Portugal's payment landscape is distinctive within Europe, characterized by the dominance of two nationally developed systems: Multibanco, the ubiquitous ATM and payment reference network, and MB WAY, the mobile payment application that has rapidly become the country's preferred method for digital transactions. Understanding these systems alongside standard European payment methods is essential for any business operating in Portugal, whether serving domestic consumers, processing B2B transactions, or managing an e-commerce platform.
This guide covers the major payment methods available in Portugal, their relevance for different business types, integration requirements, and the evolving regulatory environment.
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 12,000 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 |
Customers can pay this reference at any Multibanco ATM, through their bank's online banking portal, or via the MB WAY app. Payment confirmation is typically received by the business within minutes.
Advantages for businesses:
- Near-universal acceptance among Portuguese consumers
- Automatic payment reconciliation (each reference is unique to a transaction)
- No chargebacks (unlike credit card payments)
- Low transaction fees (approximately 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 2014 and now used by over 5 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 have gained significant traction in Portugal, both for consumer transfers (through MB WAY, which uses SEPA Instant as its underlying infrastructure) and for B2B payments. The European Commission's regulation making SEPA Instant available to all EU bank account holders at no additional cost compared to standard SEPA transfers has accelerated adoption. For businesses, the ability to receive confirmed payments in seconds rather than waiting for next-day settlement improves cash flow and enables real-time transaction verification.
E-Commerce Payment Integration
Recommended Payment Stack for Portuguese E-Commerce
| 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
For businesses serving the Portuguese market, the minimum viable payment stack should include:
- MB WAY for mobile-first consumers
- Multibanco references for consumers who prefer ATM/banking payments
- Visa/Mastercard for card-paying consumers and international customers
- 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: BNP Paribas subsidiary, offers point-of-sale financing
- Klarna: Available through some Portuguese e-commerce platforms
- Scalapay: Growing presence 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 (particularly in rural areas)
- Market vendors and street commerce
- Tourism-facing businesses (some international visitors prefer cash)
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 maintains a registry of virtual asset service providers
- Regulatory clarity has improved since the implementation of the EU MiCA framework
For regulatory details, see 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 |
The Portuguese payment landscape is evolving rapidly, with MB WAY's market share growing at the expense of both cash and traditional card payments. For businesses establishing themselves in Portugal, investing in MB WAY and Multibanco integration from the outset is not optional but essential for competitiveness. Portuguese consumers who encounter a checkout page without these options will frequently abandon the purchase in favor of a competitor that offers them. The integration cost is modest (most payment gateways include Portuguese methods in their standard packages), and the impact on conversion rates is significant.
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.
Related Corpy Resources
- Portugal business guide for a full overview of doing business in Portugal
- Banking in Portugal for related articles on this topic
- Company formation in Portugal to explore adjacent considerations
- Corporate tax in Portugal to explore adjacent considerations
- Business laws in Portugal to explore adjacent considerations
References
- Banco de Portugal. https://www.bportugal.pt/en
- Portuguese Securities Market Commission (CMVM). https://www.cmvm.pt/
- OECD Inclusive Framework on BEPS. https://www.oecd.org/tax/beps/
- World Bank Doing Business Archive. https://archive.doingbusiness.org/
Frequently Asked Questions
What is MB WAY and how does it work?
MB WAY is Portugal's dominant mobile payment system, used by over 5 million people (approximately half the population). It allows instant person-to-person transfers, in-store contactless payments via NFC, online purchases, and bill payments, all through a smartphone app linked to the user's Portuguese bank account. For businesses, accepting MB WAY payments requires integration through a payment service provider or bank merchant agreement. MB WAY transactions are processed through the SIBS network, which also operates the Multibanco ATM system.
What are Multibanco references and how do businesses use them?
Multibanco references are a uniquely Portuguese payment system where a business generates a reference number (consisting of an entity code, reference number, and amount) that the customer can use to make payment at any Multibanco ATM, through their bank's online banking, or via the MB WAY app. The system is widely used for invoicing, utility payments, government fees, and e-commerce. Businesses obtain an entity number from SIBS and can generate unlimited references. The system provides automatic reconciliation and confirmation of payment.
What payment methods should a Portuguese e-commerce business accept?
A Portuguese e-commerce business should accept MB WAY (used by the majority of online shoppers), Multibanco references (preferred for higher-value purchases), credit and debit cards (Visa, Mastercard), and SEPA bank transfers. For international sales, adding PayPal and Stripe provides coverage for non-Portuguese customers. The integration of MB WAY and Multibanco as checkout options is essential for maximizing conversion rates in the Portuguese market, as many Portuguese consumers prefer these methods over credit cards.