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Market Research Report

Payments Landscape in Portugal: Opportunities and Risks to 2022

Published by GlobalData Product code 604399
Published Content info 48 Pages
Delivery time: 1-2 business days
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Payments Landscape in Portugal: Opportunities and Risks to 2022
Published: February 19, 2019 Content info: 48 Pages

Cash remains the most preferred mode of consumer payments in Portugal, accounting for more than half of the overall payment transaction volume in 2018. However, the share of cash payments has been declining over the past five years, with the rising popularity of electronic payments supported by government initiatives and improved payment infrastructure.

The average number of monthly card payments in Portugal stood at 6.8 - higher than most of its peers including Switzerland, Luxembourg, Austria, Spain, Germany and Greece. The Portuguese payment card market is mainly driven by debit cards, which accounted for 94.2% of the overall card payments value in 2018. This growth was mainly supported by the rising banked population, with Banco de Portugal - the country's central bank mandating banks to offer basic bank accounts at a minimal cost.

To further encourage banking penetration, banks are also expanding their reach to remote locations via mobile banking branches, as well as digital channels. Due to the introduction of instant payments in 2018, restrictions on cash transactions, a cap on the interchange fee and the increased adoption of contactless technology, electronic payment usage is set to surge over the forecast period (2018e-22f).

The report "Payments Landscape in Portugal: Opportunities and Risks to 2022", report provides detailed analysis of market trends in Portuguese cards and payments industry allowing banks and card issuers to identify segment dynamics and competitive advantages. It provides values and volumes for a number of key performance indicators in the industry, including cash, credit transfers, direct debits, cards, and cheques during the review-period (2014-18e).

The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, transaction values and volumes during the review-period and over the forecast-period (2018e-22f). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes, details of regulatory policy and recent changes in the regulatory structure.

Key Highlights

  • In order to promote electronic payments and reduce dependence on cash, in August 2017 the Portuguese government restricted the amount of cash per transaction to €3,000 ($3,436.64) for residents and €10,000 ($11,455.48) for non-residents. It also mandated personal income tax payments over €1,000 ($1,145.55) to be made by bank transfer, cheque or direct debit, with failure to do so incurring a fine of between €180-4,500 ($206.20-5,154.96). Furthermore, the European instant payments system, SCT Inst, was introduced in Portugal in September 2018, enabling fund transfers of up to €15,000 ($17,183.22) in real-time within 10 seconds.
  • Digital-only banks also made inroads into Portugal during the review period. For instance, the Germany-based mobile-only bank Number26 launched operations in Portugal in December 2016. Account holders are offered a free N26 account and Mastercard debit card that can be used to make payments in stores and online. The bank also offers its premium range products in the country, the N26 Black and N26 Metal. Banco BNI Europa is another digital-only bank operating in the country.
  • The growing preference for payment cards has encouraged several international players to strengthen their business in Portugal. In December 2018, UnionPay signed an agreement with Millennium BCP to issue its cards in Portugal. The agreement enables Millennium BCP to offer both consumer and commercial UnionPay cards, including credit, debit and prepaid cards. Similarly, in November 2018, EVO payments - a US-based payment service provider - partnered with EuroBic to launch merchant acquiring and payment services in Portugal.


The report provides top-level market analysis, information and insights into the Portuguese cards and payments industry, including -

  • Current and forecast values for each market in the Portuguese cards and payments industry, including debit and pay-later cards.
  • Detailed insights into payment instruments including cash, credit transfers, direct debits, cheques, and cards. It also, includes an overview of the country's key alternative payment instruments.
  • E-commerce market analysis.
  • Analysis of various market drivers and regulations governing Portuguese cards and payments industry.
  • Detailed analysis of strategies adopted by banks and other institutions to market debit and pay-later cards.

Reasons to buy

  • Make strategic business decisions, using top-level historic and forecast market data, related to the Portuguese cards and payments industry and each market within it.
  • Understand the key market trends and growth opportunities in the Portuguese cards and payments industry.
  • Assess the competitive dynamics in the Portuguese cards and payments industry.
  • Gain insights into marketing strategies used for various card types in Portugal.
  • Gain insights into key regulations governing the Portuguese cards and payments industry.
Table of Contents
Product Code: FS0210CI

Table of Contents

  • Market Overview
  • Executive Summary
  • Card-based Payments
  • E-commerce Payments
  • Alternative Payments
  • Payment Innovations
  • Payments Infrastructure & Regulation


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