Market Overview

The Portugal digital banking market size reached USD 37.20 Million in 2024 and is projected to grow to USD 126.39 Million by 2033, exhibiting a CAGR of 13.01% during the forecast period 2025-2033. Market growth is driven by increasing smartphone and internet penetration, government digitalization support, and rising demand for secure and convenient financial services. Innovations in fintech, open banking regulations, and adoption of technologies such as AI, biometrics, and cloud platforms further accelerate expansion. 

Study Assumption Years

• Base Year: 2024
• Historical Year/Period: 2019-2024
• Forecast Year/Period: 2025-2033

Portugal Digital Banking Market Key Takeaways

• Current Market Size: USD 37.20 Million (2024)
• CAGR: 13.01%
• Forecast Period: 2025-2033
• In 2024, around 89% of Portugal’s population used the internet regularly, supporting rapid digital banking growth.
• Government regulatory initiatives promote cashless payments, with 99.8% of retail payments electronic in 2024.
• Younger generations drive demand for mobile-first financial products with features like real-time payments and budgeting.
• Banks invest heavily in AI, biometrics, and cloud technologies to enhance customer experience.
• Post-pandemic shifts have increased preference for online transactions even among older demographics.

Sample Request Link: https://www.imarcgroup.com/portugal-digital-banking-market/requestsample

Market Growth Factors

The Portugal digital banking industry is expected to grow in the coming years because more people are penetrating the smartphone and internet markets; approximately 89% of the Portuguese population uses the internet in 2024. High-speed internet is used by over 90% of households. Mobile-first banking benefits. Low-cost smartphones and 5G technology advanced mobile banking. The advance offers transaction options that are faster and more secure. As online penetration and network density increase through urban and rural areas, banking becomes more inclusive and generates greater digital literacy, with fintech innovating.

Government support and regulatory frameworks are important for market momentum. Portugal is in line with the EU digital agenda and the PSD2 Open Banking regulations which encourage competition and allow banks to share secure data with authorized fintech partners. In 2024, 99.8% of all retail transactions were cashless as part of the country's commitment to a cashless economy. Cyber and data security standards enforced by the Bank of Portugal incentivise the use of digital banking applications by consumers and are supported by the public sector's digitalization efforts.

Changing consumer demographics is one of the main drivers behind the growth of the green finance market, with Millennials and Gen Z preferring mobile-first, frictionless financial products that offer 24/7 access, budgeting, real-time payments, and contactless payments. Digital payments and online transactions have skyrocketed because of the pandemic. Simplified interfaces and biometric security features cause older customers to prefer online transactions now. Due to this, banks and fintechs are nowadays focused on offering users simplified app experiences, personalization, and loyalty features to attract consumers yearning for flexibility and efficiency in managing their finances, which is why digital banking enjoys sustained growth in Portugal.

Market Segmentation

Services Insights:

• Transactional: Cash Deposits and Withdrawals, Fund Transfers, Auto-Debit/Auto-Credit Services, Loans
• Encompasses core banking activities including cash handling, transfer of funds, and credit services, facilitating day-to-day financial transactions.
• Non-transactional Activities: Information Security, Risk Management, Financial Planning, Stock Advisory
• Covers supportive services focusing on safeguarding digital assets, managing financial risks, and providing advisory services for planning and investment.

Deployment Type Insights:

• On-Premises
• Banking services deployed and managed within the institution’s own infrastructure, offering control and customization.
• Cloud
• Services delivered via cloud platforms, ensuring scalability, flexibility, and cost efficiency in digital banking operations.

Technology Insights:

• Internet Banking
• Online platforms accessed through browsers facilitating account management, payments, and banking functions.
• Digital Payments
• Electronic payment systems enabling quick and secure transactions without cash.
• Mobile Banking
• Banking applications and services optimized for mobile devices, providing convenient access anytime and anywhere.

Industries Insights:

• Media and Entertainment
• Digital financial solutions tailored to media and entertainment sector needs.
• Manufacturing
• Services targeting the financial requirements of the manufacturing industry.
• Retail
• Banking technologies serving retail businesses and customers.
• Banking
• Core financial sector banking services and innovations.
• Healthcare
• Digital financial offerings specialized for the healthcare industry.

Regional Insights

The market segments regions into Norte, Centro, A. M. Lisboa, Alentejo, and others. However, the report does not explicitly specify a dominant region or provide detailed market share and CAGR statistics by region. Not provided in source.

Summary: Not provided in source.

Recent Developments & News

In August 2025, Novo Banco expanded operations in Portugal after its acquisition by France’s BPCE for €6.4 billion, strengthening retail banking and investment services. Despite lower ECB rates, Novo Banco posted a 17.4% rise in first-half net profit to €434.9 million. In July 2025, Revolut opened a Lisbon branch offering Portuguese IBANs, Multibanco, MB Way, and deposit interest, serving 1.8 million local customers. France’s BPCE acquisition of a 75% stake in Novo Banco, expected to close in early 2026, enhances Novo Banco’s financial position, enabling growth in Portugal’s banking sector.

Key Players

• Novo Banco
• BPCE
• Revolut

Customization Note:

If you require any specific information that is not covered currently within the scope of the report, we will provide the same as a part of the customization.

About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.

Contact Us

IMARC Group,

134 N 4th St. Brooklyn, NY 11249, USA,

Email: sales@imarcgroup.com,

Tel No: (D) +91 120 433 0800,

United States: +1-201971-6302