Market Size of Germany Mobile Payments Industry
|2020 - 2029
|Base Year For Estimation
|Forecast Data Period
|2024 - 2029
|Historical Data Period
|2020 - 2022
*Disclaimer: Major Players sorted in no particular order
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Germany Mobile Payments Market Analysis
The Germany Mobile Payments Market is expected to grow with a CAGR of 12.32% during the forecast period (2022-2027). 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.