Digital wallets and BNPL are becoming the first choice for consumers in Europe and the UK for car rental bookings.
CarTrawler, a B2B technology solutions provider for the car rental industry, has released its report Car Rental Market Monitor for the second quarter of 2025, which reveals significant changes in consumer behaviour in the European and UK markets.
While US users still predominantly use credit cards for bookings, European consumers are increasingly opting for digital wallets and options Buy now, pay later Buy Now, Pay Later.
The growing popularity of digital payments in Europe
In the EU, Apple Pay's share of transactions reached 4.51% in Q2, Klarna's 21%, while Google Pay grew to 0.41%. The United Kingdom is particularly noteworthy, where in June 2025, Apple Pay accounted for over 10% of all rent-a-car bookings.
These data confirm that consumers are increasingly seeking flexibility, fast processing, and digital convenience when making travel bookings. Brands and OTA platforms that follow this trend will have a clear advantage during the summer travel season.
Prices and demand: divergence between the US and Europe
Analysis shows that demand for rent-a-car services is growing in all markets, but with noticeable differences. The average price for a five-day rental in July 2025 was US$531 in the US (down 8.1% compared with 2024), while in Europe the average was €264 (+11% year-on-year).
Macroeconomic uncertainty and trade policies in the US have contributed to demand fluctuations, while Europe continues to experience stable growth, particularly in sun and sea destinations.
EV vehicles: stable growth and diversification of offerings
The report shows that electric vehicles (EVs) are becoming an increasingly important segment. In North America, EVs account for 51 per cent of all reservations, while in Europe their share is slightly lower – below 31 per cent.
Tesla remains the dominant choice in the US and Canada (59% of all EV and hybrid leases), while the European market is considerably more diverse. Brands such as Toyota, Kia, Polestar, Renault and Cupra are achieving double-digit shares, and the influx of Chinese manufacturers, such as BYD and XPENG, is expected to further change the structure of fleet offerings and lower prices.
