E-wallets to become Germany’s favourite payment method as eCommerce market forecast to hit €104bn ($123bn) by 2021.
October 25, 2017
25th October 2017 – Berlin — E-wallets are expected to surpass bank transfers as Germans’ preferred eCommerce payment method by 2021, according to new data from leading payments company Worldpay.
In its annual Global Payments Report, Worldpay found that e-wallets such as PayPal, Apple Pay and Android Pay are set to inch past bank transfers, which are currently Germany’s favoured way of paying for goods and services online In the next five years the two most popular payment methods will be bank transfers and e-wallets, with 23 percent and 23.9 percent of the market respectively.
Worldpay found the use of cash on delivery for eCommerce is expected to grow by almost 50 per cent over the next five years to be worth 15% of the market, while debit cards’ proportion will almost double. Conversely credit cards are set to lose ground marginally over the next five years, falling from 14.1 per cent to 13.7 per cent of eCommerce.
In total, the German eCommerce market is set to grow by 11 per cent annually over the next five years, to be worth EUR€104BN (US$123bn) by 2021 – equal with France and sitting behind only the UK in Europe.
Commenting on the research, Rogier De Boer, VP of Business Development in EMEA at Worldpay said: “Germany is expected to see strong eCommerce growth over the next five years, comparing favourably with other European markets. With more than 83m consumers, 90 per cent of whom have Internet access, it is somewhat surprising that Germany is not Europe’s biggest eCommerce market.
“Our research shows that the German payments market is becoming much more diversified, with e-wallets and debit cards markedly increasing their share,” continued De Boer. “German consumers’ desire for security and convenience shows the importance of providing reliable, secure and easy-to-use payment methods to ensure that they capture the largest possible share of a strong and growing German eCommerce market.”
Worldpay has published a list of guidelines for merchants looking to capitalise on the global eCommerce and mCommerce opportunity:
- One-click ordering: Consumers are more likely to shop more often with companies that save their payment details for one-click ordering. Merchants should provide one-click ordering to make online checkout as seamless as possible - especially via mobile apps.
- Consider the most popular payments methods in each territory, and prioritise those that complement your business model - there is no one size fits all in Europe so you will need to understand the best options for your company.
- Cross-border trade: Merchants should ensure that they have local acquiring capabilities wherever they have a legal entity; offer a wide range of currencies at checkout; and consider local language customer support in their customers' time zone to deliver a great shopping experience.
About the 2017 Global Payments Report
This report was compiled using a mixture of primary and secondary data sources. Primary refers to our own surveys and commissioned research; whereas secondary refers to authoritative third-party vendor data, and other publicly available data. The report also draws upon Worldpay’s decades of experience in providing global eCommerce solutions. The eCommerce projected growth figures contained in this report were sourced from GlobalData’s E-Commerce Analytics database and relate to the eCommerce industry as a whole, not Worldpay’s business. GlobalData collected this data using consumer surveys, B2B surveys and desk research. Any indicative predictions based on the data we have used should be treated as such.
Worldpay is a leading payments company with global reach. We provide an extensive range of technology-led payment products and services to around 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world. Using our network and technology, we are able to process payments from geographies covering 99% of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types.
For more information, visit http://www.worldpay.com/global
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