Payment Trends Unveiled in EHI Study
In Germany, the trend towards digital payments is gaining momentum, with a significant shift away from cash and towards card payments, debit and credit cards, and mobile and digital payment methods.
According to recent data, the physical card remains the dominant payment method, accounting for over 87% of cashless transactions. However, the share of cash payments has decreased by 1.7 percentage points compared to 2023, while card payments accounted for 63.5% of total sales in stationary retail in 2024, amounting to approximately 500 billion euros.
International debit cards from Visa and Mastercard could potentially increase their share to 6.9% by 2.8 percentage points, although no explicit figures were found. The overall shift to card and digital payments, coupled with the prevalence of debit cards, implies that international debit cards are likely increasingly accepted and used in Germany.
Debit cards are by far the most widespread payment cards in Germany, with around 143 million in circulation in 2023, compared to about 6.58 million credit cards. The pandemic has also seen a rise in credit card usage, aiding contactless payments.
Mobile and digital payment adoption is also on the rise, with 58% of Germans expressing a desire to manage their finances digitally via smartphones or computers. However, concerns about the decline in physical bank branches and personal contact remain.
Cash still accounted for 35% of point-of-sale (POS) transactions in Germany in 2024, down from about 55% in 2017. Cash withdrawals at retail checkouts (cash back) increased by roughly 20% last year, reaching 12.31 billion euros in volume, despite fewer ATMs.
Retailers are planning to introduce more payment methods like ApplePay and GooglePay in e-commerce, which could significantly increase their share of cashless transactions from 7.5% to 12.9%. In online purchases, PayPal holds a market share of 28.5%.
The 'Buy now, pay later' offers have doubled in the past three years, accounting for 4.3% of sales. Compliance with the requirements of the Barrier-Free Strengthening Act is a focus for retailers' investment in payment infrastructure.
Cash withdrawals at merchant cash registers via Girocard increased by ten percent in 2024, costing retailers a total of 19 million euros in fees. Wero, a payment service, is likely to try to establish itself in the long run in e-commerce.
Girocard remained the most popular payment method among card payments but lost a slight percentage point in overall payments. Of around 20 billion transactions in 2024, 54.6% were made in cash.
In summary, cash remains important but is losing ground to cards and mobile payments, with growing consumer preference for digital finance management. The cash back system at retail points is a notable exception showing cash usage growth in a particular form. This dynamic suggests a complex transition phase in Germany’s payment landscape.
Technology plays a significant role in the transition of Germany's payment landscape, with digital payment methods like mobile wallets (ApplePay and GooglePay) and Buy Now, Pay Later offers gaining traction in both e-commerce and brick-and-mortar retail. Finance, specifically digital finance management, is becoming increasingly preferred by consumers, with 58% of Germans expressing a desire to manage their finances digitally. TheEMV (Europay, Mastercard, and Visa) international debit cards could potentially increase their share as well, due to their growing acceptance and use in the country.
