European Country Profile Ebook
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European Country Profile eBook rapyd.net Table of Contents Introduction 3 Ecommerce Trends 4 Payment Trends 5 France - Economic Overview, eCommerce Trends, Payment Trends 6 Germany - Economic Overview, eCommerce Trends, Payment Trends 9 Italy - Economic Overview, eCommerce Trends, Payment Trends 12 Netherlands - Economic Overview, eCommerce Trends, Payment Trends 15 Poland - Economic Overview, eCommerce Trends, Payment Trends 18 Russia - Economic Overview, eCommerce Trends, Payment Trends 21 Spain - Economic Overview, eCommerce Trends, Payment Trends 24 Sweden - Economic Overview, eCommerce Trends, Payment Trends 27 United Kingdom - Economic Overview, eCommerce Trends, Payment Trends 30 European Country Profile eBook | 2 European Country Profile eBook Economic Overview “Europe” is the third largest region in the world by population, Growth has been slow across Europe in the aftermath of behind Asia and Africa, and is usually taken to include recent economic crises. Russia, the largest country in the world, although much [1] All statistics from Currently, 28 European countries are members of the of Russia is geographically in Asia. Worldometer: Link European Union (EU), though this is set to fall to 27 when [2] IMF World Economic In 2019, Europe’s population numbered 747,182,751, the United Kingdom leaves. Five countries (Albania, the Outlook, 2019: Link representing 9.7% of total global population, down from Republic of North Macedonia, Montenegro, Serbia and [3] European Commission: Link 22.7% in 1995. Europe is ageing overall at a gradual pace, Turkey) are currently in the process of joining the EU, though with median age rising to 41.7 from 29.5 in 1955, though the this process can take a very long time and success is not [4] EEA, European Free Trade Association: Link rate of increase is much higher in some countries. About guaranteed.3 Four countries (Iceland, Norway, Switzerland three-quarters of Europeans live in cities and towns.1 and Liechtenstein) have opted not to join the EU, but three [5] European Free Trade Association: Link of these are members of the European Economic Area (EEA) Europe is a rich region by global standards. In 2019, Europe’s which gives them membership of the EU’s single market,4 [6] Commonwealth of nominal GDP was $21.79 trillion, just behind East Asia ($22.05 Independent States: Link while the fourth (Switzerland) has a free trade agreement trillion) and North America ($24.43 trillion).2 Per capita GDP with the EU.5 was $29,410, only exceeded by North America ($49,240). However, there is wide variation in incomes between the The Commonwealth of Independent States (CIS) consists of countries of Europe: per capita GDP in the advanced nations former members of the Soviet Union, about half of which of Western Europe is $49,240, the same as in North America, are European countries. Russia is by far the largest and but in Eastern Europe it is much lower, at only $11,320. most dominant country in this association, and many of the other members are economically dependent on it.6 European Country Profile eBook | 3 Ecommerce Trends Western Europe is a large and prosperous eCommerce Eastern Europe is currently a much smaller market, reflecting [7] eMarketer: Link market. Retail eCommerce sales in the five biggest Western the less developed financial infrastructure and poorer [8] eCommerce News: Link European countries (Germany, France, Italy, Spain and the populations of these countries. However, it is growing at an [9] Statista: Link United Kingdom) are expected to pass $315 billion in 2019 average rate of 19%. In 2019, 3.6% of retail sales were made [10] Eastern Europe & CIS, 7 and reach $400 billion by 2022. These five countries make online, and the average consumer spend is $705. Russians PPRO: Link up about half of total European eCommerce.8 Currently, the particularly like to shop online: 62% of Russians shopped United Kingdom is the largest market, generating nearly online in 2019, against the 47% average for the region as $79 billion in eCommerce revenue in 2019. But eCommerce a whole. Popular shopping destinations are China, Russia growth in the United Kingdom is slowing down as the and Germany.10 As payments infrastructures and internet market matures, and other countries such as Germany penetration improve, and financial inclusion deepens, may surpass it in the next few years.9 Western Europe’s ecommerce in Eastern Europe may start to catch up with ecommerce market also faces growing uncertainty as the the more mature Western market, though U.S. and European United Kingdom prepares to leave the EU and global trade sanctions may make it difficult for Russia’s ecommerce tensions rise. market to develop. European Country Profile eBook | 4 European payments infrastructure Europe is notable for its diversity of payment methods. plus Switzerland, San Marino and Monaco. It enables people [11] Westen & Central Europe, Cards, bank transfers, digital wallets and cash are all popular, to make online payments in Euros to people and businesses PPRO: Link though cultural differences mean that preferred methods in other SEPA European countries as easily as they can within [12] Eastern Europe & CIS, of payment can vary widely across the region. In Western those countries.14 In November 2018, the EU introduced its PPRO, ibid. Europe, credit and debit cards are the most frequently used Target Instant Payment Settlement (TIPS) system, enabling [13] Eastern Europe & CIS, payment method for online purchases, followed by digital Euro payments to be settled in real time anywhere in the PPRO, ibid.