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

The e-commerce market in Portugal is experiencing rapid growth, driven by changing consumer habits and the increasing adoption of digital payments. This transformation presents a major opportunity for merchants looking to enhance their online presence and offer payment solutions tailored to Portuguese consumers' expectations.

Sustained growth in e-commerce

In 2021, approximately 40% of Portuguese consumers made online purchases, marking an increase of 7 percentage points compared to the previous year—the highest annual growth ever recorded in this sector. This trend continued in 2022, with Portuguese consumers spending €10 billion online, representing a 36.2% increase compared to 2020.

According to forecasts, Portugal's e-commerce market is expected to reach €7.13 billion in 2023 and €9.3 billion by 2025.

These figures highlight the increasing adoption of e-commerce in Portugal, with a strong preference for online purchases in fashion, food services, and beauty products.

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Consumer habits and purchasing influences

Portuguese consumers primarily rely on recommendations from friends and family when making online purchases. In contrast, social media ads and influencers have less impact on their buying decisions.

Among the most popular shopping categories, clothing, shoes, and fashion accessories lead the market, with 66.7% of online shoppers stating that they purchase these types of products.

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The most used payment methods in Portugal

he payment experience plays a key role in converting both online and in-store sales. In Portugal, several payment methods are widely preferred:

• Multibanco: This interbank network is a cornerstone of Portugal’s payment system, allowing transactions via bank cards and payment references.
• Bank cards: Representing about 83% of transactions, thanks to the country's early adoption of secure payment technologies.
• MB Way: A mobile application that enables instant payments and fast money transfers, facilitating purchases both online and in physical stores.
• Digital wallets (PayPal, Apple Pay, Google Pay): Increasingly popular, offering consumers additional flexibilityin payment options.
• Cash: Still commonly used, particularly for small transactions and in rural areas.

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The role of Purse, a payment orchestrator for merchants

With the diversity of payment methods available and constantly evolving consumer preferences, a payment orchestrator is an essential tool for merchants. This solution enables:

• Personalized payment methods: Tailored to the customer profile and sales channel (online or physical).
• ‍Optimized transaction costs: Selecting the most cost-effective payment provider based on the chosen method.
• ‍Improved conversion rates: Offering payment options adapted to Portuguese consumer habits.
• ‍Simplified payment management: With a single integration covering all relevant payment methods.

‍Conclusion

The e-commerce market in Portugal is expanding rapidly, driven by the growing adoption of online shopping and evolving payment behaviors. Merchants must adapt to these changes by integrating flexible and localized payment solutions that align with consumer expectations.

By using a payment orchestrator, businesses can optimize their payment offerings, enhance customer experience, and increase their competitiveness in this dynamic and growing market.