Germany remains Europe’s largest e-commerce market, projected to reach approximately €116 billion by 2025. This is why we want to review the current e-commerce payment methods for Germany today.

German shoppers expect flexibility, trust, and familiarity when making online payments, making it essential for merchants to offer a broad range of payment methods to reduce cart abandonment and increase conversions.

According to EHI Retail Institute and Statista data from 2023–24, the most commonly used payment methods in Germany are:

• PayPal (~28 %)
  
• Invoice / Purchase on Account (~27–44 %)
  
• Direct Debit (SEPA) (~17–23 %)
  
• Credit & Debit Cards (~11–28 %)
  
• Digital wallets and BNPL services like Klarna (~28 %)
  

Leading Payment Methods in German E-Commerce

PayPal and Digital Wallets

PayPal is the leading online payment method in Germany due to its convenience, strong buyer protection, and wide acceptance. In 2025, PayPal introduced tap-to-pay for iPhone users in Germany, enhancing the in-store experience with contactless payments via NFC terminals.

Mobile wallets, including Apple Pay and Google Pay, are gaining traction, particularly among younger consumers. Trends in 2025 emphasize frictionless checkout, tokenization, and secure authentication, making digital wallets a key part of modern payment infrastructure.

Invoice / Purchase on Account

German consumers have a strong preference for buying now and paying later via invoice, which remains one of the most trusted and frequently used methods. The buyer receives the goods first and pays within a fixed time window.

While this method builds trust and improves conversion rates, it exposes merchants to credit risk and administrative overhead. Many businesses mitigate this by using third-party providers to manage invoicing, credit checks, and collections.

Direct Debit (SEPA Lastschrift)

SEPA direct debit enables merchants to automatically withdraw funds from a customer's bank account once authorization is given. It’s a cost-effective option for businesses and remains popular among older consumers.

Although highly efficient, SEPA direct debit carries the risk of failed transactions due to insufficient funds or revoked mandates. Nonetheless, it remains a preferred recurring payment method for subscriptions and memberships.

Credit and Debit Cards

Card payments (including Visa, Mastercard, etc.) account for between 11% and 28% of online payments, depending on the data source. Cards offer speed, security, and international acceptance, making them essential for cross-border transactions.

Despite their benefits, German consumers have historically been less reliant on credit cards compared to other markets. Debit cards are more common, and the rise of Girocard and Maestro adds complexity to the card landscape.

SEPA Bank Transfer, Girocard, and Paydirekt

Bank-based methods such as SEPA transfers, Girocard, and Paydirekt play a more minor but still important role. These services offer secure transactions linked directly to bank accounts and are often used by security-conscious shoppers.

Paydirekt, a service backed by German banks, continues to evolve by combining features of Giropay and Girocard. However, their limited international use and lower consumer familiarity can restrict their wider adoption.

Klarna and Buy Now, Pay Later (BNPL)

Klarna, one of Germany’s most popular BNPL providers, offers installment payments and delayed invoicing options. BNPL services have surged in popularity, particularly among younger shoppers who value flexibility.

While Klarna and similar services overlap with invoice-based models, they enhance the experience with smoother checkout, instant approval, and mobile-first design. Merchants must evaluate BNPL partners carefully due to fees, risk sharing, and integration demands.

Wero and the European Payments Initiative (EPI)

Wero is the new European wallet launched by the European Payments Initiative (EPI). Initially rolled out in 2024 for peer-to-peer payments in Germany, France, and Belgium, Wero will enable online and mobile commerce payments in Germany from summer 2025.

Key Features of Wero

• QR-based checkout
  
• Installment payments
  
• Integrated loyalty and identity management
  
• Data sovereignty within the EU
  

EPI partners include major banks and payment service providers such as Nexi, Worldline, Unzer, Nuvei, and Revolut. Merchants should monitor Wero’s adoption and consider early integration for a competitive advantage.

Strategic Considerations for Merchants

Payment Mix and Cart Abandonment

Offering the correct payment methods is critical for conversion. Up to 82 % of German shoppers abandon purchases if their preferred payment method is unavailable. A diverse offering that includes PayPal, invoice, direct debit, card, and a local method like Wero ensures better coverage across demographic segments.

Mobile Optimization

With increasing smartphone penetration and mobile-first consumer behavior, payment methods must support fast, secure, and mobile-friendly experiences. Features like biometric authentication, NFC contactless pay, and one-click checkout are now standard expectations.

Adapting to European Regulation and Innovation

Merchants operating in Germany should closely monitor developments such as PSD3, EPI, and the evolving Strong Customer Authentication (SCA) rules. The emergence of European-native payment infrastructure, such as Wero, is a signal to reduce dependency on U.S.-based platforms and align with EU data and payment sovereignty goals.

