Visa. Mastercard. For years, these names defined how Europeans paid online. But the tide is turning. Cards are losing ground to a faster, smarter, and often cheaper set of alternatives. The future of online payments in Europe is already taking shape, and if you’re a consumer or business, you should know what’s coming.

Here’s what to expect and how it’ll affect the way people shop and businesses get paid.

1. Real-time payments are becoming the new normal

Remember when waiting 2-3 business days for a payment to clear was just part of life? Not anymore. Thanks to instant payment systems like SEPA Instant and Swish, real-time payments are taking over.

The EU is making real-time payments a legal right. As of 2025, banks are required to offer instant euro transfers at no extra cost. This means consumers will be able to move money between accounts in seconds, 24/7, even across borders.

What it means for consumers:
No more payment delays, fewer bounced transactions, and faster refunds from online shops.

What it means for businesses:
Faster settlements improve cash flow, reduce refund delays, and allow for quicker delivery or access to services. Real-time capabilities also help businesses better manage operational and financial planning.

2. Open banking is unlocking better ways to pay

Open banking is not just a buzzword. It’s the tech infrastructure behind the Pay by Bank trend sweeping Europe. With open banking, licensed third parties can connect directly to your bank (with your permission) and initiate secure payments.

Solutions built on this technology allow users to authorise transactions directly from their bank apps. No card numbers. No expiry dates. No CVV.

What it means for consumers:
They can pay faster, often at a lower cost, and reduce the risk of fraud.

What it means for businesses:
With Pay by Bank, you can lower payment processing costs, reduce fraud risk, and get instant confirmation of transactions. No chargebacks, no card expiry issues, and improved trust at checkout.

3. Digital wallets are still rising – but changing shape

Apple Pay, Google Pay, Klarna, and local wallets like Lydia (France) or Vipps (Norway) continue to dominate day-to-day transactions. But behind the scenes, wallets are evolving. Many now connect directly to bank accounts or open banking rails instead of relying on stored cards.

What it means for consumers:
Smoother checkouts and more control over their spending. Plus, more wallets will offer features like delayed payments, spending insights, and instant refunds.

What it means for businesses:
Supporting a wide range of local wallets is key to improving checkout conversion, especially on mobile. Wallets can also drive higher repeat purchases thanks to features like one-click payments and financing options.

4. Cards won’t vanish overnight – but they’re losing power

Make no mistake: cards will still exist. But their dominance is fading. As Pay by Bank and account-to-account (A2A) methods gain traction, cards are being sidelined. Especially as more merchants drop card payment options due to high fees and fraud risk.

What it means for consumers:
Older generations of payers are likely to continue using cards, but younger customers and the variety of payment methods at checkouts will push them towards alternative payments that are faster and cheaper.

What it means for businesses:
By reducing reliance on cards, businesses can lower transaction costs, avoid chargebacks, and reduce cart abandonment caused by failed authorisations or expired credentials.

5. New regulations are making payments safer and smarter

With PSD3 and the Financial Data Access (FIDA) regulation on the way, consumers can expect:

• Stronger protection against fraud
  
• Better control over who accesses their data
  
• More competition among providers, which equals better prices and experiences

What it means for consumers:
They’ll get more transparency, fewer fees, and stronger guarantees in the event of issues. Plus, switching providers will be easier than ever.

What it means for businesses:
New regulations mean more responsibility, but also new opportunities. By staying compliant and partnering with payment providers that are already aligned with these updates, businesses can build customer trust and avoid costly legal or technical adjustments down the line.

How businesses can keep up

The payment landscape in Europe is rapidly evolving, and businesses relying on outdated systems risk being left behind. Today’s consumers expect more than just convenience. They want speed, trust, and payment methods that feel native to their location and lifestyle.

Here’s what businesses should focus on:

• Offering real-time, bank-to-bank payments to reduce processing costs and improve settlement speed
  
• Supporting local wallets and alternative methods to boost conversion rates in key European markets
  
• Streamlining the checkout experience by eliminating unnecessary steps and offering preferred payment options
  
• Staying compliant with PSD3 and evolving open banking regulations to protect customer trust

Navigating all of this may seem complex, but working with the right partner can make it straightforward.

Payop’s platform is designed with these exact challenges in mind, offering access to over 500 local and global payment methods, including real-time bank transfers, digital wallets, and the Pay by Bank solution.

With coverage across key European markets and a focus on conversion, compliance, and smooth integration, Payop helps businesses stay in step with how Europe pays.