At the café, the waiter sets the bica (espresso) on the counter, you hold out your card, and the man next to you simply brings his phone up to a small QR code stuck by the till. On the way out, a friend pays you back for lunch in ten seconds using nothing but your mobile number. Welcome to Portugal, land of MB Way, the app almost everyone here has in their pocket, and of Multibanco, the cash machine network that does far more than hand out notes.
Paying in Portugal is not complicated. But three local habits make daily life much easier: the payment reference, MB Way and the right cash machines.
What is Multibanco, and how much does a withdrawal cost?
In Portugal, people say "o Multibanco" to mean the cash machine, but it is first and foremost a network, run by SIBS, with more than 12,000 cash machines across the country. On screen, there are more than 90 operations: withdrawals, deposits, transfers, balance checks, top-ups and, above all, bill payments.
Withdrawals are capped at €400 a day on the network. With a card issued by a Portuguese bank, they are free at Multibanco and ATM Express machines. With a foreign card, the network's FAQ warns that fees may apply; the amount is shown at the time of the withdrawal, and your own bank may add its commission.
In tourist areas, you will also see cash machines from other networks, in different colours, often installed near bars and souvenir shops. They work, but withdrawal fees with a foreign card are often higher there. To take out cash, look for the Multibanco logo on a bank's façade instead.
If your card is in a currency other than the euro, Swiss francs for example, there is one more habit to adopt: when the screen offers to convert the amount into your currency, decline and choose euros. The conversion offered by the machine is rarely the best deal.
How do you pay with a Multibanco reference?
This is the great Portuguese speciality, and it baffles every newcomer. Electricity, water or internet bills, online purchases, signing up for an activity: very often, you are not given an IBAN but three lines.
- Entidade: the entity, a 5-digit code that identifies the company;
- Referência: the reference, a 9-digit code specific to this payment;
- Montante: the amount.
You enter these three details at the cash machine, under the payment of services menu, or in your Portuguese bank's app, which almost always offers this option. Two precautions, pointed out by the network itself: a reference has a deadline, and an expired reference is refused; a mistake in the entity or the reference also leads to a refusal. Nothing is lost: just ask for a new reference.
And before you have a Portuguese bank? Paying for services at the cash machine works with cards whose issuer has authorised the operation: with a foreign card, it sometimes works, sometimes not. For the first few weeks, keep a fallback, such as paying online by card when the company offers it.
This system is also used for some payments to public bodies and, if your car is registered in Portugal, for paying electronic tolls after the fact. Our guide to driving in Portugal explains everything.
How does MB Way work in Portugal?
MB Way is the payment app of SIBS, the same operator as Multibanco. Its website claims more than 6.5 million Portuguese users, and it shows: for many people, it has become second nature.
What it lets you do:
- pay in shops, by scanning a QR code or contactless;
- pay online with just your phone number, then confirm in the app;
- send and request money from a contact, and split a bill;
- withdraw cash without a card, with a code generated in the app;
- create virtual cards (MB NET) for online purchases, without giving your real card to the merchant's website;
- manage authorised payments, for subscriptions, with a monthly ceiling you set.
You sign up from the app or directly at a Multibanco machine, with a 6-digit PIN and then a code received by text message. Downloading and using the app is free, according to MB Way.
Can you use MB Way in Portugal with a foreign bank?
Everyone asks, and the answer is disappointing: as a rule, no. To sign up, MB Way requires a card from a Portuguese bank that takes part in the service. A card from a bank in France, Belgium, Switzerland or anywhere else outside Portugal is not enough, even if it works everywhere else.
The phone number, on the other hand, can be foreign: the MB Way FAQ confirms that you can sign up with an international number, provided it is linked to a Portuguese card. Using MB Way in Portugal therefore almost always means opening an account locally, which itself requires a NIF. Our guide to opening a bank account in Portugal explains how.
Are MB Way transfers free?
For everyday use, yes. Lei n.º 53/2020, amended in 2024, bars banks from charging for transfers made through a payment app as long as you stay under three ceilings:
- €30 per transfer;
- €150 transferred in a month;
- 25 transfers a month.
Above that, your bank may charge a fee, but it is capped: 0.2% of the amount with a debit card or an instant transfer, 0.3% with a credit card. The app shows any fees before you confirm the transfer. As for amounts, MB Way limits transfers by default to €2,000 per transfer; above that, you need to activate an optional identity check.
In practice, paying back a dinner or chipping in for a present will cost you nothing. Paying your rent by MB Way, on the other hand, is not a good idea: use a bank transfer, which leaves a clearer trail.
A final word of caution, because MB Way also attracts scammers, especially on classified ad sites. The typical scenario: a very hurried "buyer" asks you to go to the cash machine or enter a code to "receive" their payment. To receive money on MB Way, you have nothing to do and nothing to confirm. Never give out your PIN or the codes you receive by text, and never link a phone number that is not yours at the cash machine.
Does your foreign card work everywhere?
Almost. Paying by card in Portugal has become routine, and Visa and Mastercard cards are accepted in supermarkets, restaurants, petrol stations and on public transport. Contactless payment is common, including by phone.
There are still exceptions, mostly in small shops: a neighbourhood tasca (tavern), a fruit seller at the market, a newspaper kiosk. Some have no card terminal, others ask for a minimum amount for cards. Always carry a few coins and a note.
At the till, you will often be asked "Contribuinte?": they are offering to add your NIF, your tax number, to the invoice, so that it is recorded with the Finanças; our article on supermarkets in Portugal explains why that is useful. And if you do not have a tax number yet, our guide to getting your NIF in Portugal tells you how.
Do you still need cash in Portugal?
A little, yes. Cash is still used at the corner café, at the Saturday market, for a tip or at the cobbler's. No need to carry much: a few tens of euros are enough for the week.
For large sums, the law is strict. Article 63.º-E of the Lei Geral Tributária (the general tax law) bans paying or receiving in cash any sum of €3,000 or more, whatever the transaction. The threshold rises to €10,000 for non-resident individuals who are not acting in a business capacity, and a payment split into instalments counts as a single one. Taxes over €500 cannot be paid in cash.
For a second-hand car, furniture bought from a private seller or a rental deposit, the right reflex is a bank transfer, or MB Way for small amounts. After a few weeks, you will catch yourself holding your phone up to the café's QR code, just like the man next to you at the counter.