Summary Table: E-Commerce Payment Methods in Germany 2025

Consumer trust, mobile-first preferences, and growing demand for European alternatives shape Germany’s e-commerce payment ecosystem in 2025. PayPal remains dominant, while invoice-based payments and SEPA direct debit continue to hold strong positions.

At the same time, Klarna’s BNPL model and the rollout of Wero signal the shift toward digitally native, flexible, and sovereign payment solutions. Merchants that offer a tailored mix of traditional and modern payment options will be best positioned to succeed in the competitive German e-commerce market.

The post E-Commerce Payment Landscape in Germany 2025 appeared first on Cross-Border Magazine.

Morgan Stanley-backed payments company Sokin has acquired Norwegian fintech company Settle Group AS (Settle) to enhance its technology capabilities and offers, including its flagship product, Sokin Pay. The purchase comes months after Sokin received $31 million from Morgan Stanley Expansion Capital.

Sokin CEO and founder Vroon Modgill highlighted the acquisition's strategic importance: "The acquisition of Settle is a turning point for Sokin, as it will allow us to unlock new technology capabilities and expand our presence in key markets. It is a fascinating time for us as a company. We anticipate this will be the first in a series of acquisitions following a recent investment that has accelerated our growth. We aim to deliver market-leading value, an unrivaled proposition, and become the trusted partner for businesses on the global stage."

Settle aims to be a global payment solution

Settle, a payments solution launched in 2010, is an app-based platform that enables consumers and businesses to send and receive money instantly, domestically and internationally. Available in all European Union countries, Settle is positioned as an agile and efficient tool for managing transactions.

Through the acquisition, Sokin gains access to Settle's European EMI license. This license will strengthen their market presence and open up new regional growth opportunities.

Founded in 2019, Sokin offers a platform that enables global businesses to transfer, hold, and exchange over 100 currencies through multi-currency IBANs and local currency accounts. It currently operates at a transaction rate of more than $4.5 billion annually, and its representatives say they anticipate further growth. Sokin integrates with companies in a wide range of verticals, from transportation and logistics to Premier League soccer clubs.

The post Sokin bought the Norwegian fintech Settle appeared first on Cross-Border Magazine.

During a keynote presentation at the Global Fintech Fest in Mumbai, Mastercard announced the global launch and first massive test of its new Payment Passkey service, which aims to make online shopping safer and more accessible than ever before. 

The service, which will debut first in India as a pilot with some of the country's largest payment players, including payment aggregators such as Juspay, Razorpay, and PayU, online merchants such as Bigbasket, and leading banks such as Axis Bank, will give millions of consumers more control and peace of mind when shopping online.  

Despite their growing popularity due to their ease of use, one-time passwords (OTPs) are increasingly vulnerable to online scams such as phishing, SIM card swapping, and message interception. In India, fraud cases have increased by almost 300% in the last two years, reports the Reserve Bank of India's Annual Report 2023-2024.

Payment passcodes are entering the scene. These use device-based biometric authentication methods, such as fingerprints or facial scans, but with an entirely new purpose: streamlining online shopping experiences. By replacing traditional passwords and OTPs, the Mastercard Payment Passkey Service makes transactions not only faster but also more secure against fraud and scams. With Payment Passkeys, consumers can say goodbye to the hassle of accidentally forgetting or sharing their passwords or OTPs.  

What is Mastercard Payment Passkey?

The Mastercard Payment Passkey service uses tokenization to protect a consumer's payment and biometric data, ensuring that data is not shared with third parties and is useless to fraudsters and scammers. 

The service is a tipping point for online payment:  

1. Shoppers choose their Mastercard when checking out as a guest or select a card that is already securely stored in a merchant's files.  

2. To confirm payment, users can use the features of their device's biometric authentication mechanism, such as a fingerprint, facial scan, or PIN. 

3. Once authentication is successful, the payment is completed instantly.  

“By introducing the Mastercard Payment Passkey service in India, we are driving secure online payment and our vision of a tokenized economy,” said Jorn Lambert, chief product officer of Mastercard. "We create a more transparent commerce ecosystem through innovative technology that enhances security and convenience. As we continue to lead the way in digital payments, our commitment to a tokenized future is stronger than ever."  

With its rapidly expanding payments ecosystem and advanced tokenization market, India is adopting payment access keys and enhanced biometric authentication in line with the Reserve Bank of India's goal of a more secure and resilient payments system. Payment passcodes provide speed, convenience, and security, and enhance the user's shopping experience. For businesses, it means fewer abandoned carts and less fraud. For consumers, it means faster payments and peace of mind. 

The Mastercard Payment Passkey service is designed for online or remote tokenized transactions, which today help significantly reduce fraud and increase approval rates. Combining tokenization of payment credentials with seamless biometric authentication, Mastercard combines industry standards from EMVCo, the World Wide Web Consortium, and the FIDO Alliance to accelerate and secure the payment experience. 

