The Cards and Payments Industry in Germany: Emerging Trends and Opportunities to 2021
GlobalData’s "The Cards and Payments Industry in Germany: Emerging Trends and Opportunities to 2021" report provides top-level market analysis, information and insights into the German cards and payments industry, including -
- Current and forecast values for each market in the German cards and payments industry, including debit, credit and charge cards.
- Detailed insights into payment instruments including credit transfers, direct debits, cash transactions, checks and payment cards. It also, includes an overview of the country's key alternative payment instruments.
- E-commerce market analysis and payment methods.
- Analysis of various market drivers and regulations governing the German cards and payments industry.
- Detailed analysis of strategies adopted by banks and other institutions to market debit, credit and charge cards.
- Comprehensive analysis of consumer attitudes and buying preferences for cards.
- The competitive landscape in the German cards and payments industry.
This report provides detailed analysis of market trends in the German cards and payments industry. It provides values and volumes for a number of key performance indicators in the industry, including credit transfers, direct debits, check payments, payment cards and cash transactions during the review period (2012–2016).
The report also analyzes various payment card markets operating in the industry, and provides detailed information on the number of cards in circulation, and transaction values and volumes during the review period and over the forecast period (2017–2021). It also offers information on the country's competitive landscape, including the market shares of issuers and schemes.
The report brings together GlobalData’s research, modeling, and analysis expertise to allow banks and card issuers to identify segment dynamics and competitive advantages. The report also covers details of regulatory policy and recent changes in the regulatory structure.
To increase financial access to the under and unbanked populations, Bafin – the banking and financial services regulator – announced mandatory free basic accounts to all Germans as part of the new Payment Account Acts (Zahlungskontengesetz – ZKG) in 2016. Under the terms, basic accounts must be provided to all citizens including those with no permanent address, asylum seekers and those without a permit of residence. All accountholders will be offered basic functionality including a payment card, credit transfer facilities and the ability to pay direct debits.
To offer secured and convenient online payments, German Savings Banks Association (DSGV) launched its own online payment solution, Paydirekt in November 2015. It allows customers of participating banks to pay for online purchases directly from their checking accounts, thereby eliminating the need for any third-party payment processors.
The emergence of digital-banks is likely to accelerate the shift away from cash. Telecom service provider Telefónica Deutschland partnered with Fidor Bank to launch a mobile-only bank in July 2016. Customers using the O2 banking app can conduct transactions such as P2P transfers and apply for loans. Upon opening of the account, customers receive Mastercard debit card. Other mobile-only banks such as N26 and Fidor Bank are active in the German market.
- This report provides a comprehensive analysis of the German cards and payments industry.
- It provides current values for the German cards and payments industry for 2016, and forecast figures to 2021.
- It details the different demographic, economic, infrastructural and business drivers affecting the German cards and payments industry.
- It outlines the current regulatory framework in the industry.
- It details marketing strategies used by various banks and other institutions.
Reasons to buy
- Make strategic business decisions, using top-level historic and forecast market data, related to the German cards and payments industry and each market within it.
- Understand the key market trends and growth opportunities in the German cards and payments industry.
- Assess the competitive dynamics in the German cards and payments industry.
- Gain insights into marketing strategies used for various card types in Germany.
- Gain insights into key regulations governing the German cards and payments industry.
Table of Contents
1. EXECUTIVE SUMMARY 2
1.1. Market overview 2
1.2. Key facts 3
1.3. Top five industry events 4
2. PAYMENT INSTRUMENTS 11
2.1. Current payment environment 11
3. E-COMMERCE AND ALTERNATIVE PAYMENTS 13
3.1. E-commerce market analysis 13
3.2. Alternative payment solutions 15
3.2.1. ELV 15
3.2.2. Sofort 16
3.2.3. Giropay 16
3.2.4. PayPal 17
3.2.5. Paysafecard 17
3.2.6. RatePAY 17
3.2.7. Barzahlen 18
3.2.8. Alipay 18
3.2.9. boon 18
3.2.10. Seqr 18
3.2.11. Visa V.me 19
4. REGULATIONS IN THE CARDS AND PAYMENTS INDUSTRY 20
4.1. Regulatory framework 20
4.1.1. SEPA implementation 20
4.1.2. Implementation of the PSD 21
4.1.3. Interchange fee regulation 22
4.1.4. Anti-money laundering 22
4.2. Foreign direct investment (FDI) regulations 23
5. ANALYSIS OF CARDS AND PAYMENTS INDUSTRY DRIVERS 24
6. PAYMENT CARDS 27
7. DEBIT CARDS 29
7.1. Debit cards market analysis 29
7.2. Competition in the debit cards market 31
7.3. Debit cards comparison 33
8. PAY LATER CARDS 34
8.1. Pay later cards market analysis 34
8.2. Competition in the pay later cards market 36
8.3. Pay later cards comparison 37
9. PREPAID CARDS 39
10. MERCHANT ACQUIRING 41
11. APPENDIX 44
11.1. Abbreviations and acronyms 44
11.2. Supplementary data 45
12. DEFINITIONS 61
12.1. Common payment card features 62
12.2. Methodology 63
12.3. Bibliography 65
12.4. Further reading 65
List of Figures
Figure 1: Germany, Payment Instrument Shares by Transaction Value (%), 2012 vs 2016 11
Figure 2: Germany, Payment Instrument Shares by Transaction Volume (%), 2012 vs 2016 12
Figure 3: Germany, E-Commerce Value 13
Figure 4: Germany, Population and Economic Indicators 24
Figure 5: Germany, ATMs, POS Terminals and Household Consumption 25
Figure 6: Germany, Payment Cards Transaction Value and Cards in Circulation (%), 2012-2021 27
Figure 7: Germany, Debit Card Penetration and Turnover per Card, 2016 29
Figure 8: Germany, Debit Cards Scheme and Issuer Transaction Value Share (%), 2016 31
Figure 9: Germany, Pay Later Card Penetration and Turnover Per Card, 2016 34
Figure 10: Germany, Pay Later Cards Scheme and Issuer Transaction Value Share (%), 2016 36
Figure 11: Germany, Prepaid Cards in Circulation and Transaction Value, 2012-2021 39
Figure 12: Germany, Merchant Acquiring Transaction Volume and Value, 2012-2021 41
Figure 13: Germany, Acquirers’ Market Share in Terms of Transaction Volume and Value (%), 2016 43
Figure 14: Germany, Average Merchant Service Charge and Interchange Fee (%), 2012-2021 43
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.