Portugal
Portugal, with nearly 900 years of history, is located on Europe’s Iberian Peninsula, bordering Spain and the Atlantic Ocean, including the Azores and Madeira. Portugal’s population reached 10.3 million in 2020 and is expected to rise to 13–14 million by 2025 due to migration from Ukraine and Russia. Portuguese is spoken by over 220 million people worldwide, across Brazil, Angola, Mozambique, and other countries.
Card penetration in Portugal is high, with 29 million debit and credit cards in circulation, averaging 2.29 cards per capita, and card transactions accounting for 83% of payments. The most popular payment method is MultiBanco, a local debit card, while credit cards are dominated by Visa and Mastercard and debit cards by Visa Electron and Maestro.
Digital and contactless payments in Portugal have grown rapidly, accelerated by COVID-19. Apple Pay and Samsung Pay allow users to make secure payments using smartphones, driving the adoption of digital wallets and cashless transactions.
E-commerce in Portugal is booming, with spending reaching €4.4 billion in 2020. Over 50% of the population shopped online, and by 2025, online users are projected to reach 6 million, with a market volume of €7.72 billion.
Portugal is also an active player in international trade. In 2023, exports totaled approximately €95 billion, with key products including machinery, vehicles, chemicals, and agricultural goods. Imports reached around €108 billion, mainly consisting of fuels, machinery, and consumer products. Major trading partners include Spain, Germany, France, and the United States, reinforcing Portugal’s strong position in European and global commerce.
Portugal’s payment system is regulated under Decreto-Lei No. 91/2018, transposing the EU PSD2 Directive, promoting online banking, digital wallets, and contactless payments, while reducing reliance on cash and checks.
Top banks
Portugal’s banking sector is well-developed, featuring a mix of local and international banks that provide comprehensive financial services. Leading institutions such as Banco Santander Totta, Millennium BCP, Caixa Geral de Depósitos, and Banco BPI offer retail, corporate, and investment banking solutions. These banks support digital banking, mobile payments, and online transactions, catering to a growing population of tech-savvy consumers. With strong regulation under Banco de Portugal and integration with international financial networks, Portugal’s banks play a key role in promoting financial inclusion and economic growth.
.png)
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.
ABANCA
ABANCA Corporación Bancaria is a Spanish banking institution with its headquarters in Galicia. It was created in 2011 as NCG Banco after the "bankification" of the savings bank Novacaixagalicia. ABANCA operates in several regions of Spain, including Galicia, Asturias, and the province of León, as well as in Portugal, the UK, France, Switzerland, Brazil, Venezuela, Panama, Mexico, and the US. In Portugal, it operates through a branch with its headquarters in Lisbon.
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.
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.
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.
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.
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).
Top payment methods
Portugal’s payment landscape blends traditional and digital solutions, including debit and credit cards, MultiBanco, Visa, Mastercard, Visa Electron, Maestro, MB WAY, Apple Pay, and Google Pay. Growing contactless payments, e-wallets, and online banking have boosted cashless transactions and e-commerce, supporting financial inclusion and a modern, secure digital payment ecosystem.
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
Mastercard is a global payments leader, dominating the co-branded card market in Europe and key countries like Brazil, Canada, and Germany. Known for secure, contactless, mobile, and digital payment solutions, Mastercard drives e-commerce, fintech, and online banking innovation worldwide.
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, accepted almost everywhere. It’s known for secure, fast, and reliable payments, positioning itself as “the best way to pay and get paid by everyone.”
Google Pay
Google Pay enables secure digital payments using stored credit or debit cards for online, in-app, and in-store purchases. It offers a fast, seamless checkout experience on Android devices and supports 3D Secure authentication for EU and UK-issued cards.
Paybybank
At checkout, when you select Pay by Bank as your online payment method, you can securely pay directly from your bank account. Simply choose your bank, which generates a secure payment link to authorize the transaction. Once authorized, you are redirected back to the checkout page. No card details, no account creation, and no personal financial information are shared, making Pay by Bank a safe, fast, and convenient online payment solution.
This digital banking payment solution is offered by PayOp, covering almost all of Europe and competing with top online payment providers in the e-commerce and fintech market.
ApplePay
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, digital wallets, and contactless payments are becoming increasingly popular. Below, we explain some particularities in relation to each of the referred payment methods, supporting e-commerce growth, cashless transactions, and financial inclusion in Portugal:
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 Processing News
You Won’t Learn This in Business School – Real Industry Insight
The global payments industry evolves faster than ever — powering everything from digital banking to eCommerce transactions. Yet few truly understand how payment processing, fintech innovation, and financial technology shape the world economy. That’s where Processing News comes in. At Processing News, we don’t just report on the payments ecosystem — we’ve built, run, and innovated within it. Our team of experts includes former fintech executives, payment system architects, compliance officers, and technology insiders who bring real-world experience to every article. We launched Processing News to be the Wikipedia of Payments — accessible, in-depth, and always accurate. In an era of clickbait and recycled press releases, we deliver trusted payments journalism rooted in industry expertise and data-driven analysis. Whether it’s new payment regulations, card network updates, emerging fintech startups, or fraud prevention trends, we provide clear, credible insight into what truly drives the global payment processing industry.
Welcome to Processing News — Real people. Real experience. Real payments journalism.
Contact us:
