Market Trends of Germany Mobile Payments Industry
This section covers the major market trends shaping the Germany Mobile Payments Market according to our research experts:
The growing digitalization level in the country is driving the Mobile Payments Market growth in Germany.
- Germany, a developed and technologically advanced economy, is moving forward with the digitalization process in its financing sector, creating an opportunity for the Mobile Payments Market growth in the region. Many investors are investing in the mobile payments market in the country. For example, Buy Now Pay Later (BNPL) is one of the fintech industry's key growth sectors. Berlin-based Mondu, which offers flexible payment options to businesses, has raised Euro 39.9 million in new capital and is planning to expand.
- Girocard is typically given to those who open bank accounts in Germany (sometimes called an Electronic Cash or EC card). The biggest drawback of the Girocard, the most widely used card payment in Germany, is that it cannot be used online. However, a new digital EC card is going to change everything. The integration of the Girocard as a second entry point to the online payment system Giropay is expected to begin in 2022, according to the German Banking Industry Committee. This shows the growth potential of the Mobile Payments Market in the country.
- In addition, the German neobank N26 based out of Berlin has developed an N26 insurance application to allow its customers to buy coverage, manage plans, and initiate claims for various insurances. The mobile bank has collaborated with Simplesurance to allow consumers to choose policies directly from the app, with the option to buy monthly plans with a flexible cancellation policy or annual covers.
- Companies in the country prioritize the security and compliance of Mobile Payment Services to increase trust across the country. For example, to allow users to register and authorize card payments via a banking app compliant with PSD2, Deutsche Kreditbank AG (DKB) has integrated a modernized 3-D Secure method for biometric payment approval created jointly with software company Netcetera.
- The rising demand for Mobile Payments services can be witnessed through various service development companies in the country. For example, With the introduction of Instant Bank Pay and Verified Mandates, GoCardless, a FinTech in direct bank payment solutions, has released two open banking features in Germany. This allows merchants to send a payment request with a link to pay or integrate the Instant Bank Pay option into their checkout process. Payers are effortlessly connected to their bank and can quickly authorize payment from their bank account, much like a mobile wallet payment.
The changes in customer behavior to go cashless and the growth of E-Commerce in the country are driving the Mobile Payments Market to grow in Germany.
- Beyond pricing, German buyers prefer to learn as much as possible about other comparable products, features, provenance, etc., before making a purchase. German customers are among the most demanding buyers in the world. Some customers are prepared to pay more for a product of better quality. Germany is Europe's largest e-commerce market, and the country has become the standard for online buying. This consumer behavior of the people is indirectly helping the Mobile Payments Market grow in the country because all the e-commerce sites accept payments through mobile applications.
- The growing M-Commerce market in the region in the country is directly enhancing the Mobile Payments Market in Germany. For example, Rezolve, a pioneer in mobile commerce and engagement, recently revealed that as its next step in revolutionizing mobile engagement by upending the established radio industry, it had acquired all the shares of ANY Lifestyle Marketing GmbH, the exclusive marketer for all commercial activities of Radio Group in Germany.
- Many global mobile payment companies are investing and expanding their presence in Germany, creating a huge opportunity for Mobile Payments Market growth in the country. For example, according to the US-based multinational financial services firm WU+, a combined app for mobile banking and international money transfers, has been launched in Germany. The global financial network of the Western Union Company connects more than 200 nations and territories and more than 130 currencies, enabling cross-border, cross-currency money transfers and payments.
- In addition, Markets like Europe have a broad variety of localized wallets and are highly developed. To deliver the services, Huawei Pay is collaborating with regional providers using a regional collaboration with Bluecode in Germany.
- Amazon has started acquiring local banking products. The business offers consumers a convenient digital option for paying by installments with this new and personalized service. With this new partnership, Barclaycard Germany can offer market financing in Germany in addition to its credit card and consumer credit businesses.