unify and gradually replace local solutions like Bizum, starting in 2025. It includes features such as QR-code-based payments, BNPL support, loyalty programs, and strict EU data compliance. Full rollout in Spain is expected between 2025 and 2026.

Strategic Considerations for Spanish E-Commerce Merchants

Conversion-Optimized Payment Mix

To reduce cart abandonment and optimize conversion rates, merchants should prioritize card acceptance, followed by PayPal, Bizum, and emerging BNPL options. Offering a diverse mix aligned with Spanish user preferences is critical.

Streamlined, Mobile-First Checkout

With mobile commerce on the rise and more than 60% of Spanish users stating they would spend more online if checkout were simpler, merchants must focus on providing frictionless, mobile-optimized experiences. Features like one-click payments, biometric login, and mobile-native wallets are now essential.

Preparing for EU Payment Infrastructure

Merchants should follow developments around Bizum’s integration into EuroPA and the eventual launch of Wero. Ensuring readiness for PSD2/PSD3 compliance and supporting open banking features will help future-proof operations and ensure EU-level competitiveness.

Summary Table: Spain’s E-Commerce Payment Methods 2025

Spain’s e-commerce payment landscape in 2025 is led by credit and debit cards, with digital wallets and Bizum gaining increasing support. Recurring transactions are primarily driven by SEPA direct debit, while BNPL is gaining traction across various retail categories. The introduction of Wero will mark a turning point, offering a unified, EU-native alternative to U.S.-based platforms.

To thrive, merchants must adapt to evolving consumer habits, prioritize mobile-friendly, multi-option payment experiences, and prepare for deeper European integration through platforms like EuroPA and Wero.

The post E-Commerce Payment Landscape in Spain 2025 appeared first on Cross-Border Magazine.

The Netherlands is a digitally advanced e-commerce market, with online retail sales exceeding US$43 billion in 2023, expected to grow to around US$63 billion by 2027. Nearly 40 % of purchases are made via mobile devices, highlighting consumers’ preference for fast and trusted digital payment options.

Today, we want to take a deep look at the Netherlands' current e-commerce payment solutions landscape.

Market Overview and Consumer Preferences

iDEAL Dominance in Dutch Payments

iDEAL, the Dutch bank-transfer-based payment system, processes approximately 60–70 % of all online transactions in the Netherlands. It rose from 69% in Q3 2022 to 73% in Q3 2023, confirming its position as the undisputed market leader in e-commerce payments.

Use of Cards and Digital Wallets

Credit and debit cards are less frequently used by Dutch consumers (approximately 14% of transactions), although they remain essential for international shoppers and higher-value purchases. Digital wallets, such as PayPal, Apple Pay, and Google Pay, account for around 11% of transactions, favored by younger and mobile-first shoppers.

Emergence of BNPL and Open Banking

Buy Now, Pay Later (BNPL) is gaining traction in the Netherlands. The market is expected to reach approximately US $10.3 billion in 2025, growing at a 14 % annual rate, with providers like Klarna and Riverty expanding their partnerships with local retailers. Meanwhile, open banking and real-time account-to-account (A2A) payments are rising due to faster settlement and reduced reliance on cards.

Leading E‑Commerce Payment Methods in 2025

iDEAL (Bank‑Based Payments)

iDEAL remains the cornerstone of Dutch online checkout, accounting for over 70% of e-commerce transactions. Shoppers authenticate via their own bank’s secure environment, with prefilled payment information and instant confirmation. The integration of iDEAL is crucial for conversions in Dutch webshops.

Credit & Debit Cards

Used for approximately 14 % of transactions, cards (Visa, Mastercard, Maestro, V Pay) are primarily favored by cross-border customers, higher-basket shoppers, and B2B merchants. For domestic Dutch shoppers, iDEAL remains the preferred alternative.

International Wallets (PayPal, Apple Pay, Google Pay)

These digital wallets account for around 11 % usage and help merchants attract international consumers and younger shoppers. They offer speedy checkout and minimal friction, although conversion rates remain highest with local payment methods.

BNPL (Buy Now, Pay Later)

BNPL adoption is on the rise, with consumers drawn to the flexibility and deferred payments offered. Major providers like Klarna and Riverty are expanding in the Netherlands, particularly among shoppers of fashion and electronics.

