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Travel payment trends in Europe – Digital wallets and BNPL adoption stats

August 6 2025

Europe & UK Consumers Now Prefer Digital Wallets, BNPL for Travel Bookings, New Report Finds

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While credit cards still dominate, especially in the U.S., travelers in Europe and the UK are increasingly choosing digital wallets and flexible options like “buy now, pay later”, and this preference is carrying over from general e-commerce into travel transactions. McKinsey reports that global wallets such as PayPal and Amazon now account for 55% of all online transactions in Europe, and CarTrawler’s Q2 2025 Market Monitor shows this same behavior is becoming more visible in travel, particularly car rentals and other travel products..

PayPal and Apple Pay now make up around 6% and 5% of European bookings, while Klarna’s BNPL share is climbing steadily: 1.8% of transactions in April, 2% in May, and 2.2% in June, up from 1.5% at the end of 2024. In the UK specifically, Apple Pay is now the leading digital payment method for car rentals, accounting for more than 10% of bookings in June, compared to PayPal’s nearly 6%.

In contrast, the U.S. travel sector remains heavily card-based, largely due to rental suppliers incentivizing credit card use and the prevalence of “post-paid” bookings at the rental counter.

These trends underline a clear takeaway: as travelers become used to paying for everyday purchases with digital wallets and BNPL, they expect the same flexible, convenient and frictionless payment choices when booking travel, and brands that don’t adapt risk losing conversion at checkout. For OTAs, loyalty programs, and travel suppliers, expanding and offering more localized alternative payment options is now essential for driving bookings and strengthening customer loyalty.

Companies In This Post

CarTrawler
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