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Germany Real Time Payments Market Size (2024 - 2029)

The German real-time payments market is undergoing significant transformation, driven by regulatory reforms and technological advancements. This market is characterized by its focus on low-value retail payment systems, distinct from other payment systems like RTGS and distributed ledger systems. The introduction of real-time payments is expected to enhance access to banking services, support economic growth, and provide alternatives to traditional payment networks, thereby reducing cash and cheque usage. The COVID-19 pandemic has further accelerated this shift towards digital payments, with e-commerce gaining prominence. Despite the benefits, challenges such as the cost of new infrastructure, financial crimes, and cyber threats persist.

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Market Size of Germany Real Time Payments Industry

Germany Real-Time Payments Market Size
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 31.50 %
Market Concentration Medium

Major Players

Germany Real-Time Payments Market Key Players

*Disclaimer: Major Players sorted in no particular order

Germany Real Time Payments Market Analysis

The German real-time payments market is expected to register a CAGR of 31.5% during the forecast period (2022 - 2027). Real-time payments typically focus on low-value retail payment systems (RPS); they differ from real-time gross settlement systems (RTGS) and distributed ledger payment systems. In addition to meeting the demands and expectations, real-time payments have generated interest from the regulators, competition authorities, and payment service providers. Regulators believe that instant payments will expand access to banking services, support economic growth, provide alternatives to Visa/Mastercard networks and reduce the use of cash and cheques.

  • With the rise of new payment technologies developed by non-bank payment service providers (PSPs) and banks, businesses and consumers now have a wide range of payment instruments. With the rise of technological advancement, these facilities are reshaping the fintech world, leveraging the power of advanced API, AI, and mobile banking solutions.
  • Real-time payments are being touted as a game-changer for moving cash-loving Germans into digital payments. SCT Inst solves the negative cultural association of credit cards. As per the data by FSI Many smaller banks have opted to use payments via a technical service provider to deliver real-time payment mode transactional services and solutions for consumers. Real-time payments in Germany are expected to make up 37 percent of all retail payment transactions by 2027.
  • Germany has been experiencing a major transformation with the recent regulatory reforms in the Euro region. Many major players are trying to take advantage of the opportunity to establish themselves as a business and Fintech solution provider. For instance, the establishment of the Single Euro Payments Area (SEPA), Payment Services Directive (PSD2), and the establishment of the Euro Retail Payments Board (ERPB) have aided the growth of the market.
  • The COVID-19 pandemic has turned out to be a catalyst for digital transformation and thus an 'innovation accelerator' for the economy. The market has already been going through a major transformation, with participants shifting focus toward e-commerce to do more shopping online. Pandemic intensification and changes in regulation like lockdown and touchless payments benefitted the industry. Along came features like Insurance as an added service, particularly in buyer protection (e.g., as provided by PayPal and credit card providers). Cashback points for rewards and special offers appeal to some participants.
  • The real-time payment solution has easily given consumers and businesses the luxury of ready access to funds and the convenience of transferring them with a single button; however, there are also challenges related to the cost of adopting a new payment infrastructure, financial crimes related to payments, technological failure, and cyberattacks, which the industry has faced since its inception.

Germany Real Time Payments Industry Segmentation

The Germany Real-Time Payments Market is Segmented by Mode of Payment (Person-to-Person (P2P) and Person-to-Business (P2B)). Real-time payments are instant payments, faster payments and immediate payments. The real time payments allow immediate availability of funds to the beneficiary of the transaction and is irrevocable. The confirmation of the recipt of funds is instantaneous and the balance is immediately deducted from the sender.

By Type of Payment
P2P
P2B
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Germany Real Time Payments Market Size Summary

The German real-time payments market is undergoing significant transformation, driven by technological advancements and regulatory reforms. Real-time payments, which focus on low-value retail payment systems, are gaining traction as they offer alternatives to traditional payment networks like Visa and Mastercard, and help reduce cash and cheque usage. The market is experiencing increased interest from regulators and payment service providers, who see instant payments as a means to expand banking access and support economic growth. The COVID-19 pandemic has further accelerated this shift, prompting a surge in digital payments and e-commerce, as consumers and businesses seek quicker and more convenient transaction methods. The introduction of regulatory frameworks such as SEPA, PSD2, and the Euro Retail Payments Board has also facilitated market growth, encouraging the adoption of digital banking solutions and APIs.

As the market evolves, new players and technologies are reshaping the landscape, with companies like N26 and Fidor Bank leading the charge in providing real-time payment solutions. The proliferation of contactless payments and mobile banking apps has made it easier for consumers to embrace digital transactions. Despite the challenges of adopting new payment infrastructures and addressing security concerns, the market is poised for substantial growth. Partnerships and innovations in payment processing, such as those by ePay, Euronet Worldwide, and Western Union, are further driving the market forward. With a growing number of lenders and businesses adopting real-time payment systems, Germany is set to double its transaction volume, positioning itself as a leader in the European real-time payments space.

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Germany Real Time Payments Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Market Overview

    2. 1.2 Industry Attractiveness-Porter's Five Force Analysis

      1. 1.2.1 Bargaining Power of Suppliers

      2. 1.2.2 Bargaining Power of Buyers/Consumers

      3. 1.2.3 Threat of New Entrants

      4. 1.2.4 Threat of Substitute Products

      5. 1.2.5 Intensity of Competitive Rivalry

    3. 1.3 Evolution of the payments landscape in the country

    4. 1.4 Key market trends pertaining to the growth of cashless transaction in the country

    5. 1.5 Impact of COVID-19 on the payments market in the country

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Type of Payment

      1. 2.1.1 P2P

      2. 2.1.2 P2B

Germany Real Time Payments Market Size FAQs

The Germany Real Time Payments Market is projected to register a CAGR of 31.5% during the forecast period (2024-2029)

ACI Worldwide, Inc., Mastercard Inc., Finastra, Visa Inc. and PayPal Holdings, Inc. are the major companies operating in the Germany Real Time Payments Market.

Germany Real Time Payments Report Snapshots

Germany Real Time Payments Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)