Western and central Europeans now make almost a quarter of their online purchases from merchants based outside the country in which they live. This figure should give any merchant looking for new opportunities pause, as the e-commerce market in this region is worth the equivalent of USD 768. billion.
An overview of the market
Merchants looking for the first market to target in their cross-border expansion should consider Poland, as Poles love shopping online. They spend nearly €30 billion a year with online merchants, and by 2025 that figure is expected to increase by 59%, to a total of €47 billion.
A fifth of Poles shop cross-border, indicating their willingness to try new merchants and shopping experiences as long as they are offered the right price, promotions and customer experience.
With almost 90% internet penetration and just under 80% of the population owning a smartphone, Poland is well connected, both through physical and digital infrastructure. Capacity in the last-mile logistics sector is expected to increase by 43% to more than one billion parcels by 2023, with Poles already spending around $1 billion a year on cross-border traders.
Preparing your payment strategy for Poland
Given the lucrative prospects presented by the Polish markets, it may be tempting to imagine, especially since Poland is part of the EU single market, that any trader familiar with other markets in Western and Central Europe can just open a store here without much preparation. But like all markets, Poland has its local preferences.
First, Poles prefer to pay for their purchases online. Only 17% of Poles own a credit card, and cards are only used for 23% of all online purchases. By far the most popular payment method is bank transfer, with a 53% market share for online payments. Polish online shoppers used e-wallets in 16% of transactions, cash in 5% of cases and a range of other payment methods in the remaining 3%.
Any strategy aimed at appealing to Polish online shoppers must take this reality into account. If merchants only rely on customers using credit cards to make payment, they will reach at most 23% of the potential market. However, by supporting the full range of locally preferred payment options, new merchants can enter the Polish market and hope to gain consumer trust, as well as achieve the maximum possible conversion rate.
The most popular payment methods in Poland
The method of payment by BLIK bank transfer is of particular importance. Founded in 2015, it is compatible with the online portals of most major Polish banks. It has eight million active users, about one-fifth of the country’s population. In addition, Poles use it in more than 400 million transactions every year and this payment method has a 60% market share of all Polish e-commerce.
The second most popular e-commerce payment method in Poland, P24, is another real-time bank transfer app. 72% of online shoppers in the country use it to pay for at least part of their transactions.
Paysafe comes third, although some might consider it a more specialized payment method. It allows users to shop online without using any type of digital payment method. Customers simply choose “Paysafe” at checkout, register the 16-digit code generated by the Paysafe server, take that code to a participating outlet, pay in cash, and wait for their goods to arrive. Poles pay 5% of all online purchases using cash payment systems like this.
To learn more about the Polish e-commerce market, why you should want to be active there, and what you can do to ensure you succeed, check out the PPRO Western & Central Europe Ecommerce and Payments report. It consists of detailed information on the Polish market and similarly for all other major markets in the region, as well as exclusive PPRO data on payment preferences in Poland and across the region.
About Jamie Lee
Originally from New Zealand and currently based in London, Jamie previously worked for Bank of America, BBC, Capita and CBRE. In his current role at PPRO, Jamie is the brilliant account manager for the company’s largest payment service provider clients in EMEA, providing strategic advice and helping them grow their business even faster.
PPRO is a fintech that globalizes payment platforms for businesses, enabling them to offer more choice at checkout and boost cross-border sales. Payment service providers, businesses and banks using PPRO’s infrastructure are able to launch payment methods faster, optimize payment conversions and reduce the complexity of managing multiple payment streams. funds. Citi, PayPal and Stripe are just a few of the names that depend on PPRO to expand their platforms across borders. In 2020 alone, the company processed 8.84 billion euros for its partners. And with a growing global team of over 400 people, it’s no wonder they’re considered the go-to local payments experts.