Payment methods by region: EU
Configure local EU payment methods in Recurly — including iDEAL, SEPA Direct Debit, Bancontact, and Dankort—to maximize subscription conversion, meet IFR co-badged card rules, and comply with PSD2 3DS requirements.
Scale · Payment methods by region
EU
Why Belgium, France, Germany, Denmark, and the Netherlands each favor a different local method.
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EU
Why it matters
Shared currency and shared compliance rules mask sharp differences in how EU customers actually prefer to pay. Belgium looks to Bancontact, France to SEPA and Carte Bancaire, Germany to PayPal over cards, Denmark to Dankort, and the Netherlands to iDEAL. Treating "EU" as one payment strategy leaves conversion on the table in every one of these markets.
| Country | Dominant local method | Why it matters |
|---|---|---|
| Belgium | Bancontact | Used by ~60% of Belgian online shoppers; co-badged card mandate applies |
| France | SEPA Direct Debit / Carte Bancaire | Strong preference for SEPA and PayPal; Carte Bancaire required under co-badging rules |
| Germany | PayPal | 47% conversion lift for digital goods merchants offering PayPal; #1 method in the country |
| Denmark | Dankort | Co-branded Visa card; effectively mandatory for Danish subscription conversion |
| Netherlands | iDEAL | Over 70% of Dutch online purchases; 39% conversion lift when offered |
Country-Specific Performance & Breakdown
Select a country below to view detailed payment method sign-up and renewal conversion metrics, volume shares, market considerations, and expansion checklists.
🇧🇪 Belgium — Euro (EUR)
Considerations
- Bancontact is the primary local card scheme, used by nearly 60% of Belgian consumers for online purchases — absence has a direct impact on conversion.
- SEPA Direct Debit increases conversion by 12% when used by EU customers.
- Payconiq is the companion mobile app to Bancontact, growing especially among younger consumers.
- Standard VAT rate is 21%. Register via EU OSS scheme once exceeding €10,000 cross-border digital services threshold.
- Companies must notify customers at least 15 days in advance of a renewal. A 14-day right of withdrawal applies to most digital subscriptions.
- Belgium has three official languages: French, Dutch (Flemish), and German.
Expansion Checklist
- Enable EUR currency
- Enable 3DS (PSD2 compliance)
- Register for EU VAT via OSS scheme
- Enable SEPA Direct Debit
- Support Bancontact under Co-badged Card mandate
- Offer invoice translations in French, Dutch, and German
🇫🇷 France — Euro (EUR)
Considerations
- French law requires all commercial communications, contracts, and consumer-facing materials directed at French consumers be in French — this is a legal requirement.
- French law requires B2C businesses to provide access to a consumer mediation service for dispute resolution.
- Strong preference toward SEPA Direct Debit and PayPal.
- VAT rate is 20%. Register via EU OSS scheme once exceeding €10,000 threshold.
- Renewable contracts must notify consumers of their right to cancel between 1–3 months before renewal. Failure gives the consumer the right to cancel and receive a refund at any time.
- Consumers can cancel most subscription contracts at any time after the first 12 months with just 1 month's notice.
Expansion Checklist
- Enable EUR currency
- Enable 3DS (PSD2 compliance)
- Register for EU VAT via OSS scheme (20% rate)
- Translate all customer-facing content into French
- Enable SEPA Direct Debit and PayPal
- Implement consumer mediation service reference in T&Cs
🇩🇪 Germany — Euro (EUR)
Considerations
- PayPal is the #1 payment method in Germany — 64% increase in conversion when offered. Many consumers do not use or prefer credit cards.
- SEPA direct deposit and digital wallets are gaining popularity.
- Businesses offering Revolut Pay via Stripe saw an average 3% increase in conversion and 13% increase in revenue.
- B2C subscriptions must include a clearly labelled cancellation button: 'Jetzt kündigen' ('Cancel now').
- Auto-renewal periods for consumer contracts are capped at one month at a time after the initial term.