Open Banking‑Driven Real‑Time Payments

Real-time A2A payments, enabled by open banking frameworks, are emerging as the preferred method for fast, secure, and cost-effective e-commerce transactions—bypassing cards and reducing fees.

European Payments Initiative: Wero Transition

Wero and the Future of Dutch Payments

The European Payments Initiative (EPI) acquired iDEAL in October 2023 and is preparing to transform it into Wero, a pan‑European digital wallet system. Wero is set to gradually replace iDEAL and expand functionality to online shopping, mobile commerce, QR-based checkout, BNPL, loyalty integration, and European data sovereignty features. Full rollout in the Netherlands is expected between 2025 and 2026, following pilot stages in other markets.

Strategic Considerations for Dutch E‑Commerce Merchants

Prioritizing Local Payment Experience

Dutch consumers overwhelmingly prefer local bank-based payments. Offering iDEAL should be non-negotiable. Only after iDEAL should merchants layer in cards, wallets, or BNPL as secondary options.

Mobile Optimization and Checkout Flow

With nearly 40 % of purchases via mobile, checkout experiences must be streamlined, mobile-first, and support bank-based authentication methods like iDEAL. Digital wallets and BNPL are essential for enhancing speed and conversion on mobile devices.

Preparing for Wero and EU Integration

Merchants should stay informed about the Wero rollout, as it will eventually subsume iDEAL. Preparing integration pathways and ensuring compliance with evolving EU payment regulations (PSD2/3 and Strong Customer Authentication) will keep merchants competitive and future-ready.

Summary Table: Netherlands E‑Commerce Payment Methods 2025

In the Netherlands, iDEAL remains indispensable, representing the largest share of e-commerce payments. Cards and international wallets offer supplementary reach, while BNPL and real-time open banking provide modern flexibility. The upcoming Wero platform represents the next-generation EU-compatible payment framework.

Merchants seeking success in the Dutch market should prioritize iDEAL support, optimize for mobile and local preferences, and prepare for Wero-based payment evolution within the coming years.

The post E‑Commerce Payment Landscape in the Netherlands 2025 appeared first on Cross-Border Magazine.

Portugal’s e-commerce market is growing steadily, with an estimated value of US $6.45 billion by 2025, and projected to experience double-digit annual growth through 2030. Smartphones dominate, with over 40% of purchases made via mobile devices, and digital payments accounting for the bulk of transactions.

Market Overview and Consumer Preferences

Payment Method Shares

• Credit cards (Visa, Mastercard, etc.) account for approximately 26% of online purchases.
  
• E-wallets account for around 34% of transactions, led by local platforms.
  
• Bank transfers (including Multibanco systems) account for approximately 25%.
  
• Cash payments account for approximately 7%, with other methods making up the remainder.
  

Evolving Mobile and Wallet Trends

Portugal has experienced rapid digital adoption, with daily smartphone use for banking, a surge in wallet-based payments (MB WAY, Multibanco), and a notable increase in P2P activity. Urban areas have achieved mobile wallet penetration rates of 70–90%.

Leading E‑Commerce Payment Methods in Portugal

MB WAY (Portugal’s Leading Digital Wallet)

MB WAY dominates Portuguese e-commerce, accounting for up to 45% of transactions, with over 5 million active users and 9 million monthly purchases. Users authenticate via mobile number and PIN or biometrics. It supports one-click purchases, subscriptions, and fast refunds.

Multibanco / Bank Transfers

Multibanco (via SEPA-based bank transfer) remains widespread and trusted. It accounts for about 25 % of paid transactions, commonly used in combination with MB WAY or as direct bank settlement.

Credit & Debit Cards

Although used by only around 26 % of online shoppers, card payments still represent a major share of purchase volume due to higher average basket sizes. Cards remain essential for international customer reach.

International E‑Wallets (PayPal, Apple Pay, Google Pay)

While local wallets lead, international digital wallets, such as PayPal, Google Pay, and Apple Pay, are increasingly supported by Portuguese merchants to meet cross-border consumer demand.

European Initiatives & Interoperability Payments in Portugal

EuroPA (European Payments Alliance)

Portugal’s SIBS (MB WAY operator) joined forces with Italy’s Bancomat Pay and Spain’s Bizum to form EuroPA, enabling cross-border instant mobile payments in the Iberian region. Live as of March 2025, with plans to expand to 15 countries via partnership with the European Payments Initiative (EPI).