- where in the text? 11 wallets and bank transfers. In Eastern Europe, credit cards Euro area. Non-euro countries also have real-time settlement [14] SEPA, European are the most popular method, followed by cash, digital for domestic payments: for example Faster Payments was Commission: Link 12 15 wallets and bank transfers. Smartphone apps that make introduced in the U.K. in 2008 and Bankgirot in Sweden in [15] Faster payments: Link 16 it easy for customers to make online purchases directly 2012. However, real-time cross-border payments involving [16] Bankgirot: Link from their bank accounts or credit cards are growing in more than one European currency are still a work in progress. popularity throughout the region. Contactless payments At the present time, the CIS countries do not have a using cards or smartphones are becoming ubiquitous in common currency and cross-border payments systems are Western European countries, but in some Eastern European undeveloped. Cash remains the dominant form of payment countries, cash is still widely used.13 for online purchases. However, ubiquity of mobile phones The European Union’s single payments area (SEPA) covers not in the region may mean that mobile payments platforms only the 28 EU members but also the three EEA members, will provide an alternative in the future. European Country Profile eBook | 5 France With nominal GDP of $2.78 trillion,1 France is the third largest countries, though it also has strong economic ties with its economy in Europe and the sixth largest economy in the former colonies in Africa and South America. Challenges world. It is a founder member of the European Union and include an unemployment rate of around 9%;2 public debt/ [1] World Bank: Link uses the Euro as its currency. France has a mixed economy GDP in excess of 90%;3 and an external deficit of about [2] World Bank: Link and its principal industries are energy, manufacturing, 0.7% of GDP.[4] technology and transport. It trades mainly with other EU [3] Eurostat: Link [4] World Bank: Link Key Statistics At A Glance [5] World Bank: Link [6] World Bank: Link [7] International Population: 82.4% 94% Telecommunications Union: Link of France’s population of the population have [8] Spotlight, World Bank: Link 66.987 7 million (2018)5 use the internet (2019) bank accounts (men 91%, women 97%) 9 [9] World Bank: Link GDP per capita 87% 41% [10] World Bank: Link of adults have a mobile of the population use $ 41,463 8 10 (2018)6 phone credit cards European Country Profile eBook | 6 France Ecommerce Trends 44.9 million $42,674m (69% of population) $949.80 (2019) [11] Statista: Link Ecommerce Ecommerce Average Ecommerce [12] Statista, ibid. revenue11 users12 revenue per user13 [13] Statista, ibid. [14] Statista, ibid. [15] Global Connected Commerce Report 2016, Nielsen: Link (2018-23) 3% 59% 18.11% (2015-16) 8% [15] World Bank: Link Cross-border Percentage of Projected ecommerce online purchases population making Ecommerce growth revenue compound [16] Statista, ibid. 16 (percentage of online purchases15 rate annual growth rate total)14 (CAGR)17 [17] Statista, ibid. [18] Missing Fashion Major ecommerce 33% Toys, hobby & DIY categories (percentage 20% Electronics & media 19% of total revenue):18 Furniture & appliances 17% Food & personal care 11% European Country Profile eBook | 7 France Popular Payment Methods Sources: Consumer Credit card 61% Technographics Global Online Cash 54% Benchmark Survey (Part 1), PayPal 45% 2019 Debit or ATM card 43% Check/cheque 36% © 2019 Forrester Research, Inc. Direct debit from checking/chequing account 18% All of Forrester’s Technographics Merchant gift card 16% data is confidential and for Bank transfer 9% internal use only. Any external MasterPass by MasterCard 7% distribution is strictly prohibited. Cash on delivery (COD) 6% Pre-paid debit card 5% Visa Checkout 5% Amazon Pay 4% Apple Pay 3% Google Pay 3% None of these 2% Paylib 2% Bitcoin 1% PaySafeCard 1% European Country Profile eBook | 8 Germany Germany’s nominal GDP of nearly $4 trillion makes it the in engineering, electronics and transport. Unemployment largest economy in Europe and the fourth largest in the is very low, but persistently low wage growth and a strong world. It is a member of the G7 group of advanced countries.