Market Size of Germany Payments Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 12.32 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Germany Payments Market Analysis
The German payments market is expected to register a CAGR of 12.32% from 2022 to 2027. The primary factors driving the market's growth in the region are robust growth in E-commerce, increasing internet penetration, and rapid adoption of mobile payments, among others.
Germany is a cash-dominant country, but cash payments have been actively discouraged in Germany since the pandemic. Consequently, most establishments and stores have started accepting card payments, and Germans have begun to move toward digital payment solutions.
As such, digitization, coupled with the advent of the second Payment Services Directive (PSD2) and robust e-commerce growth, paved the way for developing many new payment options in the region. The emergence of Apple Pay, Google Pay, and mobile payment solutions from banks like Kwitt will likely fuel mobile growth.
Innovative digital payment solutions are making their way into the German payments market. Driven predominantly by the rising use of smartphones and the emergence of digital wallet payment options such as PayPal, it emerged as the newest number one trend for online payments in Germany.
Furthermore, more people are using electronic means for transactions. New card terminals, more accessible solutions for smaller merchants, cashless ticketing in transit, mobile payments, and contactless cards are all important. Government-led initiatives are also helping by recently implementing several legislative initiatives to strengthen the payment sector's resilience.
The Covid-19 outbreak has significantly accelerated the trend toward cashless payments in Germany. According to Bitkom, Germany's digital association, more than 70% of Germans would like to see more digital and contactless payment options. In-store payment behavior has also evolved at a pace during the outbreak. During the pandemic, Germany has seen a surge in (contactless) card-based and mobile payments. Merchants actively encouraged customers to pay by card, ideally contactless, instead of cash.
