The 2025 payments landscape in Spain and Portugal
The 2025 payments landscape in Spain and Portugal
The payment landscape across Spain and Portugal is set to undergo a transformation in 2025, driven by technological innovations and a relentless focus on customer experience. These changes will redefine how consumers and businesses interact with payment technology.
The year of ‘invisible’ payments
In 2025, the payment industry needs to accelerate to meet consumers’ ever-growing demands for faster, simpler and more intuitive payment experiences. Today’s consumers expect the payment process to be so seamless it’s virtually invisible – an effortless part of their daily transactions.
One payment method leading the charge when it comes to speed and simplicity is real time payments. With instant credit transfers, the money is available in the payee’s account in just a few seconds, 24/7, 365 days a year.
Spain has emerged as a European leader in real-time payments adoption, with this method accounting for 53% of all transactions – significantly higher than the European average of 15%. Its popularity is in part thanks to the collaborative initiative by the Spanish financial sector to create Bizum, a mobile payment service that allows users to send and receive money, designed to meet digital-first consumers’ demands. And there are no signs of slowing down, with real-time payments projected to achieve a 16.8% compound annual growth rate (CAGR) by 2030.
Similarly, Portugal has experienced growth in the adoption of real-time payments over the past couple of years. MB Way, a mobile payment system that allows users to make purchases, transfer money and withdraw cash using their phone, grew from 520,000 users in 2017 to over five million users in September 2023. It’s quickly becoming the Portuguese’s favourite mobile payment method.
The adoption rates of real-time payments in Spain and Portugal illustrate that the message is clear; consumers want real-time payments. Ultimately, success will depend on merchants’ having the right technology to meet the needs of consumers without compromising on customer experience.
Bridging the digital-physical divide
Another area with high consumer expectations in 2025 is the seamless bridge between physical and digital shopping experiences. Shoppers now expect to be able to move effortlessly between online browsing and in-store visits, with their preferences, payment methods, and loyalty rewards automatically syncing across all channels. The traditional divide between eCommerce and physical retail has dissolved, replaced by a fluid commerce ecosystem where starting a purchase on a mobile device and completing it in-store, or vice versa, feels natural.
In Spain, this transformation is evident through the growing prevalence of Research Online, Purchase Offline (ROPO). Nearly 75% of Spanish consumers prefer to research products digitally before making the trip to buy in-store and 76% combine purchases both online and in-store.
Meanwhile, in Portugal, while consumers are also embracing a hybrid approach to shopping, their preference remains with brick-and-mortar stores. 97% of consumers shopped in-store in 2024, compared to 22% who shopped online. However, eCommerce has been growing rapidly in the region, with experts predicting the market size to reach $9.98 billion by 2029, almost double what was predicted for 2024. Portuguese consumers also enjoy shopping on their phones, with mobile commerce accounting for 36% of e-commerce.
Ultimately, merchants need to invest in good omnichannel experiences so consumers can seamlessly move from shopping online to in-store and vice versa.
Nearly 75% of Spanish consumers prefer to research products digitally before making the trip to buy in-store and 76% combine purchases both online and in-store.
AI-watchdog – the future of security
As merchants strive to enhance customer experiences across multiple channels, they must simultaneously strengthen their digital infrastructure with advanced security measures. Artificial Intelligence (AI) takes centre stage in security and fraud prevention across the world. With security the foundation of consumer trust, investment in AI-powered fraud prevention tools needs to be top of mind for merchants.
Spain is emerging as a notable pioneer in AI-driven fraud prevention. The country launched Europe's first AI regulatory agency which signals a commitment to developing an inclusive and citizen-centred framework for AI implementation. Their position as a pioneer is exemplified by Iberpay, who manage the Spanish payment system by connecting banks, companies and citizens to process and settle their payments, integrating AI and machine learning into their Payguard anti-fraud service. Payguard was developed by Iberpay and is a collection of five tools that work together to help identify, prevent and anticipate fraud. This enhances financial crime detection and improves the efficiency of instant transfers through real-time transaction, monitoring and sophisticated cross-checking against known fraud indicators.
Although Portugal isn’t quite matching Spain’s pace when it comes to AI adoption, the country is making significant strides in its AI capabilities. As a member of the EU, Portugal has implemented regulatory compliance and ICT risk management frameworks under the Digital Operational Resilience Act (DORA). This aligns with the EU-wide effort to enhance digital resilience in the financial sector and protect against cyber threats. The ‘AI Portugal 2030’ strategy supports AI research, workforce retraining and economic growth through AI technologies, signalling a desire to push forward the country’s adoption of this technology.
Europe as whole is moving towards more advanced, AI-driven solutions to combat financial crime and improve regulatory compliance. For merchants in Spain and Portugal it’s important to stay ahead of the curve and invest in AI-powered security, customer support and fraud prevention. Security remains the fundamental cornerstone for trust so AI will help merchants increase customer loyalty.
Looking ahead
In 2025 merchants will be defined by their commitment to offering instant payments, creating good omnichannel experiences and investing in AI-powered security methods. Merchants in Spain and Portugal that successfully bridge the digital-physical divide while maintaining robust security will thrive in this new landscape, where speed and simplicity coexist with safety and trust. The Iberian Peninsula’s payments landscape is set to experience great change, and merchants who are ready to capitalise on this will experience strong growth this year.
