Alternative payments landscape in Germany

If you live in Germany or have ever visited, you’ll know that – contrary to what you might expect – there are still many places that only accept cash, even in the capital. Germans are notorious for being heavy cash users. This has been changing lately, though, and the COVID pandemic probably had its share in it. In our latest case study, we’re looking at the dynamics of that change.

No wonder the main challenge for digital wallets entering the German market is the widespread conviction that cash is the best – and safest – payment method. A 2018 study reported that 88% of Germans are against abolishing cash payments, and in 2019, more than 67% of transactions were cash-based. This is not exactly a favourable environment for a movement towards a cashless society.

Having said all that, mobile commerce has managed to establish itself as a strong contender, accounting for 33% of online transactions, and only expected to grow. Fintech growth in Germany (and the region) is regulated by the European Union, a strong proponent of payment innovation and fintech regulation. Many of its initiatives focus on promoting digital and instant payment solutions and open banking, so we’re yet to see if they can overcome the country’s strong cultural preferences.

Download our case study to read more details about how the digital payments landscape is currently shaping in Germany:

  • Who are the big players in digital payments
  • What role direct carrier billing plays
  • What digital payment options match the specific expectations of the German consumer and why
  • What you need to know if you’re planning to include Germany as one of your target markets

Get the Whitepaper

This case study accompanies DOCOMO Digital’s latest research-based whitepaper on the evolution of alternative payment methods worldwide in 2021.

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