What is MB WAY and how does it work?

More than 6 million Portuguese people use MB WAY, the country’s leading mobile payment platform - that is over half the population. This system enables instant person-to-person transfers, contactless in-store payments using NFC, online shopping and bill paying, all accessible through a single smartphone app connected to the user’s Portuguese bank account.

Within Europe, Portugal stands out for its payment ecology, driven by two nationally engineered systems: Multibanco, the extensive ATM and payment referral network, and MB WAY, the mobile payment platform that has swiftly become the Portuguese preference for digital payments.

Businesses operating in Portugal, whether targeting consumer markets, executing B2B transactions or managing e-commerce operations, must integrate these systems along with conventional European payment methods into their strategy.

Major payment methods operating in Portugal, relevance across different business types, integration requirements and the evolving regulatory environment are addressed in this guide.

For business bank account options, see Opening a Business Bank Account in Portugal. For fintech regulation, see Portugal Fintech Regulations.

The SIBS Ecosystem: Multibanco and MB WAY

SIBS: The Infrastructure Provider

SIBS (Sociedade Interbancaria de Servicos) is the interbank services company that operates Portugal’s payment infrastructure. Owned by a consortium of Portuguese banks, SIBS manages:

  • The Multibanco ATM network (approximately 11,500 ATMs across Portugal)
  • The Multibanco payment terminal (POS) network
  • The MB WAY mobile payment platform
  • The MB NET virtual card system
  • Payment processing for e-commerce

SIBS is the central node of Portuguese payments, and virtually all domestic electronic payment methods flow through its infrastructure.

Multibanco

Multibanco is Portugal’s national ATM and payment network, in operation since 1985. Beyond cash withdrawals, Multibanco ATMs serve as multi-purpose payment terminals where consumers can:

  • Pay invoices using reference numbers (entidade + referencia + valor)
  • Pay taxes and government fees
  • Top up mobile phone credit
  • Make charitable donations
  • Purchase event tickets
  • Pay highway tolls

Multibanco Payment References for Businesses:

The Multibanco reference system is a cornerstone of Portuguese commerce. A business issues a payment reference consisting of:

Component Example Description
Entidade (Entity) 12345 Unique 5-digit code assigned to the business by SIBS
Referencia (Reference) 123 456 789 Unique 9-digit reference for each transaction
Montante (Amount) EUR 150.00 Fixed amount associated with the reference

Reference payment can be made at any Multibanco ATM, through online banking, or the MB WAY app. Businesses receive confirmation within minutes of payment being processed.

Advantages for businesses:

  • Near-universal acceptance among Portuguese consumers
  • Transaction-level automatic payment reconciliation works because each reference is unique to the transaction.
  • There are no chargebacks since this method differs from credit card payments.
  • Transaction fees run low, coming to about EUR 0.25-0.50 per reference paid.
  • Available 24⁄7 through ATMs and online banking

Obtaining a Multibanco entity number: Businesses apply for an entity number through SIBS or through their bank. The application requires a Portuguese bank account, company registration documents and a description of the intended use. Processing time is typically 2-4 weeks.

Multibanco references have no direct equivalent in most other European countries, and foreign businesses entering the Portuguese market frequently underestimate their importance.

In Portuguese e-commerce, offering Multibanco as a payment option alongside credit cards can increase conversion rates by 15-30%, as many Portuguese consumers prefer the reference system for its familiarity, the absence of the need to enter card details online, and the ability to pay at a convenient time through their banking app.

For B2B invoicing, including a Multibanco reference on invoices is standard practice and significantly reduces payment collection times compared to relying solely on bank transfers.

MB WAY

MB WAY is Portugal’s leading mobile payment application, launched by SIBS in 2015 and now used by over 6 million Portuguese residents. It has become the dominant method for person-to-person transfers and is increasingly used for in-store and online payments.

Key features:

Feature Description
P2P transfers Instant transfers between MB WAY users using phone numbers
In-store payments NFC contactless payments at compatible terminals
Online payments Checkout option on e-commerce sites
Bill payments Pay Multibanco references through the app
Split bills Divide payments among multiple users
ATM withdrawals Cardless ATM withdrawals using a code

MB WAY for businesses:

To accept MB WAY payments, businesses need:

  • A merchant agreement with SIBS or a payment service provider that integrates MB WAY
  • For in-store: A contactless-enabled payment terminal
  • For e-commerce: Integration of the MB WAY checkout API through a payment gateway

Transaction fees: MB WAY merchant fees are typically 0.7% to 1.2% of the transaction value, which is competitive with card payment fees. P2P transfers between individuals are free.

