Most common payment methods in Portugal

@Cheryl

What are the most common payment methods today in Portugal: cash, debit/credit cards, bank transfers, mobile apps or digital wallets? From my experience cash and debit/credit cards are most common. Plus MBway.

Is contactless payment (card, phone, smartwatch or via QR code) common and widely accepted? Yes, it is widely accepted, but it is always good to have some cash

Is there a popular local payment app that everyone uses? Only MBway comes to mind.

How safe and secure do you feel using digital payments in Portugal? I feel pretty safe. However, to me MBway can be unsafe because it depends on the payer to type in the correct phone number. I would also prefer using cash with unfamiliar street vendors or the like.

Do you still need to carry cash for small shops, markets, taxis or administrative services? I think it is very smart to have some cash for smaller payment to completely unknown people. Or for a coffee or a beer. And after the 100% power outage all over Spain and Portugal I would always have cash available.

Are there any particularities in payment habits or methods in Portugal that surprised you? Almost all banking transaction and tax payments can be made at an ATM.

     There are some shops that only accept cash so I always carry some but for the most part I use contactless payment for everyday purchases using a US based credit card to build rewards points and always hit the number 2 twice to pay in euros after noticing on a charge slip there were two relatively small charges on the receipt for the convenience of using the store's conversion. Best to avoid this charge on every purchase and rely on your bank to settle the conversion. I find it very convenient to use Wise for fund transfers and maintain a minimum balance in my Portuguese bank account or prepare for large purchases. When using Wise after they informed me it would save fees it's best to do a direct draft against your bank to avoid wiring fees and even maintain a balance in your Wise account which actually pays a competitive interest on the balance. Been doing this for a few years and seems to be the least expensive way to pay everyday expenses.

... for the most part I use contactless payment for everyday purchases using a US based credit card to build rewards points - @bobinportugal2

🤣 Are you aware of the extra fees that international payment systems (IPS) charge you and charge portuguese acquirer for each transaction ? I hope the digital euro becomes a reality soon, to put an end to the dominance of Visa, Mastercard and American Express in Europe. The rewards points you receive are far less (!) than what you’re paying extra… or do you think that payment service providers, just like insurance companies, are in business to lose money ????

... for the most part I use contactless payment for everyday purchases using a US based credit card to build rewards points  - @bobinportugal2
🤣 Are you aware of the extra fees that international payment systems (IPS) charge you and charge portuguese acquirer for each transaction ? I hope the digital euro becomes a reality soon, to put an end to the dominance of Visa, Mastercard and American Express in Europe. The rewards points you receive are far less (!) than what you’re paying extra… or do you think that payment service providers, just like insurance companies, are in business to lose money ???? - @JohnnyPT

Funny. I hope the digital euro never comes, but I also hope that the EU comes up with a payment system like they have in Brazil. Overall I wouldn't mind paying everything in cash, but I guess those days are over. What I find annoying is that I have paid tax on my salary and then (in Portugal) I have to pay 23% IVA on so many things I buy from my already taxed income. But, that's a different story.

I tend to use a debit card particularly for larger purchases - usually an Activo card as they don't charge a monthly fee - this also helps with personally reclaiming the VAT when i take the items out of the EU. I do carry cash as it easy for a coffee or the morning baker's van but was confused last week when the Con******* supermarket ATM didn't have any cash then the nearby Mill**** bank had closed down.

Olá, just to add that we find in both cities and countryside (we live in the Alentejo), we find contactless payments via the phone widely accepted, just maybe the taverns in villages are not so likely. Also, that the Lisbon metro accepts contactless now, which is very convenient.