Current trends in electronic payments
Contactless payments
Today, most shops in Austria accept contactless payments by debit or credit card, smartphone or smartwatch. Contactless payments rely on near field communication (NFC) technology and are also possible without PIN verification. All you need to do is hold your card or mobile device close to a payment terminal. Payment terminals and cards that are equipped to handle contactless payments usually feature a small transmission symbol (contactless symbol or contactless indicator).
Background information: NFC allows for wireless data transmission between electronic devices over a short distance (up to roughly 4 cm).
Strong rise in contactless payments since 2020
Contactless payments are already fairly widespread – not only in the USA and Asia, but also in Europe. The share of contactless payments in overall debit card payments at the point of sale in Austria already came to around 95% at end-2024.
Contactless card payments
To make a contactless card payment, you just need to gently tap the payment terminal with your card – no need to insert it. For payments up to EUR 50, you do not even have to enter your PIN unless you have spent more than EUR 125 in several successive contactless payments since your last PIN verification. Single payments in excess of EUR 50 can also be made without inserting the card but you need to enter your PIN. No matter whether your payment is contactless or not, the card payment process that occurs in the background is always the same.
Contactless mobile payments
Some banks offer their customers the option of digitizing their payment card on a smartphone or smartwatch so that these devices can be used to make contactless payments at the point of sale. To do this, the card is stored in a virtual wallet, e.g. Google Pay or Apple Pay. Several cards can also be stored in this wallet.
However, there are also mobile payment solutions that do not rely on a payment card. These solutions use QR codes as an alternative to the NFC function, which are scanned either by the retailer or the consumer during payment. Corresponding payment solutions (e.g. Bluecode) have also been available in Austria for several years.
Payments in e-commerce
Online trade has been steadily growing over the past years. This trend has gained further momentum as traditional shopping options were restricted during COVID-19 lockdowns. According to the Austrian Retail Association, the money spent in Austria for online purchases reached EUR 10.6 billion in 2024 – a new record high that represents a 5% increase compared to the previous year.
The boom in e-commerce can also be explained by the growing acceptance of digital payments by retailers and customers. Next to traditional credit transfers and traditional credit card payments, there is a growing number of diverse, user-friendly wallets and online payment methods to choose from.
Most often, people use card payments (38%), wallets and online payment methods (29%) and credit transfer (10%) to settle online transactions. Direct debit (8%) and instant payments (5%) play a subordinate role.
What are instant payments?
Under the SEPA Instant Credit Transfer scheme, European banks have been able to offer their customers instant payments since November 2017 and they must offer it from October 2025. Unlike ordinary credit transfers, which require at least one bank business day, instant payments make it possible to transfer funds to a recipient’s account within seconds.