When shopping online, the German consumer prefers to pay with PayPal. More than half of the respondents (57%) in a survey said this payment method is their favourite when buying an online order.
Despite this preference for PayPal, it is wise for sellers in Germany to not only offer PayPal. The German consumer likes to have a choice when shopping online. Based on their choice, they opt for their preferred payment method. This can be concluded from a survey by the Institute for Banking Innovation (IBI) at the University of Regensburg amongst 1,011 online shoppers from Germany. The survey focused on their preferences, experiences and behaviour when paying online.
72% has a preference
Results from the study indicate that 72% of the German online shoppers have a preferred payment method over others. 11% of respondents even say they will not complete an online purchase if they would be unable to use their preferred payment method. An alternative would not be an option. Among consumers with a favourite payment method, PayPal is the most preferred (57%). It is followed by paying by invoice (22%), credit card (11%) and direct debit (5%).
As preferences for payment methods differ, it is wise to offer multiple payment methods in the German market. With offering only one payment method, retailers reach a maximum of six out of ten customers, the study states. Therefore, merchants who offer more payment methods can reduce the number of purchase cancellations. The study concludes that, with the following six payment methods – PayPal, invoice, credit card, direct debit, instant transfer and prepayment -, ensures a dropout rate of only 3%.