Credit Transfers are Taking Over Europe
In a world that relies a lot on the Internet, it’s almost impossible to imagine our everyday activities without the aid of the World Wide Web. Whether it’s searching for information, looking for a job, or just shopping, the Internet is an inseparable part of it all. The online shopping experience is specific due to the ever-changing preferences of customers. Free shipping has become a must, information must be easy to find and explore, and payment options must match customers’ preferences. An increasing number of customers prefer credit transfers over traditional credit cards.
Why is that? Let’s start by explaining what credit transfers are and what makes them appealing to customers online.
What are credit transfers?
A credit transfer is an instruction from a customer (Originator) to his/her bank to transfer an amount of money to another account (Beneficiary). They are a convenient and secure way to pay online. Customers need to initiate the transaction, which means that this is a push-based transfer.
Why customers prefer them?
Credit transfers are especially popular among European customers. There are several benefits of this payment method for consumers, some of them being:
- Both one-off and recurring payments are supported
- The format of the transaction is standardized
- Only an IBAN and BIC are required in order to make the transfer
- The funds are received the same day
- The costs of the cross-border transactions are the same as they are being performed within the same country
Credit transfers are a safe, convenient, and cost-effective payment method. By utilizing their benefits, consumers save time, money, and enjoy a frictionless payment experience.
What do the stats say?
In 2017, credit transfers in Europe increased to 24% of all transactions. Additionally, their number reached 32.1 billion in the same year. The numbers are fascinating, showing a significant customer preference towards this payment method.
In Europe, the situation is even more interesting. European scheme SEPA Credit Transfer becomes a standard for these transactions in 52 countries and territories of the SEPA zone. As more and more financial institutions employ this payment scheme, SEPA Credit Transfer becomes a common way to pay online.
According to Statista, the per capita amount of credit transfers made in the EU is constantly growing since 2014. In 2017, almost 63 credit transfers per capita were made in the EU, which shows significant growth compared to the previous years.
Consumer preferences regarding payment methods are constantly changing. Payments predictions claim that by 2023, local payment methods will account for 89% of total e-commerce. Merchants must make a lot of effort to keep up with the changes in order to stay competitive and attract customers.
You can rely on Alternative Payments to be your trusted partner for credit transfers in Europe. Whether you want to enable your clients to pay with their preferred payment method, or you want to payout your employees, associates, partners… We got you.