MB NET

MB NET is a virtual card service that generates temporary Visa or Mastercard numbers for online purchases. Users create virtual cards through their bank’s online banking or the MB WAY app, with custom spending limits and expiry dates. While primarily a consumer tool, businesses should be aware that MB NET transactions appear as standard Visa/Mastercard transactions on the merchant side.

Card Payments

Debit Cards

Portuguese debit cards (typically Visa Debit or Mastercard Debit) are widely used for in-store purchases. The Multibanco network processes domestic debit transactions, while international networks handle cross-border transactions.

Merchant fees for debit cards: 0.2% to 0.5% of transaction value (regulated by EU Interchange Fee Regulation).

Credit Cards

Credit card penetration in Portugal is lower than in Northern European countries but has been growing steadily. Visa and Mastercard are the dominant networks, with American Express having limited acceptance.

Merchant fees for credit cards: 0.5% to 1.5% of transaction value for consumer cards, up to 2.5% for commercial/corporate cards.

Contactless Payments

Contactless payment adoption has accelerated significantly since the pandemic, with the contactless limit increased to EUR 50 per transaction without PIN. Most modern payment terminals in Portugal support NFC payments via cards, smartphones (Apple Pay, Google Pay), and MB WAY.

SEPA Transfers

SEPA Credit Transfers (SCT)

Standard SEPA transfers are widely used for B2B payments, salary payments and larger transactions. Processing time is typically 1 business day for standard transfers and under 10 seconds for SEPA Instant payments.

SEPA Direct Debits (SDD)

SEPA Direct Debits are used for recurring payments such as utility bills, insurance premiums and subscription services. Businesses can set up SDD collection through their bank after obtaining a creditor identifier from the Banco de Portugal.

SEPA Service Typical Cost Processing Time
SEPA Credit Transfer (standard) EUR 0-1.00 1 business day
SEPA Instant Payment EUR 0-0.50 Under 10 seconds
SEPA Direct Debit (per collection) EUR 0.20-0.50 2-5 business days (first collection)

SEPA Instant Payments havepenetratedthe Portuguese market widely, supporting both consumer transfers via MB WAY and B2B transactions. EU bank account holders now have access to SEPA Instant across the entire bloc at no extra cost compared to standard SEPA transfers, driving faster adoption.

Businesses experience enhanced cash flow from confirmed payments arriving in seconds instead of waiting for next-day settlement, and they can perform real-time transaction verification immediately.

E-Commerce Payment Integration

Payment Method Portuguese Market Share (approx.) Integration Method
MB WAY 35-40% of online transactions SIBS API or payment gateway
Multibanco references 20-25% SIBS API or payment gateway
Visa/Mastercard 25-30% Payment gateway (Stripe, Adyen, etc.)
PayPal 5-10% PayPal API
Bank transfer 3-5% Manual or banking API

Payment Service Providers Active in Portugal

Provider MB WAY Multibanco Cards International Best For
SIBS (ifthenpay) Yes Yes Yes Limited Portuguese-focused businesses
Stripe Yes (via partner) Yes (via partner) Yes Yes International businesses, SaaS
Adyen Yes Yes Yes Yes Enterprise, omnichannel
PayPal No No Yes Yes International sales
Mollie Yes Yes Yes Yes European SMEs
Easypay Yes Yes Yes Limited Portuguese SMEs

Integration Considerations

Portuguese-market businesses need their minimum viable payment stack to include:

  1. MB WAY for mobile-first consumers
  2. Multibanco references for consumers who prefer ATM/banking payments
  3. This offering caters to card-paying consumers and international customers through Visa/Mastercard.
  4. PayPal for additional international coverage

Buy Now, Pay Later (BNPL)

BNPL services are growing in Portugal, driven by younger consumers and e-commerce growth:

  • Cofidis Pay. Portuguese market leader in consumer credit, offers BNPL installment options
  • Cetelem. A BNP Paribas subsidiary that provides point-of-sale financing.
  • Klarna. Some Portuguese e-commerce platforms offer this option to buyers.
  • Scalapay. The company is building its footprint in Portuguese retail.

BNPL adoption in Portugal remains lower than in Northern European markets, but growth trajectories suggest increasing relevance for e-commerce businesses.

