The European merchant acquiring landscape is as competitive and diverse as ever, with major players like Worldpay, Adyen, and Nexi dominating a market that processes trillions of dollars in annual transactions.
According to TSG’s 2024 European Directory of Merchant Acquirers, these three companies rank at the top of a fragmented, complex, and highly competitive market that spans over 180 acquirers across Europe.
Key Insights from the European Market
Europe’s acquiring space is distinctly more complex than its US counterpart, with over 40 players processing more than $20 billion annually.
Together, these acquirers serve millions of merchants, all while navigating a challenging landscape of multiple currencies, regulatory frameworks, and payment methods.
In 2023 alone, the top five acquirers in Europe processed a staggering $2.3 trillion in card volume, accounting for nearly 40% of the total volume captured in the report.
Worldpay, the largest European processor, handled $525 billion in sales volume and processed 12.5 billion transactions, solidifying its leadership position.
Hot on its heels is Adyen, a global giant with $523 billion in processing volume.
Nexi Payments, while third in terms of total volume, leads in merchant count, supporting 2.9 million merchants across Europe.
These three companies exemplify the scale and reach of Europe’s top acquirers in a region defined by its complexity.
A Fragmented Landscape with Regional Nuances
One of the standout features of Europe’s acquiring market is its fragmentation. With different currencies, legal systems, and consumer preferences, merchant acquirers must tailor their solutions to suit regional needs.
For example, cash and debit card usage remains high in Europe, with cash accounting for 33% of physical POS transactions and debit cards making up 46%.
In contrast, credit cards dominate the US market, representing 95% of all POS transactions.
Europe’s fragmented nature is further highlighted by the role of financial institutions in the acquiring process.
Many merchants prefer working with acquirers located within their own countries, prioritising shared languages, regulatory understanding, and proximity.
As a result, international acquirers frequently form joint ventures or partnerships with local financial institutions to expand their reach – one prominent example being the partnership between Fiserv and AIB in Ireland.
The Growing Role of e-commerce and White-Label Solutions
Europe’s payment preferences also differ significantly when it comes to e-commerce.
Account-to-account (A2A) payments are more common in Europe, where they account for 260% more e-commerce payments than in the US.
Conversely, digital wallets dominate the US e-commerce space, with a 23% higher usage rate compared to Europe. This regional divergence underscores the need for acquirers to adapt their solutions to meet the varying demands of merchants across the continent.
White-label payment gateway solutions are another important feature of the European acquiring landscape.
Nearly 58% of European acquirers market their own payment gateways, often white-labelled from external providers.
This is in contrast to the US, where only 38% of acquirers market in-house or white-labelled gateways.
European acquirers have recognised the strategic advantage of branding these solutions as their own, allowing them to compete more effectively in an increasingly crowded marketplace.
The Battle for Market Share
Though well-established global players like Worldpay and Adyen maintain a strong presence in Europe, regional giants like Nexi Payments and Worldline also hold substantial market share.
Nexi’s dominance in Italy, for instance, demonstrates the power of localised acquirers to compete against global heavyweights.
Meanwhile, European-based challengers such as Stripe and Adyen continue to expand globally, further blurring the lines between regional and international acquiring markets.
Looking forward, the competition within Europe’s merchant acquiring space is set to intensify.
As digital transformation accelerates and new payment technologies emerge, the acquirers that can best adapt to the region’s fragmented nature and evolving consumer preferences will continue to thrive.
Europe’s merchant acquiring market is defined by its complexity, with both global and regional players vying for dominance.
As acquirers continue to navigate the challenges posed by multiple currencies, regulatory environments, and payment preferences, companies like Worldpay, Adyen, and Nexi are well-positioned to lead the charge.
For merchants, selecting the right acquirer in such a competitive landscape will increasingly depend on flexibility, innovation, and an understanding of the unique dynamics shaping Europe’s payments ecosystem.
For a detailed analysis on a country by country basis of European Payments CLICK HERE
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