Wero (EPI Wallet Rollout)

Wero, the pan-European digital wallet by EPI, launched in mid-2024 with plans to add Portugal during 2025–2026. It will support instant account-to-account transfers using QR codes, BNPL, loyalty features, and EU data sovereignty. Wero and EuroPA collaboration was formally announced in June 2025.

Strategic Considerations for Portuguese E‑Commerce Merchants

Offering a Balanced Payment Mix

To minimize cart abandonment and maximize conversions, merchants should support MB WAY, Multibanco transfers, credit/debit cards, and international wallets—all preferred by different consumer segments.

Prioritizing Mobile-First Checkout

With mobile e-commerce accounting for the majority of online transactions in Portugal, checkout experiences must be wallet-optimized, streamlined, and support biometric/mobile authentication.

Planning for EU-driven Innovation

Merchants should prepare for integration of Wero and interoperability via EuroPA/EPI, aligning with PSD2/PSD3 regulations and leveraging EU-controlled payment infrastructure for future-proofing operations.

Summary Table: Portugal’s E‑Commerce Payment Methods 2025

Portugal’s e-commerce payment landscape in 2025 is heavily shaped by local digital wallets (MB WAY) and bank transfer infrastructure (Multibanco), while credit cards and international wallets support a broader range of consumer segments. Key developments, such as EuroPA interoperability and the forthcoming Wero wallet, signal a shift toward a European-controlled payments ecosystem.

To maximize conversion and future readiness, merchants should integrate a balanced mix of mobile-first, local, and pan-European payment options, aligned with evolving EU regulatory and technological trends.

The post E‑Commerce Payment Landscape in Portugal 2025 appeared first on Cross-Border Magazine.

Italy’s e-commerce market is rapidly growing—estimated at US $56 billion (≈ €52 billion) in 2025 and expected to reach approximately US $82 billion by 2027. As consumer behavior shifts toward digital, offering the right mix of payment methods is essential for enhancing trust and conversion.

That's why we will review the current landscape and leading players in the Italian online payment solutions market today.

Market Overview and Consumer Preferences

Payment Shares & Trends

• Credit and debit cards account for around 31–33% of online transactions, often leading in terms of transaction value.
  
• Digital wallets—including PayPal, PostePay, Amazon Pay, and Google Pay—account for ≈ approximately 35 % of online payments and are especially preferred for low-value orders.
  
• Bank transfers (e.g. SEPA, MyBank) contribute roughly 13 %, while cash on delivery still persists at about 4 %.
  

Payment Providers & Local Preferences

• PostePay, Italy’s national postal service prepaid card, is used by around 35% of consumers, often chosen over credit cards due to its convenience and security.
  
• PayPal remains widely trusted across purchase types—from subscriptions to retail—thanks to its buyer protection and flexibility in payment sources.
  

Leading E‑Commerce Payment Methods in 2025

Credit and Debit Cards

Credit/debit card transactions (Visa, Mastercard, local schemes) hold the largest share of e-commerce payment volume (≈ 31–33 %). Local card schemes are particularly significant, accounting for nearly 45% of card usage in some reports.

Digital Wallets (PayPal, PostePay, Amazon Pay, Google Pay)

Digital wallets account for approximately 35% of online payments in Italy. PayPal leads, followed by PostePay, Amazon Pay, and Google Pay.

PostePay

Issued by Poste Italiane, PostePay is deeply integrated with Italian e-commerce preferences and frequently used among younger or card-averse consumers.

Bank Transfers (SEPA, MyBank)

Account-to-account methods, such as SEPA transfers and MyBank (a bank-based online payment method), account for about 13% of transactions. These methods appeal to consumers favoring direct bank settlement.

Bancomat Pay

Bancomat Pay, Italy’s domestic debit card–based wallet, is gaining traction—especially after partnerships like the one with Amazon Italy, which enables checkout via Bancomat Pay cards.

Mobile Tap‑to‑Pay (Apple Tap to Pay, etc.)

In 2024, Nexi, Stripe, and Adyen launched Apple Tap to Pay services in Italy, enabling merchants to accept contactless NFC payments via iPhones—ideal for small shops without dedicated hardware.

