Payment methods in Portugal in 2025: trends and consumer habits

The evolution of payment methods is a direct consequence of the digital transformation reshaping global commerce and user preferences. Adapting to each country’s local needs has become essential to deliver an effective experience.

In this article, we explain the payment trends in Portugal, as well as the systems that operate exclusively in the Portuguese market, and how you can adapt your payment strategy to boost your business in Portugal.

The evolution of payment methods in Portugal

The payment culture in Portugal has evolved steadily in recent years, driven by digitalisation, changes in consumption habits, and the adoption of new technologies. Today, traditional methods such as cash are still present but share the stage with increasingly widespread digital solutions.

The growth of e-commerce has been one of the main drivers of this transformation. According to Statista, the sector is expected to reach revenues of around €5.1 billion in 2025, with an annual growth rate of 5% until 2030 and a market penetration exceeding 53% of the population — reflecting a rapidly expanding digital market and a clear evolution in the country’s payment habits.

MB WAY, the preferred payment method among the Portuguese

Consumers in Portugal largely rely on their local payment method to make most of their transactions. MB Way emerged more than a decade ago as a mobile extension of Multibanco, allowing users to make instant payments without the need for a physical card. A combination of convenience, user trust, and local technology has made MB Way the preferred payment method for over 6 million users.

Card payments, a key pillar

Card usage remains one of the main pillars for accepting payments in both physical stores and e-commerce. Moreover, the trend toward contactless transactions continues to rise. According to the Bank of Portugal’s Payment Systems Report, by the end of last year, 91% of issued cards and 93% of POS terminals were enabled for contactless transactions.

“Buy now, pay later” starts to take off in Portugal

Driven by the arrival of European payment solutions and new fintech proposals, the “Buy Now, Pay Later” model is beginning to gain more visibility in the Portuguese market. Although it currently represents only a small portion of the market, forecasts suggest strong growth in the coming years. This increase will be especially noticeable among young adults with lower purchasing power, who use it to finance smaller purchases in sectors such as fashion or technology.

Growing adoption of international wallets

The adoption of international digital wallets, such as Apple Pay and Google Pay, has grown steadily in Portugal in recent years. More and more consumers are using their mobile phones to pay in stores, driven by convenience and the ability to make cross-border payments. This makes them an attractive option for Portuguese users shopping on global platforms. Their adoption reflects a growing openness to external technological solutions and a shift in online consumption habits.

SEPA transfers

Although they are not the preferred payment method among Portuguese consumers, SEPA transfers are a fundamental payment tool for businesses and cross-border payments within the Eurozone.

What are the most popular payment methods in Portugal?

Although cards still dominate globally, Portugal’s payment landscape is more diversified, leaving room for other innovative payment solutions.

• MB WAY

MB Way has become the most popular payment method in Portugal. In just a decade, it has evolved from a digital alternative to the market leader, accounting for nearly 45% of the country’s online transactions, according to SIBS.

With over 400 million operations last year, its success lies in its convenience, speed, and ability to make payments, transfers, and online purchases directly from a mobile phone, without needing a physical card.

• Multibanco

Another key player in Portugal’s payment ecosystem is Multibanco. Its familiarity among users and four decades of market presence make it one of the most trusted systems.

According to SIBS, the entity managing Multibanco, in June 2025 more than 190 million electronic transactions were recorded, compared to 170 million in June of the previous year.

• Digital wallets

The use of digital wallets has grown alongside the rise of contactless transactions and the e-commerce boom of recent years. International wallets like Apple Pay and Google Pay are becoming increasingly popular, especially among users aged 18 to 35, where adoption already exceeds 55%.

• Credit and debit cards

Unlike in Spain, cards are not the dominant digital payment method in Portugal. However, they remain the preferred option in physical stores, where contactless card payments account for 90% of all transactions.

In 2024 alone, according to SIBS, more than 2.8 billion card transactions were recorded.

• Cash

Despite the rapid growth of digital payment methods in recent years, cash continues to play a significant role in the daily lives of the Portuguese. It is most commonly used by people over 55 and in rural areas where banking digitalisation progresses more slowly.

According to the 2024 Annual Report from the Bank of Portugal, 54% of all transactions were made in cash that year. Although its use is declining, it remains the dominant method for small purchases and local businesses.

