Back to BlogThe Future of Payments in Spain & Portugal: Trends to Watch in 2025
The payments landscape in Spain and Portugal is evolving rapidly, fueled by a rising demand for alternative payment methods, digital wallets, and much more. To stay competitive, merchants must provide seamless, secure, and locally adapted payment options.
Here’s what’s driving payment trends in 2025 and how Shift4 is empowering businesses in Spain and Portugal to thrive.
How Spain & Portugal Are Embracing Online Payments
Spain: A Mobile-First Market
Spain’s ecommerce market hit €21.8 billion in early 2024, up 13.7% year over year, and is expected to reach €39.81 billion by 2025. Mobile commerce is driving this growth, with over 40% of online purchases happening on smartphones. At the same time, Buy Now, Pay Later (BNPL) has become a major trend, with 63% of Spanish consumers using deferred payments. Notably, 69% of BNPL users are willing to switch providers if it means access to payment options with installments.
What this means for merchants:
- Offer seamless, mobile-optimized checkouts to prevent cart abandonment.
- Support one-click payments and digital wallets (Apple Pay, Google Pay, PayPal).
- Integrate local payment methods, such as Bizum, for smoother transactions.
- Provide BNPL options to increase conversion rates and customer loyalty.
Portugal: The Rise of Alternative Payments
Portugal’s ecommerce market is growing at nearly 9% per year, projected to reach €5.38 billion by 2025. Unlike Spain, where cards dominate, only 26% of online transactions in Portugal are card-based.
What this means for merchants:
- Support bank transfers, BNPL, and digital wallets to match customer preferences.
- Enable popular local payment methods, such as Multibanco and MB Way, to boost conversions.
Top Payment Trends to Watch
1. BNPL Expands as Consumers Seek Flexibility
Buy Now, Pay Later (BNPL) is taking off in Iberia. Consumers love the flexibility, and businesses see higher conversion rates. A study by Kantar reveals that 47% of European consumers have used BNPL, highlighting its continued growth.
2. AI-Powered Fraud Prevention Gains Momentum
Artificial Intelligence is revolutionizing the payments industry, making transactions smoother, safer, and more efficient. It’s a powerful tool that enhances both business operations and customer experiences.
Why it matters for merchants:
- AI models detect anomalies and stop fraud before it happens.
- Tailor checkout options provide a more personalized payment experience.
- AI helps with your back-office efficiency by optimizing approvals and automating tasks where relevant.
3. Crypto Goes Mainstream
Spain and Portugal are embracing crypto payments. Businesses in tourism, retail, and real estate are already accepting Bitcoin and other digital currencies. Regulatory frameworks are evolving, making crypto more accessible. According to PwC Spain, digital currencies and cryptocurrencies are expected to be the biggest financial disruptors in the next 20 years.
Why merchants should care:
- Faster, cheaper cross-border payments with reduced fees.
- More payment flexibility for customers.
- Competitive advantage in high-growth industries like travel and ecommerce.
Navigating Iberia’s Payment Landscape with Shift4
Success in payments starts with smarter, more efficient solutions. Shift4 helps businesses streamline transactions, reduce fraud, and boost conversions.
Faster, Frictionless Onboarding
Our automated onboarding process gets merchants up and running in no time—no headaches, no delays.
Higher Approvals = More Sales
We optimize transactions by working with issuers to reduce declines. If an authorization fails, our smart rerouting finds a backup—so you don’t lose the sale.
AI-Driven Security & Personalization
Our AI detects fraud in real time, stopping threats before they happen. Plus, we personalize payment options based on customer behavior, driving better engagement.
The Payment Methods Iberia Prefers
Shift4 ensures customers can pay the way they want:
- Apple Pay, Google Pay & mobile wallets
- Local and alternative payment methods, including bank transfers & instant payments
- Crypto payments for future-ready businesses
- Contactless & real-time settlements
Stay Ahead in 2025
Shift4 delivers what Iberian businesses need to stay ahead. Our AI-driven security and local payment integrations help merchants reduce fraud, increase approvals, and offer seamless checkout experiences.
Unlike traditional providers, we optimize transactions in real-time—maximizing sales and minimizing friction. Don’t let outdated payment processes hold you back. Shift4 empowers Spanish and Portuguese businesses with faster, fraud-free, and future-proof payments. For more information, check: https://www.shift4.com/iberia.