European Initiatives: Wero & EuroPA

Wero (European Payments Initiative)

Wero, the new EU-wide digital wallet by the European Payments Initiative (EPI), was launched in mid-2024 and is expected to extend online payment functionality into 2025–2026. Italian merchants using Wero via Nexi will soon offer QR, installment, and BNPL features fully integrated into the European instant payment infrastructure.

EuroPA (European Payments Alliance)

Italy’s Bancomat, Spain’s Bizum, and Portugal’s SIBS created EuroPA to enable cross-border instant mobile payments across Southern Europe. By March 2025, instant transactions were live, and EPI–EuroPA collaboration was established to expand interoperability across 15 countries.

Strategic Considerations for Italian E‑Commerce Merchants

Optimizing Payment Mix for Conversion

Integrating local options, such as PostePay, Bancomat Pay, and SEPA transfers, alongside international methods (PayPal, cards), reduces abandonment and builds local trust.

Emphasizing Mobile-First Experience

With mobile accounting for around 40 % of Italian e-commerce, and mobile payments growing by 61% in 2024, merchants should prioritize NFC contactless options and wallet integrations for smoother checkout.

Preparing for European Innovation and Regulation

Merchants should monitor PSD2/3 compliance, SCA updates, and EU initiatives like Wero and EuroPA as they evolve through 2025, offering more EU-centric and sovereign payment infrastructure.

Summary Table: Italy’s E‑Commerce Payment Methods 2025

In Italy’s dynamic 2025 e-commerce ecosystem, there’s no one-size-fits-all payment solution. Cards and digital wallets dominate, but local favorites like PostePay and Bancomat Pay are essential for domestic appeal. Bank transfers remain a reliable option for consumers seeking direct and secure transactions.

Meanwhile, emerging platforms like Wero and EuroPA signal a broader move toward European-controlled, interoperable payments.

For merchants, success depends on offering a balanced mix of traditional, local, and modern methods—meeting Italian consumer preferences while preparing for pan-European payment innovation.

The post E‑Commerce Payment Landscape in Italy 2025 appeared first on Cross-Border Magazine.

Mobile payment adoption across the EU continues to accelerate. A recent OECD-supported study indicates that up to 59% of e‑commerce transactions in selected European countries are already executed through digital payments, with projections reaching 75% by 2030.

According to Mordor Intelligence, the European mobile payments market is expected to grow from USD 136.45 billion in 2025 to nearly USD 476.25 billion by 2030, with a 28.4% CAGR. In mobile commerce applications, retail and e‑commerce already contribute more than 35% of market value.

Regional Differences and Adoption Trends

Western Europe Leads in Mobile Wallet Usage

In countries such as the UK, Germany, and France, digital wallets are used by over 20% of consumers every week as of 2024. The Netherlands stands out, with more than 80% of consumers using Pay-by-Bank options monthly for online purchases.

Eastern Europe Showing Rapid Growth

In Eastern European markets like Poland, Romania, and Turkey, digital wallet adoption is growing steadily. However, card-based transactions still dominate. In Turkey, for instance, 65% of online transactions were card-based in 2023, though contactless and mobile options are expanding.

Emerging Infrastructure: Wero and EuroPA

Wero Launches Across Key Markets

Wero, the digital wallet by the European Payments Initiative (EPI), launched in Germany in July 2024 and is expanding to France and Belgium. Support for online commerce began rolling out in mid-2025—major banks and payment providers, including Worldline and Nuvei, back the wallet.

EuroPA Enables Cross-Border Mobile Payments

The European Payments Alliance (EuroPA) is a coalition of national payment schemes like Bizum, Bancomat, and MB Way, aimed at creating a cross-border instant payment network. Since early 2025, it has expanded into Slovakia, Norway, Greece, and Poland, offering seamless mobile transactions across regions.

Consumer and Merchant Benefits

Mobile payments offer fast, secure, and user-friendly checkout experiences. According to OECD data, point-of-sale mobile payments in the EU rose from €4 billion in 2017 to €195 billion in 2022, accounting for 21% of all POS value—with forecasts predicting 36% by 2030.

Merchants benefit from faster settlement, lower processing costs, and reduced fraud. Regulatory support under PSD2 and open banking fosters competition, enabling alternatives to high-fee card networks through instant account-to-account payment rails.

