Germany Mobile Payments Market Size (2024 - 2029)

The Germany mobile payments market is experiencing growth driven by changing consumer preferences and advancements in service innovation, leading to a gradual shift from cash and digital channels to mobile payments. Despite a historical preference for cash, the market is expanding as digitalization and the convenience of mobile payments gain traction, supported by international players entering the market. The COVID-19 pandemic has further accelerated the move towards cashless transactions, presenting significant opportunities for the mobile payments sector. However, concerns over security and the traditional loyalty to cash pose challenges to the market's expansion.

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Market Size of Germany Mobile Payments Industry

Germany Mobile Payments Market Forecast
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR (2024 - 2029) 12.32 %
Market Concentration Low

Major Players

Germany Mobile Payments Market Major Players

*Disclaimer: Major Players sorted in no particular order

Germany Mobile Payments Market Analysis

The Germany Mobile Payments Market is expected to register a CAGR of 12.32% during the forecast period.

Germany has seen a moderate but steady increase in mobile payment services. Both cash and digital channels are losing market share to mobile payment. The country's mobile payment business is expanding because of shifting consumer preferences and service advancements prioritizing innovation.

  • All industries in the country are being dominated by digitalization among mobile users, particularly financial transactions, which have spread to the banking sector. Mobile payments in Germany have not taken off as quickly as mobile banks, which have been at the forefront of innovation. When it comes to everyday buying, Germans have historically demonstrated a strong loyalty to cash. All the international players are now launching their mobile payment systems in Germany, unlike before, when only the two market leaders in mobile payments, Google Pay and Apple Pay, did so. For instance, Samsung Pay or Samsung Pass customers in Germany can open those apps from their compatible Galaxy devices and follow the prompt to update and migrate to Samsung Wallet, or they can go to the Galaxy Store to learn more.
  • Because it is more convenient for businesses and customers, the mobile payments market in the nation is expanding. Reward programs and bill splitting options are typically available with mobile payments, making the transactions more profitable for the customers. The companies can do tailored marketing, a more efficient and economical marketing technique through mobile payment applications. For example, In Germany, PayPal is extending its "Pay later" option. The company has introduced a new payment option called "Payment after 30 days." For purchases up to 1.000 euros, customers can choose the new opportunity and pay for it without incurring any further fees after 30 days.
  • In addition, to facilitate mobile payment at the gas pump directly in service stations in Germany, PayPal has partnered with PACE Telematics. Customers can now pay with their Apple Watch or Android wristwatch in addition to their cell phones, making this the first time in Europe that this is possible.
  • Germans strongly emphasize the safety and security of mobile banking and prefer the cash mode of the payment process. This poses a significant challenge for the country's market and lowers the market's growth rate. Providers have made mobile banking the most secure method of accessing the bank through various security features such as ID protection (fingerprint or voice/face recognition), high encryption, and OTP verification code.
  • The COVID-19 pandemic has impacted the country's economy, businesses, and people, but it has created an incredible opportunity for the mobile payments market in Germany. Companies and customers are increasingly favoring cashless purchases because of the threat of COVID-19 spreading. This trend which was predominant during the pandemic is increasing after the pandemic also, and the country is transforming towards more cashless payments through mobiles.

Germany Mobile Payments Industry Segmentation

Any electronic payment that uses mobile phones or tablets to initiate, authorize, and confirm an exchange of money in exchange for goods and services is called mobile payment. With the aid of mobile applications, mobile payment technologies can also be used to send or receive money.

Germany Mobile Payments Market is Segmented by Payment Type (Proximity Payment and Remote Payment).

By Type (Market share in percentage based on relative adoption)
Proximity
Remote
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Germany Mobile Payments Market Size Summary

The mobile payments market in Germany is experiencing a steady growth trajectory, driven by the increasing digitalization of financial transactions and shifting consumer preferences towards cashless solutions. Despite a historical preference for cash, the convenience and innovation offered by mobile payment services are gradually gaining traction. The market is becoming more competitive with the entry of international players like Samsung Pay, alongside established leaders such as Google Pay and Apple Pay. The integration of mobile payments with reward programs and tailored marketing strategies is enhancing their appeal to both businesses and consumers. The COVID-19 pandemic has further accelerated this trend, as the demand for contactless payment options surged, a shift that continues to influence consumer behavior post-pandemic.

Germany's mobile payments landscape is characterized by a fragmented market with numerous competitors, including fintech companies and global financial service providers. The country's advanced technological infrastructure and strong emphasis on security and compliance are fostering trust in mobile payment solutions. Innovations such as the digital EC card and partnerships for direct mobile payments at service stations are indicative of the market's growth potential. Additionally, the rise of M-Commerce and the expansion of services like PayPal's "Pay later" option are contributing to the market's development. As Germany continues to embrace digital payment solutions, the mobile payments market is poised for significant expansion, supported by ongoing investments and strategic collaborations.

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Germany Mobile Payments Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

      1. 1.1.1 The growing digitalisation level in the country

      2. 1.1.2 The changes in customer behavior especially in the younger population to go cashless and the growth of E-Commerce in the country

    2. 1.2 Market Challenges

      1. 1.2.1 Privacy and security concerns of payments through Mobile

    3. 1.3 Market Opportunities

      1. 1.3.1 Mobile Payments are getting more accepted and convenient way of payments

    4. 1.4 Key Regulations and Standards in the Mobile Payments Industry

    5. 1.5 Analysis of Business Models in the Industry

    6. 1.6 Analysis of the Increasing Market Penetration of Mobile Wallets in Germany

    7. 1.7 Analysis on Enabling Technologies (Coverage to include NFC, QR, etc.)

    8. 1.8 Commentary on the growth of Mobile Commerce and its influence on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type (Market share in percentage based on relative adoption)

      1. 2.1.1 Proximity

      2. 2.1.2 Remote

Germany Mobile Payments Market Size FAQs

The Germany Mobile Payments Market is projected to register a CAGR of 12.32% during the forecast period (2024-2029)

Google LLC, Amazon.com, Inc, Samsung Pay, Apple Pay and PayPal Holdings, Inc. are the major companies operating in the Germany Mobile Payments Market.

Germany Mobile Payments Market Report Snapshots

Germany Mobile Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)