Berlin, 22nd November 2016 – New research by Worldpay has discovered that German consumers are shunning e-wallets as banks make it easier to pay for goods and services by direct bank transfer.
In its latest Global Payment Report, Worldpay found that German e-wallet use will halve in the next five years. In fact by 2020, only one in 10 online purchases will be bought using an e-wallet service, such as Apple Pay or Android Pay, down from an all-time high of 22% in 2015. Meanwhile German banks are looking to consolidate their dominance in online payments, with bank transfers set to account for 45% of all eCommerce transactions by 2020.
By establishing the alternative e-wallet Paydirekt in 2015, and more recently introducing SEPA payments, German banks have upset PayPal’s traditional hold on online purchases by providing their consumers with another simple way to pay.
Commenting on the findings, Ron Kalifa, Executive director at Worldpay said: “In spite of the impressive range of disruptive technologies and card options available, banks have done an excellent job of appealing to new customers and keeping up with modern payment trends. The success of bank transfers and e-wallets highlights German consumer’s desire for speed and convenience and the increasing need for international merchants to offer a range of payment options.”
Worldwide, the latest Global Payments Report suggests credit and debit card, and e-wallet use is set to flatten as more niche payment options such as bank transfers and instalments boom. In order to capitalise on the eCommerce opportunity, retailers will need to offer the right mix of payment methods, tailored to the needs of their target market.
Kalifa added: “The rise of bank transfers in Germany highlights the importance of tailoring your offering to local markets. This is particularly important with bank transfer schemes, which may have different authorization procedures to standard debit or credit cards. Companies wanting to take advantage of this rising trend should work with a payment provider who can enable them to accept the payment methods most relevant in each market, for consumers today and tomorrow.”
For more information from the Global Payments Report, and to download a copy, visit: http://worldpay.globalpaymentsreport.com/
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About the 2016 Global Payments Report
The 2016 Global Payments Report was compiled using a combination of Worldpay’s data and insights, external findings from Euromonitor, Datamonitor and ystats.com, and secondary data from more than 100 independent sources. The forward-looking statements and figures contained in the report are indicative predictions based on Worldpay’s own data and experience and should be treated as such.
Worldpay is a leading payments company with global reach. We provide an extensive range of technology-led payment products and services to over 400,000 customers, enabling their businesses to grow and prosper. We manage the increasing complexity of the payments landscape for our customers, allowing them to accept the widest range of payment types around the world.
Using our network and technology, we are able to process payments from geographies covering 99% of global GDP, across 146 countries and 126 currencies. We help our customers to accept more than 300 different payment types, by providing an end-to-end service including acquiring, treasury, gateway, alternative payments and risk management, all via a single integration to Worldpay. We make payments simple for many of the world’s leading organisations.
The information set out in this press release is for information purposes only and based on Worldpay’s research. Worldpay accepts no liability for the content of this press release, or for the consequences of any actions taken on the basis of the information provided.