E-commerce in Portugal: trends, consumer habits, and payment optimization

E-commerce in Portugal is expanding rapidly, driven by shifting consumer habits and the growing adoption of digital payments. This transformation represents a major opportunity for merchants looking to optimize their online presence and offer payment solutions tailored to the expectations of Portuguese consumers.

Sustained e-commerce growth

In 2021, approximately 40% of Portuguese people made online purchases, marking an increase of 7 percentage points compared to the previous year, the strongest annual growth ever recorded in this sector. This trend continued in 2022, with Portuguese consumers spending 10 billion euros online, an increase of 36.2% compared to 2020. Projections suggest the Portuguese e-commerce market is expected to reach 7.13 billion euros in 2023 and 9.3 billion euros by 2025. 

These figures illustrate the growing adoption of e-commerce in Portugal, with a marked preference for online purchases in the fashion, food, and beauty sectors.

Consumer habits and purchasing influence

Portuguese consumers rely primarily on recommendations from friends and family when making online purchases. Social media advertising and influencers have less impact on their buying decisions. Among the most popular categories, clothing, footwear, and fashion items lead the way, with 66.7% of online shoppers reporting that they purchase these types of products.

Most popular payment methods in Portugal

The payment experience plays a key role in converting sales both online and in-store. 

In Portugal, several payment methods are preferred:

• Multibanco : This interbank network is a cornerstone of payments in Portugal, enabling transactions via bank cards and payment references.

• Bank cards: They account for approximately 83% of transactions thanks to early adoption of secure payment technologies.

• MB Way : This mobile app enables instant payments and fast money transfers, making online and in-store shopping easier.

• Digital wallets (PayPal, Apple Pay, Google Pay): Increasingly popular, they offer consumers added flexibility.

• Cash : Still in use, particularly for small transactions and in rural areas.

The role of Purse, a payment orchestrator for merchants

With the variety of payment methods available and constantly evolving consumer preferences, a payment orchestrator has become an essential tool for merchants. This solution allows for:

• customization of payment methods : based on the customer profile and sales channel (online or in-store).
• optimization of transaction costs : by selecting the most cost-effective provider for each payment method.
• improved conversion rates : by offering options tailored to the habits of Portuguese consumers.
• Simplified payment management : with a single integration covering all relevant payment methods.

‍Conclusion

The e-commerce market in Portugal is expanding rapidly, driven by increased online shopping adoption and shifting payment habits. Merchants must adapt to these changes by integrating flexible payment solutions that meet consumer expectations. Using a payment orchestrator allows them to optimize their offerings, improve the customer experience, and increase their competitiveness in this dynamic market.