Barriers and Strategic Outlook

Despite rising adoption, cards still dominate e‑commerce in many EU markets, particularly in the east. Full online functionality for new wallets, such as Wero, is still being rolled out as of mid-2025. Legacy schemes such as iDEAL, Paylib, and Payconiq will be phased out gradually by 2027.

A significant milestone was reached in June 2025, when the EPI and EuroPA announced plans to unify under a single, interoperable EU payment framework, covering up to 15 countries and over 380 million consumers. This initiative aims to strengthen EU payment sovereignty and reduce reliance on US-based networks.

Summary of Key Metrics

Mobile Payment Statistics in the EU

• 59% of e‑commerce payments are already digital; 75% expected by 2030
  
• Europe mobile payments market projected to grow from USD 136B to 476B (2025–2030)
  
• Over 20% of consumers in Western Europe use wallets weekly
  
• Netherlands sees 80%+ monthly usage of Pay-by-Bank options
  
• POS mobile payments rose from €4B to €195B (2017–2022); 36% POS share by 2030
  

Strategic Recommendations for E‑Commerce Merchants

Integrate Wallets and Instant Bank Payments

E‑commerce businesses should integrate leading mobile wallet solutions such as Bizum, MB Way, Bancomat, and Wero as they become available in their respective markets. Offering Pay-by-Bank options can also reduce transaction fees and meet consumer demand.

Prepare for Cross-Border Mobile Commerce

With EuroPA and Wero expanding across multiple EU countries, merchants should prepare for increased cross-border wallet interoperability. Supporting seamless mobile payment experiences for users across different EU markets will be critical to retaining customers.

Monitor Regulation and Infrastructure Evolution

Merchants should stay updated on EU regulatory developments, such as PSD2 updates or new digital ID initiatives, that may impact payment flows. Embracing these technologies early will position businesses ahead of competitors.

Mobile payments are reshaping the future of e‑commerce across the EU. Driven by consumer demand, wallet innovation, and coordinated EU initiatives like Wero and EuroPA, the region is on the path to creating an integrated, sovereign digital payment infrastructure. Businesses that act now to adopt mobile-first strategies, support instant bank transfers, and stay abreast of the evolution of EU-led solutions will be well-equipped to thrive in the coming decade.

The post Mobile Payments in the EU represent 59% of all E-commerce Transactions appeared first on Cross-Border Magazine.

More than 50 years ago, BBVA introduced the first bank card in Spain, revolutionizing how people paid for goods and services. This milestone marked the beginning of a transformation that would eventually make card payments the most common form of transaction in daily life. But the payments landscape is shifting again, and instant payment solutions are leading the charge.

The Rise of Card Payments: A Legacy of Innovation

In the early days, payment cards were a novelty—an alternative to cash promoted by banks through growing networks of ATMs, merchant agreements, and digital platforms. Over time, cards symbolized convenience, security, and global reach, becoming integral to modern commerce.

Yet the same banks that introduced card technology are now driving a new evolution in payments—one that favors real-time, low-cost digital transfers over traditional card-based systems.

Instant Transfers: The New Standard in European Payments

What Are Instant Payment Solutions?

Instant payments are digital transactions that move money between bank accounts within seconds, 24/7. Unlike cards, these solutions eliminate intermediaries, offering direct, secure, and cost-effective alternatives that align with the European Union's goals for digital sovereignty.

Bizum: Spain’s Leading Example

In Spain, Bizum has become a household name. Backed by a consortium of Spanish banks, Bizum has:

• 28+ million users
  
• 3.4 billion transactions
  
• 80,000+ participating merchants
  

Initially launched as a peer-to-peer (P2P) transfer service, Bizum now supports online purchases, in-store QR code payments, NGO donations, and identity verification. With plans to incorporate NFC technology, Bizum is poised to cover the full spectrum of digital payments.

Beyond Spain: Interoperability Across Europe

Spain is not alone. Italy’s Bancomat Pay and Portugal’s MB Way have followed similar paths. Recently, these three services signed an interoperability agreement allowing users to make instant payments across borders with a mobile phone—no foreign platforms are needed.