Cash

Despite the growth of digital payments, cash remains relevant in certain Portuguese business contexts:

  • Small retail and hospitality businesses in rural areas face particular challenges.
  • Market vendors and street commerce
  • Some international visitors prefer cash, which makes tourism-facing businesses accommodate that preference.

Portuguese law requires businesses to issue an invoice for all transactions, including cash sales, through certified invoicing software connected to the Autoridade Tributaria.

Businesses handling significant cash volumes should be aware of AML reporting requirements for transactions above EUR 10,000.

Cryptocurrency and Digital Assets

Portugal has been relatively open to cryptocurrency, though the regulatory framework is evolving:

  • Crypto-to-fiat transactions are subject to capital gains tax (28% for individuals, standard IRC for companies)
  • Crypto payment processors (BTCPay Server, BitPay) can be used by Portuguese businesses
  • The Banco de Portugal keeps a registry of virtual asset service providers.
  • Regulatory clarity has improved since the implementation of the EU MiCA framework

Regulatory information can be found in Portugal Fintech Regulations.

Payment Method Selection Guide

Business Type Primary Methods Secondary Methods
Retail (physical store) Card terminals (NFC), MB WAY Cash, Multibanco
E-commerce (domestic) MB WAY, Multibanco, Cards PayPal, BNPL
E-commerce (international) Cards, PayPal MB WAY, Multibanco (for PT customers)
B2B services SEPA transfer, Multibanco reference Cards, Direct Debit
Subscription/SaaS SEPA Direct Debit, Cards MB WAY, Multibanco
Freelancer/consultant SEPA transfer, MB WAY Multibanco reference

MB WAY is driving growth in the Portuguese payment ecosystem at the expense of cash and legacy card methods. Businesses building operations in Portugal must integrate MB WAY and Multibanco from the start - this is not optional but essential for competitive position. When Portuguese consumers find a checkout without these options, they often abandon purchases in favor of rivals that provide them.

Integration fees are low (most payment platforms bundle Portuguese methods into standard plans), yet the lift in conversion rates is substantial.

For comprehensive business banking options, see Opening a Business Bank Account in Portugal. For tax compliance related to payment processing, see Portugal VAT (IVA) Guide.

Transaction Fees by Payment Method

Payment mix economics matter for every Portuguese merchant. Payment method selection materially affects gross margin, especially for low-ticket businesses.

Payment Method Merchant Fee (%) Fixed Fee (EUR) Typical Settlement Chargeback Rate
Multibanco reference 0.10-0.25 0.05-0.15 D+1 0% (push payment)
MB WAY 0.25-0.50 0.05 Real-time <0.1%
Portuguese debit cards 0.20-0.40 (capped by IFR) 0.05 D+1 to D+2 <0.3%
Credit cards (EU) 0.30-1.50 (capped by IFR) 0.10 D+2 0.3-0.8%
Credit cards (non-EU) 2.50-4.50 0.25 D+2 0.5-1.5%
SEPA Direct Debit 0.15-0.40 0.20 D+2 to D+5 8-week return window
PayPal 1.20-3.40 0.35 Instant 1.0-2.5%
Klarna / BNPL 2.00-4.50 0.30 D+14 (deferred) <0.5%

EU Interchange Fee Regulation

Card payment economics in Portugal are governed by EU Regulation 2015⁄751 on interchange fees for card-based payment transactions (IFR), which sets binding caps on interbank interchange. Merchants should be aware that the savings under IFR should be passed through by their acquirer.

Card Type Interchange Cap Notes
Consumer debit (EU-issued) 0.2% of transaction Portugal applies the EU-wide cap
Consumer credit (EU-issued) 0.3% of transaction -
Commercial cards Not capped Typically 1.0-2.0%
Non-EU issued cards Not capped by IFR Often 1.5-3.0%

According to Regulation (EU) 2015⁄751 Article 3, interchange fees for consumer card transactions are capped across the European Economic Area, and merchants are entitled to “unblended” pricing from acquirers so that each transaction’s true interchange cost is visible - a right Portuguese merchants frequently fail to exercise when negotiating with Portuguese acquirers [5].

PSD2 Strong Customer Authentication (SCA)

Portuguese payment processors apply Regulatory Technical Standards on Strong Customer Authentication under PSD2. This affects merchant checkout flows and abandonment rates.

  • SCA required for most online payments. Two of the three factors (knowledge, possession, inherence) need to be confirmed.
  • Exemptions. for low-value transactions (
  • Merchant responsibility. Adopt 3D Secure 2.x and send rich transaction data to the acquirer to boost chances of exemption.
  • Liability shift. Without SCA (or valid exemption), fraud liability falls on the merchant, with SCA, liability shifts to the issuer.

