eCommerce: Preferred Payment Methods in Germany

Most Popular Online Payment Methods in Germany: Key Insights

• PayPal's Dominance: In 2022, PayPal maintains its top spot in Germany, widening the gap with competitors.

• Card Market Fluctuations: The setback faced by Mastercard and VISA indicates a fluctuating market where established card payments are facing challenges from alternative methods like bank transfers and digital wallets.

• Rise of Bank Transfers: Bank transfers and cash advances are growing at 77.2%, emerging as a competitor for card payment methods.

Trust is an important cornerstone in eCommerce. While there is a growing variety of online payment providers, people tend to trust those they know. But preferences can vary depending on the country. If you have an online shop, the choice of the right payment method is crucial to attract and retain customers.

Not every discharge process is equally trusted by customers: For instance, in the UK, payments with VISA and Mastercard cards are preferred, while in Czechia, cash on delivery is the most common method. But how about the German eCommerce market: Which offered payment method is the most popular in Germany? Let's see how the bill works out.

Most Popular Payment Methods in Germany: PayPal Leads the Ranking

2022 saw the digital wallet provider PayPal managing to maintain its top position, further solidifying its status as the most frequently offered payment method in Germany. In comparison, in 2020, the gap between the first (PayPal) and second place (Mastercard) was 1.6%, while in 2022, it grew to 11%.

The card payment methods Mastercard and VISA experienced setbacks compared to 2020, each witnessing a decline of almost 10%. This led Mastercard to fall to the third position with 82.1%, behind VISA with 82.2%. Meanwhile, bank transfer/cash in advance is growing at 77.2% and emerges as a growing competitor for card payment methods. Significantly further down the list is Sofort, standing at 53%.

Despite card payments experiencing losses, they maintain their second and third positions, while digital wallets remain a popular choice in the German eCommerce market. Still, the growth of bank transfer/cash in advance has potential to alter this landscape and surpass Mastercard as well as VISA.

Popular Payment Methods: Germany in Comparison to the UK

While in the UK, a trend towards digital wallets is noticeable with providers like PayPal and Apple Pay among the top 5, there is no clear trend in Germany. It is evident that the German eCommerce market offers a greater variety of payment systems, including card payments, eWallets, and bank transfers.

Meanwhile, three major players appear in both rankings — PayPal, Mastercard, and VISA — but all three perform differently than in Germany, despite the trend toward digital wallets. For more detailed information, check out our latest insight on the most popular payment methods in the United Kingdom.