Developed in a joint effort between DIMOCO and Juniper Research, this year’s report marks the fourth annual publication of DIMOCO’s white paper to provide comprehensive insights into the European digital payment market.
The publication presents the primary factors shaping industry growth and assessing the opportunities presented by emerging payment mechanisms, including carrier billing, credit and debit cards, SEPA direct debit and SEPA credit transfers. Insights also include a series of recommendations for current and prospective players across the payments value chain.
“Online merchants are facing a real threat of losing customers over lack payment choices,” said Gerald Tauchner, president & CEO. “As competition in the online space intensifies, merchants that offer payment choices and an optimal payment experience will not only ensure the acquisition of a single transaction, but more importantly a loyal customer for the long term.”
Additional takeaways from “The Future of Digital Payments in Europe” 2017 publication includes:
Mobile Payment Market Growth on the Rise:
- In 2015, the value of mobile and online physical, virtualised and digital goods sales in Europe passed the €500 billion mark for the first time, reaching €570 billion.
- Overwhelmingly, the momentum for growth comes from the mobile devices becoming primary mechanisms for the access, payment and (for digital goods) delivery of services.
Carrier Billing Revenue Forecast Shows Significant Growth:
- Revenues from digital content billed via carrier billing in Europe will increase sharply to more than €11.5 billion by 2021 (average annual increase of 27%)
- Carrier billing is believed to account for around 21% of all European digital content billing by 2021 (presently 11%)
Industry Growth and Legislation Drive Increasing Need for Payment Services:
- European credit/debit card spend on digital content will reach €36 billion by 2021 (average annual increase of 7.9%)
- With the increasing liberalisation of the European payments market, enshrined in key legislation such as PSD (Payments Service Directive) and PSD2, the traditional banking monopoly of offering SEPA direct debit services has eroded, allowing payment service providers to enter the space.