Portugal
With almost nine hundred(900) years of history, Portugal is one of the oldest countries in the world. Geographically situated on Europe’s west coast, on the Iberian Peninsula, it borders Spain to the north and east, and the Atlantic Ocean to the west and south. It also includes the Autonomous Regions of the Azores and Madeira, two archipelagos located in the Atlantic Ocean.Data from 2020 indicates that Portugal has a population of approximately 10.3 million, with about 47% of that population considered to be working. We think that by 2025 it should be around 13-14 million people coming from different backgrounds as it has been a big migration from Ukraine due to the Russian invation and from Russia. those people don’t support their president and find a peace here. The Portuguese language is spoken by more than 220 million people, spread over almost every continent. All thoue counties speak portuguese: Brazil, Mozambique, Angola, Portugal, Guinea-Bissau, East Timor, Equatorial Guinea, Macau, Cape Verde, and São Tomé and Príncipe.
WHICH CARD PAYMENTS ARE COMMON IN PORTUGAL?
Card penetration is high in Portugal, thanks to a chip-and-password culture that dates back 30 years. The country has 29 million debit and credit cards in circulation, corresponding to 2,29 number of cards per capita, accounting for 83% of transactions.The most popular payment method is the MultiBanco, a local debit card. This is a post-paid option, where a reference is generated at checkout and then paid through an ATM with a debit card or via online banking. Covid-19 has made a significant impact on e-commerce spending in Portugal. More than 50% of the population shopped online in 2020, with sectors such as supermarkets, retail and media benefiting from the largest increase. Credit card payments require the use of a company accredited for this purpose. The most popular card networks are Visa and Mastercard for credit and VisaElectron and Maestro for debits.
In our country there has been a growing use of the 3D-Secure service, which allows payment by entering a unique usage code sent by SMS to the cardholder’s phone.
Maestro is a debit product within the Mastercard offering. Maestro cards can be used for payments in stores and to withdraw cash from ATMs. This payment method requires electronic online authorization for almost all transactions, although Mastercard’s rules allow minimum limits to be set only for Maestro EMV chip transactions.The indications to date are that electronic wallets will be the future. These will replace physical wallets by paying for purchases using smartphones.
Apple Pay through its NFC (Near Field Communication) payment system allows information such as credit or debit card details to be extracted by the application, allowing payment through the phone.Samsung has Samsung Pay whose operation is similar to Apple Pay and which has the additional advantage of offering rewards for daily purchases.
Payment instruments allow moving funds from a payment account or electronic money. Over the past few years, there has been a significant change in payment habits in Portugal: electronic payment instruments have gained importance (cards, direct debits and credit transfers) and checks, on the contrary, have significantly decreased. Structure of use of payment instruments in 2021.
The provision of payment services to bank customers is regulated by the Legal Framework for Payment Services and Electronic Money, set out in Decreto-Lei No. 91/2018 of 12 November. This transposes into national law Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November on payment services in the internal market (revised Payment Services Directive – PSD2), excluding payment transactions made by cheque (regulated by a separate regime) and cash (notes and coins).The legal framework for payment services and electronic money regulates access to the provision of these services and the exercise of the activity of payment service providers. It also establishes pre-contractual and post-contractual information duties and the rules governing the contractual rights and obligations of users and payment service providers. According to the latest information, 85% of the Portuguese population, more than 8 million people, use the Internet and 71% of the Portuguese make purchases online. A market study prepared by CTT, e-Commerce 2021, reveals that in 2020 the Portuguese spent about 4.4 billion euros on online purchases, with the average annual spending per e-buyer on online purchases reaching 998 €.
More numbers that prove that the e-commerce panorama in Portugal is very positive:
• The e-commerce usage rate registered a growth of 5.2% in 2021, compared to 2020;
• It is estimated that the number of e-commerce users in Portugal will grow by 7% to 6 million users by 2025;
• It is also expected that by 2025 the market volume will reach 7.72 billion euros. The e-commerce market potential in Portugal is quite significant and to maximize your online store and reach more consumers, it is important to know the best online payment methods available in the country.
Its still a small market if we compare it to Spain, but imagine that half of the population buys online. Its time for online businesses to enter this market. Weather u are Spanish brand or French or Uk or Germany or Sweden or any other european or Chinese company. We belive that together we can grow the economy.
Top banks
Currently, there are 29 banks registered in Portugal. The five largest institutions account for 80% of total assets, and the seven largest collectively hold 88% of the country's banking sector assets. Caixa Geral de Depósitos (CGD), which is still state-owned, remains the largest player, followed by Millennium BCP, Santander Totta, Novo Banco, and Banco BPI. Montepio ranks sixth and has assets exceeding 10 billion euros, while all other banks have total assets below 10 billion euros. In terms of specific market segments, however, certain banks, particularly Santander, are beginning to challenge CGD’s dominant position. Novo Banco, Millennium BCP, and Santander all hold larger volumes of outstanding loans to companies and the public sector than CGD. The ranking of Portugal's largest banks by assets in 2019 shows that the top five banks represent about 80% of total assets in the sector. These five leading banks—CGD, Millennium BCP, Novo Banco, Santander Totta, and Banco BPI—continue to dominate in terms of total assets. CGD, historically the largest, has seen increasing competition from other banks, particularly in commercial lending, business services, and digital banking. As players like Santander Totta gain ground with business and corporate clients, CGD’s traditional market dominance is being tested, although it remains the largest and one of the most established banks in Portugal.
