Market Trends of Germany Payments Industry
This section covers the major market trends shaping the Germany Payments Market according to our research experts:
High Proliferation of E-commerce and Rising Adoption of M-commerce is Expected to Drive the Payments Market
E-commerce in the region is proliferating at a high rate owing to the increasing number of online shoppers over the past few years. For instance, as per EUROSTAT, the proportion of individuals aged between 16 to 74 in the European Union who ordered or brought goods and services over the internet was 51% in 2016, which grew to 66% in 2021.
Many online stores and E-commerce platforms in Germany accept credit cards and PayPal as payment methods. Many E-commerce websites also accept invoices, buy now and pay later. With so many advantages, E-commerce companies offer easy payment checkout solutions. The E-commerce market is further expected to grow over the forecast period.
Furthermore, the adoption of mobile commerce is on the rise because many market players in the region have developed dedicated apps. Many applications allow connecting consumers with a credit card, which drives the market's growth. As per the E-commerce association BEVH, the mobile commerce revenue in Germany made up around 40% of e-commerce goods sales in 2021.
Furthermore, payment methods are continuously evolving in the region. As reported by PostNord, 50% of Germans made payments through PayPal or similar options for online purchasing, followed by invoices and debit or credit cards by 21% and 17%, respectively.
Retail Sector to Drive the Payments Market
The retail industry is one of the top three industries in Germany. As a result, the retail sector continues to represent a wealth of opportunities for new business, trading and investing. The payment market in Germany is developing with the changing customer behavior. Trends such as mobile payments, internet banking, instant payments, and the Government's growth initiatives are affecting the payment market in the country.
Further, Germans spend a significant share of money on categories that include food, beverages, tobacco, clothing, footwear, cosmetics, body care products, furniture, appliances for the household, and leisure items such as watches and accessories. Furthermore, various payment checkout solutions offered by top retail market players in the region are further accelerating the growth of the retail sector.
As per The German Retail Association (HDE) and the Federal Statistical Office of Germany, the retail sales revenue has continuously risen over the past few years. As per data, the retail sales revenue grew from EUR 526.8 billion in 2018 to EUR 586.1 billion in 2021.
This continuous rise in the retail sector provides various opportunities to payments providers in the region to enhance their payment platforms and apps to cater to the increasing demand. Furthermore, the rising adoption of digital wallets and contactless payments by cards is further providing lucrative opportunities for payment providers in the region.
