For many years, the Multibanco card was one of the most recognized symbols of the modernization of payments in Portugal. From simply going to the ATM to shopping at the supermarket, it has become part of the routine of millions of people and helped to create a relationship of trust with electronic payment methods.
Now, that relationship is changing. The physical card continues to be present in the wallets of many Portuguese people, but cell phones, smart watches, bracelets and QR codes are gaining more and more space when it comes to paying. According to , more than half of card purchases in 2024 will have already been made using contactless technology.
The same entity indicates that contactless payments grew 24% in quantity and 26.9% in value in that respective year.
This technology was used in 1.4 billion transactions, mainly in retail and restaurants, two sectors where fast payments are part of consumers’ daily lives.
Cell phone is the new card
The cell phone has become one of the main rivals of the physical ATM card. Through applications such as MB WAY, it is possible to pay in stores by contacting, using NFC technology, or via QR code, without the need to use the card at the machine.
On the official MB WAY page, the application is presented as a way to pay in physical stores using a QR Code or NFC, in addition to allowing online payments using a cell phone number. The platform itself already claims to have reached 7 million users, which shows the dimension that this service has gained in Portugal.
Expansion is not limited to MB WAY. Services such as Apple Pay and Google Wallet also allow you to add bank cards to your cell phone and make contactless payments at compatible terminals. Apple provides a list of associated banks and issuers in Portugal, while Google explains that mobile payments depend on the cards and banks supported in each country.
Security continues to be decisive
One of the reasons that helps explain this change and the lower use of Multibanco cards is security. In mobile payments, the actual card number does not have to be shown to the merchant in the same way as when using a traditional physical card.
A explains that, in Apple Pay, the card number is never shared with the application or website used for payment. Google reports that contactless payments use encrypted payment codes to hide the real card number.
In the case of MB WAY NFC, the service’s official page indicates that security protocols and algorithms are used to guarantee the confidentiality, integrity and authentication of transmitted, processed and stored data. The same source also says that communications and transactions are permanently monitored by a team dedicated to fraud prevention and detection.
Payments on your wrist
Payments through body-worn devices, such as watches, bracelets or keychains, are also starting to be part of this new scenario. In Portugal, MB WAY pulse allows you to associate devices with the MB WAY service and pay at contactless terminals, without having to use a physical card.
According to the official MB WAY pulse page, there are different formats, including band, watchloop, tag and keychain. The same source indicates that these devices can be associated with the desired card through the MB WAY application, with the possibility of setting limits and blocking the device when necessary.
Despite this, these payments still appear to have more limited use than cell phones or contactless cards. Its advantage lies mainly in its convenience: instead of searching for your wallet or unlocking your cell phone, just bring the device closer to the terminal.
QR Code that simplifies
Another growing trend is the use of QR codes. In MB WAY, this feature allows you to pay in physical stores by pointing your cell phone camera at the code displayed on the terminal, then confirming the operation in the app.
For merchants, there are also solutions that reduce dependence on traditional terminals. SIBS Pay presents QR Code Express as a resource that allows payments via QR Code without the need for an Automatic Payment Terminal, being able to generate codes associated with a product and a fixed amount.
Still, this doesn’t mean TPA is going away. On the contrary, Banco de Portugal indicates that, at the end of 2024, 93% of automatic payment terminals in the country were enabled for contactless technology, which shows an adaptation of the traditional system to new forms of payment.
Future is hybrid
The Multibanco card is unlikely to disappear overnight. It continues to be useful for withdrawals, for people less accustomed to digital, for situations in which the cell phone runs out of battery or for contexts in which a certain mobile service is not available.
What appears to be happening is a change in the role of the physical card. Instead of always being the protagonist, it increasingly starts to function as a security alternative, while cell phones and other devices take over day-to-day payments.
Therefore, the future of payments in Portugal must be hybrid. Physical cards, cell phones, wearables and QR Codes will continue to coexist, but with different weights. The digital revolution is already underway, although plastic has not yet said its last goodbye.
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