August 24, 2016
Digital Payment Methods Slowly Gaining Favor in Germany
May 2, 2016
While the share of Germans using digital payment methods to transact online has inched up over the past four years, a solid majority of consumers in the world’s fifth-largest e-commerce market continue to prefer traditional payment methods, according to a report. The Bundesverband E-Commerce und Versandhandel (bevh), a trade association representing online and mail-order retailers in Germany, said 43 percent of German Internet users paid for online purchases in January of 2016 using digital payment methods PayPal, Sofort, ClickandBuy or giropay. Open invoice (29 percent) accounted for the bulk of the remainder (which the report lumps together as “traditional” methods). Credit card (9 percent), direct debit (8 percent) and prepayment (5 percent) are other traditional methods that are losing share slowly to the digital ones.
One surprising result was that younger consumers were no more likely to use digital payments online than older ones—in fact, by a small margin, the opposite was true. For adults aged 18 to 39, 42.4 percent reported using digital payment schemes, vs 42.8 percent of those 40 and older. Additionally, in previous years, digital payment methods were more commonly used by savers, but now, non-savers are just as likely to turn to them to transact online.