Mobile payments in Germany Currently valued at €32.4 billion, the mobile commerce market size is set to soar to 54.5 billion by 2023 as consumers adopt voice functionalities to make orders and social commerce influencers the younger demographics. Mobile transactions take up 33% of total eCommerce sales in Germany, with consumers increasing their mobile spending on lower-value, non-bulky items, compared to expensive electronics or home goods.
By 2020, PayPal was the most popular mobile payment method in Germany (57%). Google Pay (40%), Apple Pay (33%) and Payback Pay (23%) came in next, loosely followed by Barclays bPay (8%), Bitpay (6%) and Boon (5%).
Germany’s turbulent financial past is one of the primary reasons that the shift towards digital was moving at a much slower pace than in other Western European countries. With an unprecedented pandemic came an unprecedented switch to mobile payments, particularly from Germany’s retail sector which demanded card and contactless payments to help reduce the in-store risk of infection. Furthermore, digital media and online services such as food delivery, dating and fitness classes are popular amongst younger demographics.
Alternative online payments offered in Germany Alexander Berrai, Country Manager – Germany at emerchantpay, comments, “In the payment space, Germany is an extremely segmented market. Many payment methods are being used, and a wide range of options have to be offered to be ready to go to market.”
For non-German merchants entering the German-speaking market in Europe, he also notes that alternative payment methods (APMs) such as Sofort, SEPA Pay, Pay on invoice, and EPS are essential to understand to grow within the market. And these are on top of the previously mentioned APM’s in the Online payments landscape and Mobile commerce sections. Businesses must be on top of local payment preferences and work with a payment service provider who can share tailored, regional insights for optimal performance.
