PayPal was the most used online payment method among German online shoppers in 2023, like the year before. However, the American company saw its share of the local payment market decrease. Buy now, pay later services are on the rise.
This is according to the ‘Online Payment 2024’ study conducted by the German retail institute EHI, in which 148 online sellers participated earlier this year. Together, they represent 43.8 billion euros in revenue. This constitutes a significant portion, as total online retail spending in Germany last year did not exceed 79.7 billion euros, a low point.
Top 3
In 2023, 27.7 percent of online consumer purchases in Germany were paid for by using PayPal. However, the previous year’s share was 29.6 percent. The popularity of PayPal, despite the introduction of passkeys, is somewhat declining. EHI notes that temporary interruptions in acceptance have played a role in the popularity of some payment methods. Buying on account, which was the most used online payment method in Germany in 2021, is making a comeback: its share increased from 23.8 percent to 26.7 percent.
Buying on account makes a comeback.
Bank transfer follows at a distance as the third most popular payment method for e-commerce in Germany: one in six purchases were paid for this way last year (16.7 percent), compared to over a fifth of purchases in 2022 (20.9 percent).
Buy now, pay later
The figures show that buying on installment has gained popularity among German consumers. Its share reached 3.9 percent, almost doubling. Buy now, pay later (BNPL) is experiencing significant growth in Germany, especially among young consumers. Meanwhile, the federal German government intends to tighten creditworthiness checks for online payments, alarming Klarna and similar payment service providers.