Novo Banco
Novobanco is the 4th largest bank operating in the national market, with 1.6 million customers, assets of 43.5 billion euros and a 9.8% market share in 2023. We have an omnichannel customer relationship model, with a complete and convenient banking experience, including secure digital channels, complemented by the recent and innovative proximity distribution model, with more than 292 branches and 20 company centers, covering the entire country. . With the most robust capital ratios, we have reinforced our market share in deposits and customer resources, which reach more than 34.5 billion euros, while guaranteeing the financing of the national economy, with support for families and companies, with more than 25.5 billion euros in credit granted. We value the training of our more than 4,200 professionals and support the community through social, cultural and financial inclusion programs. Our purpose is to contribute to the economic growth of Portugal, both for families and companies at all stages of their lives, in a sustainable and responsible way. Novobanco delivered strong results with record net income of €743mn and annual capital generation for the full year 2023, reflecting the continued growth of our banking businesses and confirming the sustainability and resilience of our capital accretive business model.
Millennium BCP
Millennium bcp group has over 30 years of history. It started operating in 1985 and became a history of success, benefiting from the opening and development of the Portuguese financial system. In the last three decades, we have been serving our Clients, individuals and companies, supporting their projects and presenting them with solutions adapted to their needs, innovating in our products and services in order to anticipate the market trends. According to latest financial reports the company's current revenue is $4.12 Billion.
Banco BPI
Banco BPI is a private Portuguese bank founded in 1981, headquartered in Porto. In 2017, the Spanish group CaixaBank acquired a majority stake, becoming the primary shareholder of BPI. BPI offers a variety of banking products and services, including current accounts, credit cards, personal loans, home loans, insurance, and investments. Through the BPI App, customers can access their banking services conveniently and securely. Internationally, BPI operates in Portugal, Spain, Angola, and Mozambique. In Angola, it is a leader in the business banking segment, holding a 50.1% stake in Banco de Fomento Angola (BFA), which serves around 750,000 customers. In Mozambique, BPI has a 30% stake in the bank BCI Fomento. If you're looking for a BPI branch in Portugal, you can consult their branch network on the official website. The mission of Banco BPI is to contribute to the financial well-being of its customers and the sustainable progress of society.
Santander Totta
As a global leader in financial services, we're transforming businesses and empowering communities with product, services, and contributions, but more importantly, we're enriching the lives of our clients. See the work we've done and how we're building a better world for everyone around us. Santander Totta is a bank in the Portuguese financial sector, with a broad customer base and over 600 branches spread across the country. Grupo Santander's presence in Portugal dates back to 1988, the year it purchased a stake of about 10% in Banco do Comércio e Indústria (BCI). Banco Santander, S.A revenue for the twelve months ending March 31, 2024 was $134.860B, a 35.7% increase year-over-year. Banco Santander, S.A annual revenue for 2023 was $129.242B, a 44.44% increase from 2022.
Caixa de Credito de Leiria
The Caixa de Crédito de Leiria (CCL) is a regional cooperative bank in Portugal, based in the city of Leiria. It has been serving the local community for many years, offering a range of financial services to individuals, businesses, and associations. While it primarily focuses on regional development, it is part of the larger Portuguese banking system and is subject to regulation and supervision by the Banco de Portugal (Bank of Portugal).
ActivoBank
ActivoBank is a digital bank in Portugal, part of the Novo Banco Group, offering online and mobile banking services since 1994. It provides a range of financial products, including current accounts, savings options, credit cards, loans, and investment services, all accessible through digital platforms. Known for low fees and user-friendly interfaces, ActivoBank caters to individuals who prefer managing their finances online. It is regulated by the Banco de Portugal, ensuring compliance with national and European banking regulations. The bank emphasizes transparency, security, and a seamless digital experience for customers in Portugal.
BBVA
BBVA (Banco Bilbao Vizcaya Argentaria) is a global financial group headquartered in Spain, founded in 1857. It is one of the largest banks in the world, operating in over 30 countries, including Portugal. BBVA offers a range of services, including retail banking, corporate banking, investment banking, and wealth management. Known for its focus on digital transformation, the bank provides advanced online and mobile banking services. BBVA is also committed to sustainability, integrating environmental, social, and governance (ESG) factors into its operations. It is regulated by banking authorities such as the Banco de España and Banco de Portugal.
