Instant transfers and debit cards are the most used payment methods for Portuguese in 2023

Instant transfers and debit cards were the preferred and most used payment methods by Portuguese in 2023, according to the results of the 13th Payment Methods Trends Report, issued by Minsait Payments, a company of the Indra Group.

Prepared in collaboration with Analistas Financieros Internacionales (AFI), the report collects the opinions of more than 4,800 internet banking users from Spain, Italy, Portugal, the UK and Latin America (Argentina, Brazil, Chile, Colombia, Ecuador, Mexico and Italy). Peru and the Dominican Republic).

Some highlights from this report include the fact that instant transfers drive Portuguese people's preference for online payments (44.7%) and for in-person purchases, debit cards (42.4%) are the most used payment method.

According to the study, 53.4% ​​of Portuguese have only one bank account, while 29.5% have more than one account, with 17.1% reporting having more than one bank account and facing a problem with their bank account.

Another finding is that Portugal is the third country where contactless payments are highest (59%), after the UK (69%) and Spain (72%).

The study also identifies key trends that will be key for the sector in 2024. Trends for 2024 include the necessary speed of daily transfers, the popularization of payment methods, open data and borders, efficiency, and increased security in transactions.

The report reveals how the use of electronic payments has become widespread in Latin America and is accelerating in Europe, where about a third of Europeans say they have turned to digital technology in the past three years, in the wake of the Covid-19 pandemic and coinciding with the emergence of other countries. Alternative payment methods.

“In this sense, in Portugal, instant transfers led Portuguese people to prefer online payments (44.7%), while for personal purchases, the debit card emerged as the most used payment method (42.4%),” reveals Minsait.

The study highlights that among individuals, instant transfers still top the preferences of Portuguese (38%), at the expense of cash (30%), and one of the reasons that can explain this situation is the success of MB Way, a mobile payment solution company for face-to-face payments. To-to-face and interpersonal payments.

“In Portugal, the proportion of the adult population with bank accounts is 92.6% and the proportion of the adult population using the Internet is 84.5%, which are higher values ​​than the previous year of 92.3% and 82.3% respectively.” Statement.

“The use of cash is losing ground, and among the most used payment methods, the bank card stands out again and remains at the top of the list of payment methods, with 94.1% of Portuguese having a credit card., 56.4% have a credit card and 32.3% have prepaid cards.” , according to the report which shows that on average, this means that each Portuguese person has 1.8 debit cards, 1 credit card and 0.5 prepaid cards.

In a sector increasingly concerned with security issues, contactless payments using physical cards are becoming more popular in Europe than in Latin America, according to the study.

In this assessment, Portugal appears as the third country where contactless payments are highest (59%), surpassed only by the United Kingdom (69%) and Spain, which tops this index, with 72% of the population choosing this digital option. for your payments.

The report also reinforces the bank as a major provider of financial services, but the status quo is changing in some Latin American countries, with new banks increasing their presence and vying for banking dominance in countries where they were already significant, such as Colombia and Brazil. .

In Europe, Portugal presents a different behavior compared to its peers, with almost a third of the population currently working with a new bank.

According to the study, the bank's dominance as a card supplier is slightly threatened in credit or debit cards, but is weakening in prepaid cards. In this way, banks continue to be the exclusive supplier of payment methods (cards) for more than two-thirds of the European population, with the exception of Portugal, where neobanks are taking over positions in this service sector.

Trends for 2024

The 13th Payment Trends Report identifies the needs for progress and growth in the payments sector in the coming years.

“The speed of more common digital transfers is an unavoidable assumption of the sector and a public policy goal in almost all the countries analysed, laying the foundations for financial inclusion and the necessary efficiency in operations,” says Minset.

The report concludes, “Security, ease of use, freeness, and speed are the main factors that determine the choice of payment method, according to Minset Payments, and increasing risks and vulnerabilities are the biggest challenge the sector faces throughout the year.” “The next five years.”

The study warns of the need to increase factors such as security and highlights “a window of opportunity for cloud services and the application of artificial intelligence in fraud prevention.”

The context of digital payments and its social and environmental perspective is one of the trends analyzed in depth in the 13th Minsait Payments Payment Trends Report, which the payments technology company presents every year and which serves as a reference point for the payments sector.