Market Trends of Germany Real Time Payments Industry
This section covers the major market trends shaping the Germany Real Time Payments Market according to our research experts:
P2B Segment Will hold The Major Share of the Market
- According to a report published by ACI Worldwide, a payment float is a deposit into a bank account that has not yet been cleared. With its current share of real-time adoption, German businesses and consumers will gain an estimated net efficiency saving of USD 313 million in 2021, driven by a reduction in the payment float. Instant payments unlocked a total transaction value of USD 4,823 million daily in 2021 through a reduced float time in Germany. This working capital facilitated an estimated USD 114 million of firm output in the same year.
- Recently in June 2022 EPC (European payment council) publishes the final version of the standardization of QR codes ( mobile-initiated ( SEPA) payment) involving the P2B mode of transaction addressing the need for a regulatory body for Instant credit transfer (SCT) payment and transfers, which seems to make real-time payment more secured in upcoming future. looking forward to these regulatory reforms Germany is expected to double its real-time payments volume by 2026.
- As per the study by Deutsche Bundesbank at the end of 2021, three out of four (73%)payments of the debit card in Germany were contactless using NFC Technology. In Germany, there are more than 100 million cards in circulation. The system is operated by the German banking sector and is independent of international credit card companies like Visa and Mastercard which is expected to favor Germany in real-time payment settlement in the near future.
- Real-time payment market has been experiencing tremendous changes with the introduction of new players which has been a key factor to drive the market for instant germany N26 bank one of the first organizations to provide real-time payment solutions in the region key to these sytems lies in the new digital banking application programming interfaces - APIs.
- Recently, Germany's savings banks introduced a new feature allowing customers to make a transaction as an instant payment. But it only works if the receiving bank also supports instant payments. With technological advancement and the adaptation rate of the real-time payment mode in the region, an increasing number of lenders in Germany have already joined the group of early adopters of the technology, which has been a key factor in driving the real-time payment market in Germany.
Understand The Key Trends Shaping This Market
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Ecommerce will be the Key to Drive The Market
- Germany's e-commerce business has proliferated since the pandemic, and sales have increased across the region during the coronavirus pandemic. For Instance, the report posted on eCommerce business 2021 by Postnord reflects approximately 94 % of the population is shopping online, which is 62.1 million consumers. The report also suggested that most B2C companies prefer real-time payment settlement with vendors like Paypal, Apple Pay, and Google pay in Germany.
- The recent survey from Postnord also reflects that Germany is at 4th position in countries where Europeans shop online (number of millions who shopped from each country (China, USA, and the UK). It's approximately 26 % of the total consumers in the European region. The study also suggested that the preferred payment gateway in the area be PayPal or a similar option at 50%, followed by invoices at 21%, debit or credit card at 17 %.
- As per the report (2021 European E-commerce Report) published, 96 % of the total population in Germany have access to the internet estimated growth rate of 1 %, and 88% of that internet user that bought goods or services online growth rate expected to be 2%from the previous year 2020.
- The global pandemic has changed the entire scenario of doing business; an increased need for immediate transactions and enhanced digital payment solutions across industries have become necessary. Contextual commerce is on the rise - allowing workers, merchants, customers, and suppliers to implement a quicker way to do business that fits into their 24/7/365 lifestyle.
- With the country's new technological reforms and regulations advancement, Germany has a heterogeneous market for real-time payment systems. The key reasons are the growing digitalization level, changes in customer behavior, and the advent of the PSD2 regulation by deploying technologies such as NFC or QR codes.
