Market Trends of Belgium Payments Industry
This section covers the major market trends shaping the Belgium Payments Market according to our research experts:
Increase in E-commerce is Expected to Drive the Payments Market in Belgium
The real-time accessibility of products and their availability 24 hours a day on e-commerce platforms disrupts several aspects of consumer shopping behavior, including online payment methods.
The payment market is undergoing a significant transformation as a result of digitization. E-commerce developments pave the way for new digital payment solutions and payment industry participants, leading to the advent of a cashless society.
According to the International Trade Administration, in 2020, e-commerce accounted for 108 million transactions. Card Payments were the country's most preferred way of payment, followed by PayPal. 58% of all the online transactions were conducted by mobile.
Further, laws such as the mandatory acceptance of electronic payment processes by all the commercial establishments in the country as an action against fraud are increasing the adoption of digital payment methods in the country.
Mobile Payment Segment is Expected to Gain Significant Traction
Mobile payment software applications were developed to make payments on smartphones and tablet devices, including mobile wallets, such as PayPal, Apple Pay, Android Pay, and Samsung Pay, and specifically designed apps from banks or retail companies.
Recently, more and more alternative payments are being developed, tested, and introduced in the country. Mobile payments are becoming increasingly popular as the applications can be used to perform the daily banking needs using a mobile phone or a tablet and can also be used as an alternative to cash and cards.
Mobile payments can be made via digital wallets or bank cards to make cashless and contactless payments. These applications can also be used to make payments to friends and family.
Further, due to technological advancement, banking apps include new features that make payments seamless and easy for users. For instance, in October 2021, the Belgium-based payments platform Payconiq by Bancontact integrated a new Scan for Change option, facilitating payment donations via QR code in the mobile app.
With increasing threats related to online security from hackers and scammers, banking providers are implementing features such as facial recognition, fingerprint scanning, and other biometric verifications to increase the security of the applications.
