Which payment methods are most commonly used in Europe how are they changing in Turkey

In recent years, payment methods have undergone significant transformation, driven by technological advancements and evolving consumer habits. While digitalization and contactless payment solutions rapidly gain ground across Europe, Turkey is also experiencing a similar shift. So, which payment methods are most popular in Europe, and what changes are happening in Turkey?

Payment Methods in Europe: The Rise of Contactless Payments

Europe is one of the fastest regions to adopt digital payment technologies. Contactless payments, in particular, have seen a remarkable surge in popularity. Payments made via contactless cards, smartphones, and digital wallets rank among the most preferred methods across the continent. The COVID-19 pandemic further accelerated this trend, as hygiene concerns boosted the adoption of contactless solutions.

Key Trends in Europe:

  • Contactless Payment Rates: According to Mastercard’s 2022 report, over 75% of in-person card transactions in Europe were contactless. Countries like the UK, Poland, Spain, and Germany have shown significant growth in contactless payment adoption.
  • Digital Wallets and Mobile Payments: Mobile payment solutions have become widespread in many European countries. Younger and tech-savvy consumers prefer using their smartphones over carrying physical cards. Scandinavian countries such as Sweden, Denmark, and Norway lead the way in digital wallet usage.
  • Credit and Debit Cards: While contactless payments dominate, credit and debit cards remain widely used, especially for large purchases and online transactions. Cards integrated with contactless technology are increasingly common in these areas.

Changing Payment Habits in Turkey

Turkey is also undergoing a notable transformation in payment preferences. In recent years, digitalization has accelerated, and contactless payment solutions have become more widespread. Similar to trends in Europe, cash usage is declining in Turkey, with contactless payments gaining popularity.

Key Developments in Turkey:

  • Contactless Payments on the Rise: According to data from the Interbank Card Center (BKM), over 60% of card payments in Turkey in 2023 were made via contactless methods. In major cities, public transportation, grocery shopping, and daily expenses are increasingly paid using contactless cards and mobile payments. Turkey is one of the fastest-growing markets for contactless payment adoption.
  • Digital Wallets and Mobile Payments: Digital wallets and mobile payment solutions are becoming more popular, especially among younger generations. These methods are seen as faster and more convenient, contributing to their growing use in e-commerce transactions.
  • Decline in Cash Payments: While cash remains a prevalent payment method in Turkey, its usage has declined significantly, particularly in restaurants, cafes, retail stores, and e-commerce platforms. The pandemic played a major role in accelerating this shift toward digital payment systems.

Similarities and Differences Between Europe and Turkey

Both Europe and Turkey stand out as rapidly digitalizing regions in terms of payment systems. While contactless payments and digital wallets have already become the main payment methods in Europe, Turkey is also following this trend at a significant pace. While some European countries are approaching the goal of becoming entirely cashless societies, cash payments still maintain a certain level of presence in Turkey, though this percentage is decreasing every year.

Another similarity is that in both regions, the younger population adopts digital payment methods more quickly. Digital wallets, mobile payment solutions, and contactless cards are widely used among tech-savvy consumers in both Europe and Turkey.

However, in Europe, especially in Scandinavian countries, digital payment systems are moving entirely toward cashless economies, whereas this transition in Turkey is slower but progressing steadily. The spread of digital payment systems in Turkey is supported by the rapid adoption of contactless payment solutions in public transportation and the retail sector.

In Europe, payment habits revolve around contactless payments, digital wallets, and mobile payment solutions. In a large part of Europe, contactless payment technologies have become one of the most common payment methods. A similar significant change is also observed in Turkey. Contactless payments, especially in daily shopping, have experienced a substantial upward trend, and the rate of cash usage is rapidly declining. In both regions, the future of digital payment systems continues to evolve in line with expectations for speed and security.