With a GDP per capita of about £86,000, Gibraltar presents important opportunities for businesses that want to expand their European operations. Beginning to accept payments in Gibraltar means integrating modern, conventional payment methods into your payment processes and becoming familiar with the nuances of local payment security guidelines.

Below, we’ll explain how to set your business up for success when you enter Gibraltar’s payment sector by:

• Blending established and modern payment methods
  
• Prioritizing the customer experience
  
• Safeguarding your payment systems
  

The state of the market

Because Gibraltar is a British overseas territory, its official currency, the Gibraltar pound (GIP), is pegged to the British pound (GBP) at a 1:1 ratio. Gibraltar’s financial institutions offer a range of services for traditional payment methods. The territory is also a leader in digital finance, significantly influenced by its advanced regulatory framework for cryptocurrencies. Bank transfers and credit and debit cards are widely used in Gibraltar, as are digital wallets.

The Gibraltar Financial Services Commission (GFSC) plays a central role in regulating financial entities within the territory, including banks and fintech companies, to ensure they adhere to consumer protection, market integrity, and financial stability standards. Although Gibraltar is not a member of the European Union, the regulatory environment aligns with international standards such as Anti-Money Laundering (AML) and Strong Customer Authentication (SCA) measures, underscoring the territory’s commitment to payment security.

Payment methods

Customers in Gibraltar use a variety of payment methods. Technological advancements are driving more customers away from cash and toward digital payment solutions.

Current usage

Cash remains a common payment method throughout the territory. UK debit cards and major credit card providers like Visa, Mastercard, and UnionPay have a strong presence in Gibraltar. Credit card options are more limited compared with the mainland UK. In 2023, Barclays ended credit card services for Gibraltar residents who don’t have mainland UK addresses. Other long-standing payment methods such as bank transfers and direct debits are also available.

While specific data on Gibraltar’s contactless payment usage isn’t available, a Visa report shows that 72% of Europeans used digital wallets actively in 2023—and Gibraltarians are no exception. Global digital wallets like Apple Pay and Google Pay are used in Gibraltar.

Popular B2C payment methods in Gibraltar

• Credit and debit cards
  
• Digital wallets (e.g., Google Pay)
  
• Bank transfers
  

Popular B2B payment methods in Gibraltar

• Credit cards
  
• Bank transfers
  
• Direct debits
  

Emerging trends

Gibraltar has established itself as a cryptocurrency hub and is the first jurisdiction to set up a comprehensive regulatory framework for blockchain and cryptocurrency businesses. Several cryptocurrency and blockchain firms have subsequently been established in Gibraltar, including Valereum, Gnosis, and Elitium. In 2022, some major retailers began accepting Bitcoin as a payment method with the Bolt Card, a contactless card powered by near-field communication (NFC) and the Bitcoin Lightning Network.

Ease and friction of entry

Businesses that are considering accepting payments in Gibraltar must understand the nuances of the payment market, including chargeback processes and payment security guidelines. Here’s a brief overview.

Taxes

Gibraltar offers a favorable tax environment for businesses, with no excise or value-added tax (VAT) and a corporate income tax of 15% on income accrued in and derived from Gibraltar.

Chargebacks and disputes

In Gibraltar, chargebacks and payment disputes are generally handled in line with international standards. The territory’s legal framework includes mechanisms that allow customers to raise disputes, and the government’s Consumer Protection division enforces customers’ rights to return faulty goods and be informed about prices, shop policies, and guarantees. The GFSC supervises financial services, including how chargebacks and disputes are managed.

International payments

Because of Gibraltar’s tourism industry and proximity to Spain, it’s important for businesses that operate in this market to understand how to accept international payments in Gibraltar. Here’s an overview.

• Currency conversion
  Any currency other than the pound will need to be converted when used at checkout. Conversion rates are determined in real time, with fees of 1%–3% that many businesses pass on to the customer. Third-party platforms like Stripe simplify the process for businesses by automatically handling currency conversion at the time of payment.

• Multicurrency features
  Incorporating multicurrency features that present prices in the customer’s local currency can improve the checkout experience and remove payment barriers for international customers.

