In 2023, PayPal remained the top choice for German online shoppers, although its market share decreased slightly. The rise of buy now, pay later services is evident.
The ‘Online Payment 2024’ study by the renowned German retail institute EHI surveyed 148 online sellers, representing a substantial 43.8 billion euros in revenue. This figure holds significance in a market where total online retail spending in Germany last year was only 79.7 billion euros.
Top 3 Payment Methods
PayPal accounted for 27.7 percent of online purchases in 2023, down from 29.6 percent the year before. Despite slight declines, PayPal remains a popular choice among consumers. Temporary interruptions in payment acceptance have influenced the popularity of certain methods. Interestingly, buying on account, which was once the top payment method in 2021, is regaining momentum with a share increase from 23.8 percent to 26.7 percent.
Buying on account makes a comeback.
Bank transfer comes in third as a popular payment method, with 16.7 percent of online purchases in Germany paid using this method in 2023, compared to 20.9 percent in 2022.
Buy Now, Pay Later Trend
The latest data reveals a surge in installment buying among German consumers, with a 3.9 percent share, almost doubling from previous numbers. Buy now, pay later services are gaining traction in Germany, particularly among younger demographics. However, the German government’s move to tighten credit checks for online payments is causing concern for providers like Klarna.