- VAT rate is 19%. Register via EU OSS scheme.
Expansion Checklist
- Enable EUR currency
- Enable 3DS (PSD2 compliance)
- Register for EU VAT via OSS scheme (19% rate)
- Enable PayPal as priority payment method
- Enable SEPA Direct Debit
- Implement 'Jetzt kündigen' cancellation button (legal requirement)
🇮🇹 Italy — Euro (EUR)
Considerations
- PayPal is the #2 payment method in Italy — 40.64% increase in conversion when offered. Many consumers do not use or prefer credit cards.
- SEPA direct deposit and digital wallets are gaining popularity.
- Italy has one of the highest adoption rates of digital wallets.
- Italy requires e-invoicing using the government's Sistema di Interscambio.
- Article 54-bis goes into effect 19 June 2026 and requires an explicit, dedicated cancellation button on all websites offering subscription services.
- VAT rate is 22%. Register via EU OSS scheme.
Expansion Checklist
- Enable EUR currency
- Enable 3DS (PSD2 compliance)
- Register for EU VAT via OSS scheme (22% rate)
- Enable PayPal as priority payment method
- Enable SEPA Direct Debit
- Implement e-invoicing and cancellation buttons (legal requirements)
🇩🇰 Denmark — Danish Krone (DKK)
Considerations
- Offering Dankort (co-branded Visa) is effectively mandatory — absence will materially impact conversion.
- PayPal is an increasingly popular payment method, outperforming credit cards and Apple Pay.
- Denmark's VAT rate is 25% and applies broadly to all sales.
- Subscription auto-renewal terms must be clearly disclosed at the point of sign-up.
- Despite exceptionally high English proficiency, customer-facing subscription terms and cancellation flows should be available in Danish.
- Corporate income tax rate is 22%; 15% global minimum tax for large multinationals (Pillar Two).
Expansion Checklist
- Enable DKK currency
- Enable 3DS (PSD2 compliance)
- Apply Danish VAT at 25%
- Enable Dankort (co-branded Visa) — required for conversion
- Enable PayPal
- Ensure Danish-language cancellation flows
🇳🇱 Netherlands — Euro (EUR)
Considerations
- iDEAL is the go-to method for over 70% of online purchases in the Netherlands — offering it drives a 39% increase in conversion.
- PayPal outperforms credit cards and digital wallets, though Apple Pay and Google Pay are preferred by younger Dutch consumers.
- Standard Dutch VAT rate is 21%.
- Consumers must be able to cancel via the same channel they used to subscribe (e.g. if subscribed online, must be able to cancel online).
- Dutch law prohibits automatically converting expired subscriptions into new fixed-term contracts.
- Companies must clearly state when a free trial ends and send a reminder before paid billing begins.
Expansion Checklist
- Enable EUR currency
- Enable 3DS (PSD2 compliance)
- Register for EU VAT via OSS scheme (21% rate)
- Enable iDEAL (critical for conversion)
- Enable SEPA Direct Debit and PayPal
- Implement same-channel cancellation mechanism
Across Belgium, France, Germany, and the Netherlands, SEPA converts and renews above 91% — layer it in everywhere alongside whichever local method matters most in that specific market.
Under EU IFR Regulation 2015/751, when a customer's card carries two brands (e.g. a local scheme plus Visa or Mastercard) and your checkout supports both, the customer must be able to choose which brand to pay with.
How to enable it
Enable EUR and DKK as needed
In Configuration → Currencies, add Euro for Belgium, France, Germany, and the Netherlands, and Danish Krone for Denmark. Set localized pricing per plan.
Confirm local method support on your gateway
iDEAL and SEPA are available through Adyen or Stripe. Bancontact and Dankort require Adyen specifically — confirm your configured gateway before enabling.
Enable 3D Secure
3DS is required across the EU under PSD2. Confirm it's active in Configuration → Payment gateways for every card transaction.
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