An Overview of Germany’s Payment Landscape
Germany’s market position shows both opportunity and complexity:
Forrester research notes that “the European online payment landscape is highly fragmented” and you’ll see this fragmentation most clearly in Germany.
Invoice-based payments remain a significant component of e-commerce transactions in Germany, but they do not constitute the largest single share. This reflects cultural expectations around trust-before-transaction commerce.
Online payments increased over four-fold since 2019, now representing 36% of total payment value in 2024 compared to just 18% five years earlier.
How German Customers Pay Online
According to bevh (Germany’s e-commerce association) data:
- Purchase on Account/Invoice leads with 38.8%, reflecting a tradition known as “Kauf auf Rechnung” where customers verify product quality before committing financially. Without invoice payment, you lose access to nearly four in ten potential customers before they even consider buying.
- eWallets represent a leading payment tier in Germany. PayPal, Apple Pay and Google Pay are widely available and growing in popularity. Over 20% of German consumers are thought to have used digital wallets weekly in 2024.
- SEPA Direct Debit accounts for 17.4% of transactions.
Split Your Investment Between Desktop and Mobile for Maximum Conversion
Germany demonstrates a near-parity split between desktop (48%) and mobile (45%) e-commerce sales. Tablets and other devices account for the remaining 7%. This balanced distribution deviates significantly from global mobile-first trends.
The balanced device preference persists despite widespread mobile infrastructure and growing mobile payment volumes. The German mobile payments market reached approximately USD 20 billion in 2021, with strong growth projected through 2030.
High transaction values indicate substantial commerce flowing through mobile channels. Yet your customers frequently switch to desktop for final checkout.
In-Store Payment Preferences
Cash maintains a 51% share of all German transactions despite digital infrastructure readiness. This persistent cash culture influences online payment expectations. It creates preference for cash-adjacent digital methods like invoice payments and direct debit.
Payment Considerations for Businesses in Germany
Here’s how you can capture more payments in Germany.
Launch With The Top Four Methods
Missing any of the four most popular payment methods can cost you access to customers:
- Credit/Debit Cards
- Purchase on Account/Invoice
- PayPal
- SEPA Direct Debit
Invoice payment requires credit risk assessment capabilities, delayed settlement processing and integrated refund workflows that accommodate Germany’s high return rate. Research found 68% of German consumers place high value on easy, free returns. They prioritise “ease and speed of resolution above everything else.”
This creates “try before you commit” shopping behaviour. Your customers order multiple options assuming they will return most items.
Your payment infrastructure must treat returns as core functionality, not exception handling. This is particularly important for invoice payments where customers receive products before financial commitment.
SEPA Direct Debit integration provides access to consumers who prefer traditional bank-based payment mechanisms, which remain popular in the German e-commerce market.
Meet Localisation Requirements to Build Customer Trust
German language across all customer-facing content represents a legal requirement for consumer-facing e-commerce. This legal mandate extends beyond website content to encompass checkout flows, customer service interactions, return processes, error messages and payment processing communications.
You need to budget for translation including payment-specific terminology where precision matters. Invoice payment terms, direct debit authorisation language and refund policy communications require accurate German translation.
Your German customers must receive products with a legally mandated 14-day right of return. Make sure you clearly communicate this on your website. Your operational infrastructure must support robust return logistics from launch.
High return rates combined with the 14-day legal requirement create substantial reverse flow volumes.
Test Regional Variations to Optimise Payment Performance
You’ll discover that Germany exhibits payment method variations between Eastern and Western regions. Research maps “ecommerce activities, economic structural differences and regional framework conditions” across former geographic divisions, as documented by eCommerce News Europe.
Your localisation efforts must signal both value and trustworthiness rather than competing purely on price. Customer experience optimisation is your primary growth mechanism. Your payment method availability, transparent pricing and robust return processes directly impact this metric.