Digital wallets and mobile payments rise across Europe

The landscape of consumer payments is shifting toward mobile devices and digital wallets. In the eurozone, data from the European Central Bank indicates that while cash accounted for 52 percent of point-of-sale payments in 2024, mobile payments have nearly doubled their market share compared to 2022, reaching approximately 6 percent.

Digital wallets like Apple Pay and Google Pay utilize tokenization, a process where a unique digital token replaces the actual card number during transactions. This provides enhanced security, as the real card data is not transmitted to the merchant. Additionally, mobile payments often incorporate biometric authentication, such as fingerprints or PINs, to provide an extra layer of protection against unauthorized use.

In Slovenia, local solutions like Flik allow for immediate transfers and payments via smartphone, facilitating everything from splitting bills with friends to purchasing transit tickets. Despite the rise of mobile technology, physical cards remain a primary non-cash payment method in the eurozone, particularly for larger transactions and online shopping.