Germany Country Report

Table of Contents

A comprehensive overview of the cards, payments and consumer banking market in Germany.

This Country Report provides detailed insight into the market's key players, including card networks, issuers, acquirers, banks and PSPs, plus the country's payments infrastructure, digital and mobile payments developments, demographic and consumer trends, regulatory drivers, credit card profitability and more.

Germany has long been differentiated from its near neighbours with regards to payments, whether seen in the relatively slow transition from cash dominance, the decentralisation of its banking sector or the presence of the Network Service Provider (NSP) in payment processing. This report explores key developments such as the new specialist issuers that have been fast developing a profitable revolving cards business in a historically conservative market.

Merchant acquiring too is in the midst of a transformation through an ongoing round of mergers and acquisitions: this report explores the complexities of the acquiring/processing market with comprehensive profiles of the leading players, supported by detailed market data.

With industry consolidation starting to affect Germany's fractured and regionalised banking industry, we look at the drivers, likely consequences and opportunities arising for newer digital players in this market.

This Verisk Financial Research Country Report is essential reading for anyone seeking to understand Germany's cards and payments market. Subscribers can log in to download their copy here.

What you will learn from this report:

• How revolving credit is becoming more of a feature
• Why debit cards are enjoying a new lease on life
• How the acquiring business is being transformed
• Which scheme has been gaining credit cards market share – and how
• How digitalisation is affecting the incumbents

Germany Cards and Payments Market Key Facts

• Germany has a unique retail banking model with local savings and cooperative banks often preferred to commercial banks for day-to-day banking.
• The country stands out among major developed economies for its cash preference. Recent trends however point to a shift in payments behaviour.
• The average German adult made just 74 card purchases in 2019, far below France (264), Britain (372) and Sweden (431).
• Growth in card use has been accelerating though with card spend for 2019 estimated to be 27 percent higher than in 2017.
• The rollout of contactless, combined with a less conservative younger generation, is key to the increasing popularity of cards.
• The cards market is dominated by domestic debit scheme Girocard, which has almost full coverage among consumers.
• Deferred debit cards, mostly branded as Visa or Mastercard, are preferred to traditional credit cards.
• Germans use a wide range of payment methods for online purchases: payment by invoice, e-wallet and direct debit are the most popular.