Fintech & Ecommerce

German payment market faces historical changes

More payments will be made through card than cash in Germany this year

German payment market

German payment market faces historical changes. Source:

According to Euromonitor International, the total card payment transaction value in Germany is expected to rise by 28%, while cash transactions will drop by 34% by 2025.

As a response to the COVID-19 pandemic, German consumers showed an abrupt shift in payment behaviors, increasingly using card payments over physical cash for hygiene reasons. A growing number of them also started to use the contactless card function and smartphones for mobile payments for the first time
Ratna Sita, head of DACH research at Euromonitor International

This growing trust from consumers over their privacy around card usage also supports this trend.

Meanwhile, rising trust in security measures and assurances from issuers and merchants is strengthening the confidence as well.

Germans are set to become heavy payment card users by 2040, with an increase in their mobile device usage for payments.

We’ve reported that the UK’s spending in June started to grow, up 13% in May and by a further 11% in July to £598. That follows the dramatic fall in average spending on UK credit cards for January to May 2020 down 27% year on year.


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