The Push for European Payment Autonomy

Why Interoperability Matters

Although each domestic payment solution was designed for local needs, its long-term success depends on pan-European compatibility. A Bizum user should be able to pay a merchant in Italy using Bancomat Pay, and vice versa. This vision is driving technological and regulatory efforts at the European level.

Support from European Institutions

The European Commission and the European Central Bank (ECB) have strongly advocated for homegrown payment solutions as an alternative to international card networks. Their economic and strategic motivation is ensuring Europe’s control over its financial infrastructure and monetary policy.

Initiatives such as PSD3 (the new Payment Services Directive) and SEPA Instant Credit Transfer (SCT Inst), which enables real-time euro transfers across the eurozone, are laying the groundwork for this interoperable payment ecosystem.

The Digital Euro: A Public Alternative for the Digital Age

The upcoming digital euro represents the next significant shift. Currently in development by the ECB, this central bank digital currency (CBDC) aims to serve as a digital complement to cash, ensuring privacy, accessibility, and financial autonomy in an increasingly cashless world.

Role of Instant Payment Platforms

Platforms like Bizum are well-positioned to serve as distribution channels for the digital euro. They already:

• Operate under European regulations
  
• Offer real-time bank-authenticated payments
  
• Have high levels of user trust
  
• Provide proven technical infrastructure
  

This makes them ideal for integrating and distributing the digital euro in a secure, scalable, and inclusive way.

A New Payment Paradigm: Mobile, Fast, and Merchant-Friendly

Today’s consumers and merchants demand more than just convenience. They expect mobile-friendly, private, and efficient payment systems. Instant transfers outperform traditional cards in many ways:

• Lower and more transparent costs
  
• Fewer intermediaries
  
• Faster settlement
  
• Bank-to-bank relationships
  

This benefits merchants, who gain more predictable fees, and consumers, who enjoy seamless, real-time transactions.

The Road Ahead: Toward a Unified, Sovereign European Payments System

The journey that began with BBVA’s first card is coming full circle. Once again, banks are leading innovation, this time with digital tools designed for a connected, sovereign, and user-centric Europe.

National solutions like Bizum, Bancomat Pay, and MB Way are not isolated successes—they are the foundation of a new interoperable ecosystem. With support from European institutions, integration with the digital euro, and strong merchant and user adoption, these platforms are shaping the future of payments in Europe.

Will Instant Transfers Replace Cards?

The final decision doesn’t lie with regulators or banks—it lies with users and merchants. As they gravitate toward instant, secure, and cost-effective alternatives, the role of cards may gradually diminish. What’s clear is that instant payment solutions, once just a supplement, are becoming central to Europe’s digital financial future.

The post From Cards to Instant Payments: The Future of European Transactions appeared first on Cross-Border Magazine.

Buy Now, Pay Later (BNPL) services have revolutionized the European e-commerce sector, offering consumers flexible payment options and driving increased sales for merchants. As of 2025, BNPL has become a mainstream financial tool, particularly among younger demographics seeking alternatives to traditional credit.

Market Overview: BNPL's Explosive Growth

The European BNPL market has experienced significant growth:

• Market Size: In 2024, BNPL payments in Europe reached $167 billion, marking a 15.2% year-over-year increase. Projections estimate this figure will rise to $191.3 billion in 2025.
  
• Growth Rate: The BNPL sector is expected to maintain a Compound Annual Growth Rate (CAGR) of 10.1% from 2024 to 2029, indicating sustained expansion.
  
• Consumer Adoption: Approximately 68% of European consumers have utilized BNPL services, with 40% using them frequently.
  

Leading BNPL Providers in Europe

Several key players dominate the European BNPL landscape:

• Klarna: Headquartered in Sweden, Klarna is a leading BNPL provider with a presence in 26 countries and over 93 million users. The company offers a range of payment solutions, including interest-free installments and direct payments.
  
• Afterpay (Riverty): In Europe, Afterpay operates under Riverty. It provides BNPL services across multiple European markets, focusing on seamless integration with online retailers.
  
• PayPal Pay Later: Leveraging its extensive user base, PayPal offers BNPL options that are widely accepted by merchants, enhancing consumer flexibility at checkout.
  
• Scalapay: An Italian fintech company, Scalapay specializes in BNPL services for fashion and lifestyle products and partners with numerous European retailers.
  