Following the initial pilot program in India, the company will roll out the Mastercard Payment Passkey service to more consumers and financial institutions worldwide in the coming months.  

“We are excited to partner with Mastercard to pilot their Payment Passkey service as an alternative transaction authentication method and offer our customers a non-OTP based solution for transaction management,” said Sanjeev Moghe, president and head of Cards and Payments at Axis Bank. “This will enable us to offer a more engaging in-app and user experience for customers who want enhanced security and hassle-free payments.”

The post Mastercard launches its new Payment Passkey in India appeared first on Cross-Border Magazine.

The Revolut banking group's revenue increased 95% to over €2 billion, up from over €1 billion in 2022. Pre-tax profit reached €503 million, and net profit grew to over €395 million, up from €7 million in 2022. 

As they detail in a statement, the net profit margin for the year was 19%, reflecting the inherent efficiency and scalability of Revolut's business model, improved partner unit costs, and continued growth in high-margin revenue streams. For its part, Revolut's revenue diversification continued to drive sustainable growth, with no single product stream or country accounting for more than 30% of total revenue in 2023.

During the year, Revolut added nearly 12 million new customers globally, the largest year-on-year increase in the company's history. This brought the total to 38 million in 2023.

Specifically, 70% of new customers joined organically or were referred by someone they know. This word-of-mouth growth was complemented by increased investment in marketing and sales functions, including Revolut Business, whose year-end growth rate was 20,000 SMEs onboarded per month. They stress that this growth was consistent across all revenue streams of Revolut's diversified business model, with a growing number of customers increasingly using the group's products.

Total customer deposits increased from EUR 15 billion to EUR 21 billion. On the other hand, due to expanded treasury capacities, increased customer balances, higher central bank rates, and growth in the credit portfolio, interest income grew to 575 million compared to 97 million in 2022.

Customer usage accelerated, with transaction volume increasing by 58% to nearly 804 billion. Monthly transactions totaled 590 million as of December 2023, an increase of 73%. In this context, the group highlights the growing number of customers who have fully used Revolut services through paid subscriptions, with 41% growth in customers opting for a paid plan.

The era of the virtual banks? 

The company has also expanded into new markets, including Brazil and New Zealand, bringing its global presence to 38 countries.

The 100% Digital Banks – also called virtual banks – market in Europe is projected to grow by 4.34% (2024-2029), resulting in a market volume of US$0.47tn in 2029.

With slight differences between countries, middle-income citizens dominate the digital banking market worldwide. In Spain, for example, we are talking about 53%, one of the highest rates in Europe. 

In the United States, where the percentage rises to 62%, the banking system is especially aggressive with the working classes, highly divided and pushed to contract numerous banking products and pay high commissions. It is estimated that each citizen in this country needs between 5 and 7 accounts to manage their money. 

This in fact is why neobanks even appeared, aimed especially at this target, rectifying the traditional banking methods: unifying savings, spending, and loans (which has a positive impact on a society as indebted as the one in the United States) and helping to regain control while reducing financial stress.

The post Revolut revenue increased 95% in 2023 appeared first on Cross-Border Magazine.

CoDi - the official Mexican online payment platform created by the Bank of Mexico - has announced that it is expanding into Europe through a partnership with Unlimint, a London-based fintech payments platform. 

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The partnership allows Unlimint to expand its portfolio of alternative payment methods with the addition of CoDi and encourages European companies to expand their operations in Mexico. 

With this new integration, Unlimint customers will receive a new, fast and secure payment method when making transactions using wire transfers, and businesses in Europe using CoDi technology, and also the European Unlimit customers will be able to expand into the Mexican market more easily.

At the same time, Mexican buyers will now be able to pay in Europe for online goods using a native solution. 

CoDi uses QR Code technology, free two-dimensional barcodes that are easy to implement on any mobile device, while Unlimint offers advanced payment capabilities through a financial interface focused on serving businesses around the world as it operates on 5 continents.

"We are delighted to be able to offer a new alternative payment method to businesses in Mexico. As consumers become more aware of online payment methods, it is important for merchants to facilitate secure cashless transactions. Adding CoDi to our portfolio demonstrates that Unlimint is committed to enabling customers to grow anywhere in the world and incorporate popular local electronic payment methods into their operations to remain competitive," said Irene Skrynova, chief customer officer at Unlimint.

CoDi current volume of transactions reaches over 6 million euros in Mexico

In 2018, Banco de México (Banxico) launched its CoDi payment platform with the aim of enabling more users in the country to make transactions through their cell phone. After more than a year of its launch, in 2021 the platform made close to 287,000 online money transfers which represents a total of 146 million Mexican pesos.

The post CoDi from Mexico expands into Europe with Unlimint appeared first on Cross-Border Magazine.