Spain Digital Wallet Market Size, Share, Opportunities, And Trends By Device (PC/Laptops, Smartphones), And By Application (Money Transfer, Recharge, Movie Booking, Food Ordering, Others), And By Province - Forecasts From 2023 To 2028

The Spain digital wallet industry recorded total transactions of US$8.217 billion in 2021 and is expected to grow at a CAGR of 31.32% to US$55.342 billion by 2028.

The Spain region is estimated to have a large share during the projected period. The adoption of mobile payment applications, like Mercado Pay, PayPal, Rappi, and PicPay, among others, by shops and services worldwide is progressing quickly. This trend is anticipated to persist during the projection period due to rising internet usage and the rapid expansion of online retailing.

Further, due to the rise in internet penetration and e-shoppers in Spain in recent years, mobile payment has been gaining popularity. Compared to other payment methods, mobile payment is more practical, secure, and user-friendly. This is one of the primary drivers of market growth in Spain, along with the expanding trend of mobile-based payment solutions. Digital transactions have become prevalent as a result of the growing digitization. According to the European E-commerce Report 2023, internet consumption has surged in countries all around the world. For example, internet users in Spain reached 95% in 2022 whereas the e-shoppers in Spain reached 72% in the year 2022.

Evolution of the e-commerce industry

Payment systems have adapted swiftly to how consumers pay for products and services ever since the start of the COVID-19 outbreak. There was a dramatic change in how purchases were made physically, online, and through other means. The following figure represents the trend and forecast of e-commerce sales. Moreover, the global e-commerce industry is still expanding at an exponential rate. According to KSI’s estimates, this industry will surpass $14.5 trillion in 2028 and will witness a CAGR of more than 11% from 2020 to 2028.

Consequently, customers are increasingly demanding the most from both worlds and internet shopping is merging itself into a conventional store-based business. In 2021, the prevailing choices for payments in Spain remained centered around debit and credit cards. However, there was a noticeable surge in the popularity of electronic wallets, with PayPal emerging as the frontrunner, constituting a dominant 87 percent of such transactions. Projections indicate a substantial upward trajectory in the adoption of e-wallets in the foreseeable future.

Strategic Collaborations and product launches

Around the globe, an era of digital transactions can be witnessed because of rapid digitalization. Even in Spain, internet consumption is steadily increasing. As per World Bank data, in 2022, 94% of the population was using the internet in Spain. Digital wallets are highly recommended for their security feature, as there are multiple layers of security for digital wallet transactions. Each transaction is protected by the debit/credit card company, app, retail outlet, and the bank that has issued the card.

Growing preference for convenient payment options has resulted in many digital wallet product launches. For instance, in June 2020, a European Payment Initiative’s payment solution was promoted by the European Central Bank. In this initiative, EPI proposed an innovative and unified pan-European payment solution leveraging cards and credit transfer, while offering digital wallets to consumers and merchants across European countries such as Spain. EPI is targeting to become a new standard of payment for the countries’ merchants and consumers for all types of retail transactions such as online, cash withdrawal, peer-to-peer, and in-store. The company’s focus is on the wallet, instant payment, and value-added services.

Furthermore, in February 2019, Google Pay added support from a few banks in Spain among a few countries. Now, in total 15 banks are supported by Google Pay in Spain with the addition of Banco Pichincha, Boon, and Pibank. The motive of this initiative was to ease the use of payment platforms for in-store, in-app, and online transactions.

The smartphone device segment in Spain is anticipated to grow steadily. 

Spain is one of the leading European economies which is witnessing a significant boom in smartphone penetration. Additionally, the growing internet penetration, and investments in 5G technology coupled with a growing emphasis on digitization has further propelled smartphone subscription in the country. According to the World Bank’s data, in 2022, Spain’s mobile cellular subscription stood at 124 per 100 people which signified a 5.9% increase over 2020’s 117 per 100 people. Additionally, as per the same source, in 2022, individuals having internet access accounted for 94% of Spain’s overall population.

Rapid urbanization and improvement in living standards are further projected to bolster smartphone subscriptions in Spain in the coming years. As per GSM Association’s “Mobile Economy Europe 2022” smartphones will account for 82% of total connections in Spain by 2025, thereby representing a 3% increase over 2021. Moreover, the high convenience provided by mobile payment coupled with the well-established presence of major mobile payment platforms such as Bizum which forms part of the European Mobile Payment System Association are expected to positively impact smartphone sales in Spain. Likewise, major smartphone brands namely Samsung are also investing in digital wallets and implementing product launches which are anticipated to drive overall market growth. For instance, in June 2022, Samsung launched “Samsung Wallet” for its “Galaxy” users in 5 European countries including Spain. The wallet combines “Samsung Pay” and “Samsung Pass” thereby providing a refined interface to users where they can have one-swipe access to loyalty, payment, and membership cards.

Market Key Developments

• In July 2022, Google Pay announced the roll-out of its new multipurpose digital wallet in a few countries around the world, including Spain. The multipurpose wallet will enable the users to use, present, and store digital credentials such as health cards, identity cards, payment cards, tickets, and even transits and hotel keys. The update will be applicable across 39 countries in Europe and Asia.

Segmentation:

• By Device
  • PC/Laptops
  • Smartphones
• By Application
  • Money Transfer
  • Recharge
  • Movie Booking
  • Food ordering
  • Others
• By Province
  • Barcelona
    • By Device
    • By Application
  • Valencia
    • By Device
    • By Application
  • Malaga
    • By Device
    • By Application
  • Alicante
    • By Device
    • By Application
  • Others