Local payment methods in Portugal

Portuguese payment solutions

One of the defining features of the Portuguese market is the strength of its local payment solutions. In addition to well-known international methods, Portugal has developed its own systems, specifically designed to operate within the country and meet the preferences of Portuguese consumers.

MB Way

What is MB Way?

MB Way is a mobile payment application developed by SIBS (Sociedade Interbancária de Serviços). It was launched in 2015 and is now one of the most popular payment methods in Portugal, allowing users to make payments, transfers, online purchases, and cash withdrawals using only their mobile phone.

How does MB Way work?

1. The user links their bank card to the MB Way app.
2. When making an online purchase, they select MB Way as the payment method.
3. A notification is received on their mobile to authorise the transaction.
4. The payment is confirmed via biometric authentication (fingerprint or facial recognition) or mobile PIN.
   

What is MB Way used for?

• In-store payments: by scanning a QR code or simply tapping the mobile device on the payment terminal, users can pay without a physical card.
• Online payments: allows users to pay on e-commerce platforms without entering banking details, simply validating the transaction through the app.
• Instant peer-to-peer transfers (P2P): users can send or receive money in seconds using only the recipient’s phone number.
• Cardless cash withdrawals: users can generate a code in the app to withdraw cash from ATMs without inserting a card.
• Bill and service payments: bills, taxes, or mobile top-ups can be paid directly from the app.
• Split bills or request money: enables users to transfer funds to each other without an IBAN, using only their mobile phones.
  

Multibanco

What is Multibanco?

Multibanco is a Portuguese interbank network, also managed by SIBS, that enables secure electronic payments through ATMs, online banking, or mobile banking. It is an exclusive Portuguese system that has earned citizens’ trust since 1985.

How does Multibanco work?

1. During checkout, the customer selects Multibanco as the payment method.
2. A reference is generated identifying the entity and the amount.
3. The customer completes the payment through online banking or at any ATM.
4. The merchant receives real-time payment confirmation.

What is Multibanco used for?

• E-commerce payments: the customer generates a reference during checkout and completes the transaction via online banking or ATM.
• Bill and utility payments: users can pay taxes and utility bills (water, electricity, gas).
• Mobile and transport top-ups: allows reloading of mobile phones or transport cards.
• Donations: enables donations to charities.
• Transfers and banking operations: users can make national and international transfers, check balances, print statements, or request extracts.
• Ticket purchases: allows buying event tickets, transport passes, or even lottery entries.

Benefits of integrating local payment methods into your business

If you are planning to expand your business to the Portuguese market, integrating Portugal’s local payment methods into your checkout process is an essential step.

Builds greater consumer trust

Users tend to trust what they already know. In Portugal, consumers are familiar with MB WAY and Multibanco. According to SIBS, MB Way surpassed 6 million users in 2024, representing approximately 75% of the banked population in Portugal. Meanwhile, Multibanco accounts for around 25% of all online transactions in the country.

Ensures regulatory compliance and maximum security

Local payment methods in Portugal, such as MB WAY and Multibanco, comply with national and European regulations (PSD2 and PCI DSS), offering higher protection against fraud and unauthorised payments. They increase consumer confidence, reduce legal risks for businesses, and facilitate EU-wide integration while enhancing user experience.

By not requiring sensitive data to be exchanged directly with the merchant and using strong authentication methods, these local systems help reduce fraud risk.

Improves your e-commerce conversion rate

Integrating the payment methods that Portuguese people use most frequently into your online payment platform simplifies the purchasing process and builds confidence at the crucial payment stage. This local adaptation improves user experience, reduces cart abandonment, and boosts your e-commerce conversion rate.

Access to a more diverse audience

In a country where cards are not the most popular digital payment method, offering customers the options they already know and prefer allows you to reach a larger share of the market.

Local payments in Portugal: the best solutions for businesses and merchants

Optimize your in-person and online payments with PaynoPain’s virtual POS

Portuguese consumers, beyond adopting the dominant European payment methods such as cards or wallets, tend to prioritise local solutions. If you are planning to sell in Portugal, failing to integrate the traditional Portuguese payment methods could be a serious mistake.

Contact our team if you need more information about how to integrate Multibanco and MB WAY into your e-commerce with PaynoPain, so you can offer your customers local and secure payment options.