N26
N26 is a German digital bank founded in 2013, operating entirely online without physical branches. Known for its user-friendly mobile app, N26 offers a range of financial services, including checking accounts, savings tools, personal loans, and insurance. The bank focuses on simplicity, transparency, and ease of use, providing customers with a seamless mobile banking experience. It operates in multiple European countries and the United States, and is regulated by financial authorities in each region. N26 is particularly popular for its low fees, international money transfers, and innovative features like real-time notifications and spending insights.
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Caixa Geral de Depósitos (CGD)
CGD has been at the forefront of Portuguese economic and social development. Based on a strong corporate culture and the highest ethical standards, rigor and professionalism, CGD has received over the years various awards and is recognized as a highly reliable, solid bank in Portugal’s banking sector, having merited the confidence of its many generations of costumers.
Top payment methods
Maestro
Maestro is a debit product within the Mastercard offering. Maestrocards can be used for payments in stores and to withdraw cash fromATMs. This payment method requires electronic online authorizationfor almost all transactions, although Mastercard's rules allowminimum limits to be set only for Maestro EMV chip transactions.
Mastercard
As one of the largest card brands in the world, Mastercard dominatesthe co-branded card market in Europe. It is also the leader incountries like Austria, Brazil, Canada, Colombia, Germany, Hungary, Venezuela, and in the Benelux among others.
Multibanco
One of the most popular methods in Portugal is Multibanco, which belongs to SIBS, a company internationally recognized as one of the largest payment processors in Europe and Africa. Multibanco (MB) goes beyond an ATM machine. It has an EFTPOS network known as Multibanco Automatic Payment and also provides mobile payment services such as MB Way and Mbnet. Multibanco references are a payment method that allows consumers to pay for their purchases both at ATMs and on the websites or applications of Portuguese banks. These references are usually generated on the merchant’s website at the time of purchase, or are later sent via e-mail or message, usually SMS, to the customer. Because it is a simple and secure solution, it is among the most used means of payment in online shopping by the Portuguese. A payment voucher for Multibanco includes a payment reference, an entity number, the payable amount and the expiry date of the voucher.
MB WAY
MB WAY is the first interbank solution that allows immediate payments and transfers via smartphone or tablet. Signing up for this service is quite simple and can be done at the ATM or via the app. Simply associate a card (debit or credit) to your cell phone number and define a 6-digit PIN to use the service. MB WAY offers a wide variety of services, allowing you to generate virtual MB NET cards, pay for purchases both in physical stores and online stores, send money to other users, and even withdraw money at the ATM without using your bank card. To make online payments with MB WAY, the buyer just needs to enter his or her cell phone number at the online store and immediately receives a request in the application to authorize the payment. MB WAY is a Multibanco solution.The popularity of virtual credit cards has been growing in Portugal. From 2020 to 2021, the use of this payment method grew to 22.4%. The possibility of not using your bank information when paying seems to please users who choose to create temporary virtual cards to make their purchases. Most customers prefer to use the MB NET service, because it allows them to generate virtual cards with a certain amount and define whether it is for a single purchase or for several purchases. These cards can be generated on the MB NET website or on the websites of some Portuguese banks. The debit on the card can be immediate (most common), or an authorization may be required (the amount is retained) and the value is withdrawn later.
Visa
Visa is the world's largest global card network by transaction value, ubiquitous worldwide. Visa positions itself as "the best way to pay and get paid by everyone".
Apple Pay
Apple Pay through its NFC (Near Field Communication) payment system allows information such as credit or debit card details to be extracted by the application, allowing payment through the phone. Samsung has Samsung Pay whose operation is similar to Apple Pay and which has the additional advantage of offering rewards for daily purchases.
Google Pay
With Google Pay, shoppers can make purchases using credit or debit cards stored in their Google account. Shoppers get to experience a simpler checkout process whether they are buying from theirAndroid devices, on the web, or in-store through POS terminals.When a shopper pays with Google Pay in apps and on websites, Google Pay shows a payment sheet where they select their preferred card payment method and confirm their purchase. Google Pay supports liability shift for Discover, Mastercard, and Visa cards issued in the EU or the UK. Google Pay does not support liability shift for American Express, JCB, or Visa cards issued outside of the EU or the UK. To get this liability shift when using Google Pay, you need to authenticate the transaction with 3D Secure.
Paybybank
Payment method offered by PayOp which covers almost all the Europe and can compete with key players on the market.
Concluding remarks
In Portugal, payment habits are quite similar to those in other developed countries. More precisely, cash, debit cards and credit cards are all widely accepted forms of payment. Additionally, mobile payments and contactless payments are becoming increasingly popular. Below, we explain some particularities in relation to each of the referred payment methods:
Cash
Cash is widely accepted, especially in smaller towns and rural areas, but digital payments are common in urban centers.
Credit and Debit Cards
Credit and debit cards, including major international brands, are popular, with contactless payment options available at many establishments.
Mobile Payments
Mobile payment methods, including local solutions and international options like Apple Pay and Google Pay, are gaining popularity, particularly among the younger population.
About us
Processing News is an Online Wikipedia of the payment world. We collect and publish information about payment habits in different countries, describing methods that payers use in their daily life.
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