• Payment methods from other markets
  Accepting popular payment methods from other countries can improve sales among international tourists by making the checkout process more approachable. China’s WeChat Pay, for example, is widely used by Chinese customers who live or travel abroad.

Security and privacy

Security, compliance, and regulatory factors shape the payment market in Gibraltar, and the territory has established robust regulations to ensure transparency and integrity in payments services. Here are some highlights.

• Data protection laws
  Gibraltar enacted its own General Data Protection Regulation (GDPR) after Brexit that, together with the Data Protection Act 2004, governs data protection within the territory. The legislation regulates how organizations process information about individuals, including the collection, recording, storage, use, and disclosure of personal data to third parties.

• Financial services regulations
  The Financial Services (Payment Services) Regulations 2020 apply to payments services provided in or from Gibraltar, with a focus on transparency.

• Customer authentication standards
  Gibraltar’s legislation sets standards for payments service providers to employ SCA based on two or more elements, categorized as something the customer knows (e.g., a password, a PIN), something the customer possesses (e.g., a smartphone), and something the customer is (e.g., a fingerprint).

• AML directives
  Gibraltar imposes obligations on financial businesses to prevent money laundering and the financing of terrorism. Fintech businesses must comply with the Proceeds of Crime Act 2015.

Key success factors

Businesses that want to start accepting payments or establish a presence in Gibraltar face several challenges. Understanding local payment preferences and regulatory requirements can put your business on the right track. Here are a few key areas to focus on.

• Market size considerations
  With a population of about 40,000, Gibraltar’s small market size means it’s even more important for businesses to understand local customer behavior and preferences. Businesses should customize offerings and payment options to Gibraltar’s customer base and provide Spanish translations for payment interfaces to improve the customer payment experience.

• Varied payment methods
  Accommodate a variety of credit and debit cards, bank transfers, and digital wallets to give the customer the best chance of finding one of their preferred methods when they make a purchase.

• Strict regulatory compliance
  Working through Gibraltar’s regulatory environment can be complex, especially for businesses that are unfamiliar with the local market. Adhering to financial regulations, AML standards, and data protection laws requires diligence and potentially legal guidance.

• Reinforced security protocols
  Cybersecurity threats are rising globally, and businesses that accept payments in Gibraltar can stay ahead of these risks and mitigate fraudulent transactions by using two-factor authentication for employees and customers.

Key takeaways

Despite its small size, Gibraltar’s payment scene comes with nuanced local preferences and customs that businesses should incorporate into their plans for accepting payments in this market. Here’s a recap, as well as tips for accepting payments in Gibraltar.

Blend established and modern payment methods

• Accept card payments
  Just as in the mainland UK, in Gibraltar physical credit and debit cards are used in conjunction with more technologically advanced payment methods. Accepting traditional card payments for in-person and online transactions will help you avoid alienating customers who don’t use digital methods.

• Embrace digital wallets
  Customers in Gibraltar use Apple Pay, Google Pay, and other digital wallets. Accommodating these types of digital payments can improve checkout speed and customer convenience.

• Explore Bolt Card payments
  Bitcoin can be used as a payment method in Gibraltar through the Bolt Card. Explore the possibility of accepting this cryptocurrency in order to attract tech-savvy customers.

Prioritize the customer experience

• Localize customer interfaces
  Offering Spanish translations for your payment interfaces and showing prices in GIP can elevate the user experience and increase conversion rates.

• Be transparent about additional fees and refund policies
  Customers appreciate transparency when it comes to fees they might encounter at checkout. The same is true for your return and refund policies. Clearly communicate these details before payment.

• Incorporate feedback loops
  Gather feedback from customers who have made purchases to reveal potential areas of improvement and make customers feel heard if they didn’t have an ideal experience.

Safeguard your payment systems

• Authenticate customers’ identities
  Use two-factor authentication and SCA to ensure that individuals who make payments aren’t using stolen credit or debit card details.

• Prioritize data protection
  Ensure your business complies with Gibraltar’s GDPR and the Data Protection Act 2004, and adhere to the Payment Card Industry Data Security Standard (PCI DSS) for additional payment security.

• Secure online transactions
  Deploy fraud detection tools such as machine learning solutions and 3D Secure authentication to spot fraudulent online payments before they happen and avoid financial losses.