Payment Method Adoption in Portuguese E-Commerce

Data from independent industry sources on Portuguese e-commerce checkout composition varies widely (MB WAY alone ranges from about 25% to over 40% across different merchant categories and studies), and the Banco de Portugal Payment Systems Report releases aggregate transaction volumes and values without breaking out e-commerce methods in detail.

When international merchants design Portuguese checkout experiences, approach any single precise percentage split with caution and prioritize the methods that are strongest: cards, MB WAY and Multibanco come first, in that rough order of usage frequency, with PayPal and bank transfer as secondary choices.

Banco de Portugal’s Payment Systems Report shows continued strong growth in MB WAY instant mobile payment volumes in recent years, reflecting Portugal’s transition from cash and card-based commerce toward mobile-first payment flows that are distinctive to the Portuguese market.

How to open a business bank account in Barclays in Portugal?

Barclays Portugal closed its retail operations in 2016 and transferred accounts to Bankinter. For Portugal-based founders, business banking is available at Millennium BCP, Santander Totta, Novo Banco, BPI, Caixa Geral de Depositos (CGD), ActivoBank, Banco Best and Bankinter (successor to Barclays Portugal).

Timeline: 1 to 4 weeks for residents, 4 to 8 weeks for non-residents requiring enhanced due diligence. Minimum opening deposits: EUR 0 to EUR 500 depending on bank. Monthly fees: EUR 0 to EUR 25. For Portuguese Lda owners (EUR 360 Empresa na Hora formation with EUR 1 minimum capital), Millennium BCP and Santander Totta are the most common traditional choices.

ActivoBank offers fully digital onboarding for residents, Banco Best is strong for fintech-minded founders. For UK-originated founders looking for Barclays-equivalent UK Ltd banking while based in Portugal, Barclays UK remains accessible for UK Ltd entities though with 4 to 10 week non-UK-resident onboarding.

Portuguese businesses using MB WAY (domestic instant payments) and Multibanco (ATM network) benefit from any of the Portuguese traditional banks which all integrate with these rails.

How to open a business bank account in California for Portuguese founders?

Portuguese founders open California LLC or California-registered entity bank accounts at traditional banks (Bank of America, Wells Fargo, Chase, Citibank) with in-person branch visits, or at fintechs (Mercury, Relay, Wise Business) remotely. California LLC formation costs $70 via California Secretary of State plus the mandatory $800 annual franchise tax (due regardless of revenue).

Alternative: form a Delaware LLC ($110 + $300/year) or Wyoming LLC ($100 + $60/year) and register as a foreign entity in California only if you have California nexus. EIN is free from IRS (4 to 8 weeks by fax for Portuguese founders without SSN).

Fintechs accept remote onboarding for Portuguese-owned California LLCs: Mercury (5 to 10 days, free), Relay (5 to 10 days, free), Wise Business (1 to 5 days, EUR 31 setup). Traditional banks require US visit for full KYC.

For Portuguese founders using MB WAY and Multibanco domestically while operating a California LLC for US customers, the setup pairs Millennium BCP or Santander Totta (EUR) with Mercury or Relay (USD) for dual-currency operations.

How to open a business bank account in Chase for Portugal-based founders?

Chase Business Complete requires US residency or in-person visits to a US branch - Chase does not offer remote international onboarding.

For Portugal-based founders operating a US LLC, the Chase path is: form a US LLC (Delaware $110 + $300/year or Wyoming $100 + $60/year), obtain free EIN from IRS (4 to 8 weeks by fax), schedule a US trip and visit a Chase branch with LLC Certificate of Formation, EIN confirmation and passport. Chase Business Complete monthly fee: $15 (waivable with $2,000 balance or $2,000 monthly debit spending).

Timeline post-visit: 1 to 3 business days. For Portugal-based founders avoiding US travel, fintech alternatives are standard: Mercury (fully remote, 5 to 10 days, free, $0 monthly), Relay (remote, 5 to 10 days, free), Wise Business (1 to 5 days, EUR 31 setup for GBP/USD local IBAN).

Portugal-side banking: Millennium BCP, Santander Totta, Novo Banco, BPI, ActivoBank for Portuguese Lda entities (EUR 360 formation via Empresa na Hora with EUR 1 minimum share capital). Dual-entity founders often use Millennium BCP (EUR) + Mercury (USD).