• Alma: Based in France, Alma offers customizable payment plans and BNPL solutions for small and medium-sized businesses.

Main Buy Now, Pay Later (BNPL) providers operating in Europe:

Notes:

• Klarna processed $105 billion in Gross Merchandise Volume (GMV) in 2024, with 93 million active users and partnerships with 675,000 merchants .(research.contrary.com)
• Afterpay handled $27.3 billion in global payments in 2023, serving 24 million users worldwide. It operates under the name "Clearpay" in some European markets .(en.wikipedia.org)
• PayPal Pay Later has a significant user base in Europe, with 137.7 million users in Germany and 56.2 million in the UK as of 2024 .(oberlo.com)
• Scalapay achieved approximately €1 billion in annual financing volume across Southern Europe, with over 5 million users .(blog.scalapay.com)
• Alma reported over €1 billion in annual transaction volume and is a leading BNPL provider in France, expanding its presence across Europe .(fintechnews.ch)

Product Categories Popular with BNPL

BNPL services are predominantly used for the following product categories:

• Fashion and Apparel: Clothing and accessories are the most common purchases made using BNPL, appealing to consumers seeking to manage budgets without delaying gratification.
  
• Electronics: High-ticket items like smartphones, laptops, and gaming consoles are frequently financed through BNPL options.
  
• Home Goods and Furniture: Consumers utilize BNPL to spread the cost of home improvements and furnishings over manageable installments.
  
• Travel and Experiences: An emerging trend shows consumers using BNPL for booking travel and leisure activities, indicating diversification in BNPL usage.
  

Regulatory Landscape: Ensuring Consumer Protection

The rapid expansion of BNPL services has prompted regulatory scrutiny to safeguard consumers:

• European Union Initiatives: The EU is set to implement regulations classifying BNPL as consumer credit by 2026, mandating creditworthiness assessments and more precise terms to prevent over-indebtedness.
  
• Germany's Approach: Starting in 2024, Germany requires credit checks for BNPL transactions, even for amounts under €200, to mitigate consumers' financial risks.
  
• United Kingdom Measures: The UK government plans to bring BNPL providers under the Financial Conduct Authority's oversight, enforcing stricter lending standards and transparency.
  

BNPL services have become integral to the European e-commerce ecosystem, offering consumers flexible payment options and driving merchants' sales. As the market grows, regulatory frameworks are evolving to ensure responsible lending practices. Businesses and consumers should stay informed about these changes to navigate the BNPL landscape effectively.

The post Buy Now, Pay Later (BNPL) in European E-Commerce: A 2025 Market Deep Dive appeared first on Cross-Border Magazine.

Visa wants to expand its reach in payment flows beyond the traditional domain of its card network. The largest card network in the United States is preparing to offer A2A services in the UK in early 2025. As Visa CEO Ryan McInerney stated during the web broadcast of the company's first fiscal quarter results, this service will also reach other parts of Europe and other countries.

Initially, Visa will focus its A2A offering on bill payments for merchants and consumers, a segment where it has identified growing demand. However, the company plans to progressively expand the service to include direct transfers between bank accounts, thus optimizing the payment experience for its customers.

Account-to-account (A2A) payments allow direct transfers from the payer's bank account to the merchant or supplier without intermediaries such as credit or debit cards. Also known as “payment by bank,” these methods are beautiful to merchants as they eliminate card interchange fees.

A2A Payments are growing 

According to Statista, A2A payments are expected to grow at a compound annual growth rate (CAGR) of 14% between 2023 and 2027, consolidating their position as a key payment alternative in the coming years. This boom has led companies such as Visa to diversify their services, seeking new opportunities as the card market in the US and other regions matures.

In this context, Visa has announced that it will implement its bank payments service in the US once it has consolidated its European presence. The European strategy relies on Tink, the open banking fintech acquired by Visa in 2022, facilitating money movement between banks, merchants, and fintechs.

However, Visa faces growing competition in the A2A sector, especially in markets such as the US and Latin America, where other digital payment players are expanding their solutions. In Europe, the growth of these services has been more moderate, as card processing costs are significantly lower. As a result, A2A payments have focused on specific segments, such as high-risk businesses, high-value transactions, and recurring fees.

The post Visa opens its A2A service in the UK appeared first on Cross-Border Magazine.