While visiting Europe is a dream come true for many of us, only with proper preparation and planning can this trip be smooth sailing for you and your loved ones. Apart from all the Schengen Visa and travel insurance formalities, one point that stands out is knowing how to pay for things in Europe.
In this article, we will discover what payment methods are popular in different European countries so that you can choose the most convenient payment option for your travel.
How to Pay in Europe?
Payment methods shifted dramatically in Europe after the COVID-19 pandemic. These days, most payments are made through digital wallets like Klarna and PayPal.
Other newer ways to pay for things in Europe include the Open Banking process (in the United Kingdom), SEPA (Single Euro Payments Area Direct Debit), and the BNPL (Buy-Now-Pay-Later) payment option.
Different Payment Methods in Europe
Here are some popular payment methods accepted all over Europe that you can opt for when visiting this region:
Cash
Cash payments have been accepted for a very long time, but due to the pandemic, this physical form of payment has been replaced with other methods. However, payment through cash in physical stores is still popular in Europe.
Pros:
Generally accepted payment form.
No acceptance charges are required.
Available through banks or ATMs.
Cons:
The exchange of various currencies can be inconvenient.
Security issues.
Inconvenience in carrying cash, as it necessitates safe storage and occupies much space.
Online
This form of payment is best when shopping for things online. You simply have to provide the details of your debit or credit card, including the CVV code, card expiration date and card number, and a secure payment gateway will allow you to purchase your item of choice without having to make any physical payment.
Pros:
- Easy linking of bank cards to any mobile app for quick and convenient purchases.
Cons:
Debit or Credit Card
Most businesses across Europe accept debit or credit cards for payment, especially while catering to tourists and travellers. Opting for a card as a payment method also saves you from stressing over carrying cash with you wherever you go. Remember, credit cards used in Europe must feature the “chip and pin” software technology.
Pros:
Cons:
Mobile Payments
This has become one of the most accepted payment modes in recent years. Mobile payment refers to payments made through your mobile phone and may include using tokenised payment cards, QR codes and even SMS.
Pros:
Cons:
Online Payment Methods in Europe
Online payment covers a host of payment modes that are available in Europe for travellers. These are a few popular online payment methods that are accepted by European countries:
Card for Online Payment- Popular
Europe credit cards and debit cards used for online payment include MasterCard, Visa and American Express. These cards are generally accepted all over Europe for business transactions.
Digital Contactless Payments - Advanced technology has now made it possible to make payments through contactless cards. This way, you simply have to “wave” or “tap” your card over a card reader to make a payment.
E-wallets for payment - Mobile wallets are hugely popular in Europe because they are convenient and quick to use. E-wallets that are mostly used for payments in Europe include PayPal, Samsung Pay, Google Pay and Apple Pay.
Recently, PayPal alternative Europe options like Sofort, Paysafecard, Multibanco and Blik have emerged as the most opted-for payment platforms. They provide services, such as contactless payment through mobile devices, online purchases and money transfers, thereby widening the range of payment choices in Europe.
Direct Debit Payment Option - Subscription-based businesses resort to this payment option, as it allows them to accept recurring payments. While direct debit is specific to each country, Single Euro Payments Area Direct Debit allows payments across borders, encouraging direct debit in Europe.
BNLF Payment Option - The buy-now-pay-later form of payment has also seen a rise in the European market. This form provides a short-term loan amount to an end-user, and some popular BNPL payment platforms do not charge interest, making it more acceptable among individuals who don’t own a credit card.
Alternative Methods of Payment Accepted in Prominent European Countries
An alternative mode of payment in Europe is used for financial transactions without resorting to popular card schemes (like MasterCard and Visa) or cash. Also called an Alternative Payment Method (APM), this payment method has grown popular in Europe.
The following are some popular APMs used in prominent countries of Europe:
The UK - UK Direct Debit
Belgium - Payconiq, Bancontact
Germany - GiroPay, Paysafecard, Sofort
Italy - Postepay/Cartasi, Moneta
France - Meal Vouchers, Cartes Bancaires
Spain - SEPA, Trustly
Poland - Blik, Przelewy24
The Netherlands - Hyperwallet, iDEAL, BitPay
Is Travel Insurance Necessary in Europe?
If you have researched how to plan a trip to Europe, you must have come across the fact that travel insurance is compulsory to obtain a Schengen Visa. Schengen Region is a group of 29 countries in Europe with a common visa and relaxed cross-border movement.
When travelling abroad, you must have an insurance policy that will cover unexpected situations you are not prepared for. The risk of falling sick in Europe, losing your valuables while travelling from one country to another, or even having a major medical emergency can leave you distressed.
Our goal at Reliance General Insurance is to provide you with all the necessary precautions that you will need despite carrying cash with you on your Europe trip. With our
Europe travel insurance cover, you can sit back and enjoy your holiday without giving a thought about, “What if something goes wrong?”.
Explore your options by browsing our website so that you can get the most out of your insurance policy.
Conclusion
So, now that you are informed about the different online and offline payment options you can use while visiting Europe, your trip will be a successful one. Nevertheless, opting for travel insurance is non-negotiable, so choose wisely.
Frequently Asked Questions
Which is the safest way to make online payments?
E-wallets or digital wallets are the safest online mode of payment. This is because they include factors like tokenisation, biometric authentication and encryption, which can be tough to access when an unauthorised user tries.
Is it preferable to carry cash, or is a credit card more beneficial for making payments in Europe?
When touring Europe, it is best to carry a mix of plastic and cash. Certain stores accept only cash, which can make it difficult to purchase items when no other options are available. Whenever possible, use your smartphone for online purchases and payments.