In Germany, the annual volume of digital payments is over €50 trillion. That’s more than 10 times the country’s gross domestic product. This astronomical figure is also likely to rise. In the Coalition Agreement for the 21st Legislative Period, the German government announced its intention to promote digital payment methods.

This article explains digital payment methods, including how widely used they are in Germany and the advantages of each option. We also explain how German businesses can digitize their payments and what the legal obligations exist, both now and in the future.

What’s in this article?

• Digital payments: Definition
  
• What digital payment methods exist?
  
• Digital payments: Statistics and trends in Germany
  
• What are the benefits of digital payments for businesses in Germany?
  
• How can German businesses digitize their payments?
  
• The future of digital payments in Germany
  

Digital payments: Definition

Digital payments—also known as “electronic payments”—refer to the processing of monetary transactions via digital channels. This occurs without the use of cash or other physical means of payment, such as checks. Consequently, it encompasses all digital payment methods that are processed online or via electronic devices, such as cash register terminals or smartphones.

What digital payment methods exist?

Developments in digital payments have quickly accelerated in recent years. A wide range of technologies, platforms, and systems allow businesses in Germany to make and receive digital payments:

Electronic online payment systems

Digital bank transfers are one of the most established forms of digital payment:

• Standard transfers: With classic Single Euro Payments Area (SEPA) credit transfers, sums of money can be transferred between bank accounts within the SEPA zone.

• Real-time transfers: Bank transfers in real time can be used for time-critical transactions. For example, a SEPA Instant Credit Transfer credits the money to the payee’s account within 10 seconds.

• Electronic checks: eChecks are digital photos of paper checks that are processed via electronic payment networks. While they are more widely used in the US, they are sometimes used in Germany for invoices, rent, or recurring payments.

• Telegraphic transfers: Another option is telegraphic transfers (TT), also known as “wire transfers.” These are particularly suitable for time-sensitive, international transfers involving large sums and are processed via systems such as Swift.

Card payments

Card payments using physical or digital payment cards are also very popular in Germany:

• Credit cards
  With this payment method, the amount due is first assumed by the credit card provider and then charged to the credit card holder’s account, usually once a month. Major providers include Visa, Mastercard, American Express, and Diners Club. These cards are accepted online and by brick-and-mortar retailers worldwide.

• Debit cards
  Debit cards are payment cards where the amount is debited from the associated checking account as soon as the cardholder makes a purchase or withdraws cash. The girocard is the most popular debit card in Germany. It can be used in stores and at automated teller machines (ATMs). A girocard must have an additional Visa or Mastercard debit function to be used overseas or online.

• Digital cards and e-wallets
  Digital cards are virtual versions of credit or debit cards that can be stored in digital wallets and used via smartphones, smartwatches, or tablets. They use near-field communication (NFC) technology for contactless capabilities and offer a secure and convenient alternative to physical cards. Many banks automatically provide digital cards in addition to physical cards.

Other options

There are several other options available to businesses in Germany looking to process digital payments:

• Mobile payment apps
  Mobile payment apps allow customers to send or receive money quickly and easily via their smartphones. This method can be used for online or in-store shopping or to make private payments to friends.

• Buy now, pay later (BNPL) services
  BNPL services are becoming increasingly popular, especially in ecommerce. These are short-term financing models where customers receive their items immediately but don’t pay until later, sometimes across multiple installments. In many cases, BNPL services are interest-free for a fixed period.

• Cryptocurrencies
  Cryptocurrencies are digital payment methods based on decentralized technologies—mostly distributed ledger technology (DLT) and blockchain. Unlike classic payment methods, cryptocurrencies—such as Bitcoin, Ethereum, or Tether—are not issued by central banks or states but are generated and secured in an open network using cryptographic processes. In Germany, cryptocurrencies were previously used largely for speculation and investment properties. However, they can currently be used on a number of online platforms and with select delivery services or restaurants.

Digital payments: Statistics and trends in Germany

The statistics below show that digital payments have become important to everyday life in Germany. They have also become a success factor for German businesses, both economically and strategically.

Here are some important statistics:

• SEPA currently processes around 50 billion transactions in 41 countries every year.
  
• In 2023, nearly 62% of total sales in the German retail sector were paid for by card. That’s nearly €300 billion out of a total of €485 billion. The year prior, that figure was still below 60%.
  
• The number of card payments in Germany rose by almost 16% between 2022 and 2023, reaching 11.8 billion transactions.
  
• Only 3% of Germans do not own a girocard. That means there are around 100 million girocards in circulation in Germany.
  
• According to the Bundesbank, 6% of transactions in the German retail sector in 2023 were mobile payments. That represents a threefold increase year-on-year.
  
• One in four Germans used the BNPL option in 2023—rising to a full 34% among millennials aged 27–42.
  

What are the benefits of digital payments for businesses in Germany?

Digital payments offer businesses in Germany many advantages compared to physical transactions:

Security with modern technology

Digital payments mean a high level of security for customers, which also benefits businesses indirectly. Tokenization, encryption, and biometric authentication lower the risk of fraud and data misuse significantly. This can increase customers’ trust in businesses.

Transparency in real time

With digital payments, all transactions can be viewed and monitored directly. This makes it easier for businesses to manage bookkeeping, budget control, and refunds and monitor unusual activities.

Efficient processes

Digital payments reduce admin, speed up approvals, and simplify integrations with bookkeeping or enterprise resource planning (ERP) systems. This can help simplify digital invoice, receipt, and payment processing.

Flexibility for growth business models

Digital payment systems are flexible and adaptable for many businesses—from small online stores to major international corporations. New markets, points of sale, and payment methods can be integrated with ease, without disrupting existing processes.

Customer satisfaction

With digital payments, customers can enjoy convenience, security, and flexibility, which can have a positive impact on customer satisfaction and loyalty.

How can German businesses digitize their payments?

Analysis and target setting

Businesses in Germany looking to digitize payments should start by analyzing their current payment processes using some of the questions below:

• What payment methods does the business currently offer customers?
  
• How are payments recorded, posted, and reversed?
  
• How long does it take for payments to come in?
  
• What bookkeeping or ERP systems does the business use?
  

Based on this analysis and a business’s objectives, business owners can create an action plan that takes into account technological, organizational, and legal factors.

Identification of providers and solutions

Once a business has established desired processes and functions, the next step is to research relevant providers. Stripe Payments is a high-performance solution for digital payments. Businesses in Germany can use Payments to give their customers access to more than 100 payment options—online and directly at their points of sale.

Technical integration

The next step is to connect the new solution to internal systems, such as bookkeeping, ERP, or customer relationship management (CRM) platforms. Most of the time, the solution integrates smoothly into existing systems via standardized application programming interfaces (APIs). Businesses should involve all relevant departments at an early stage to meet technology and process requirements. Good preparation will make acceptance and smooth onramping easier.

Legal compliance

Digital payments impose certain legal requirements on businesses:

• Archiving receipts in compliance with the principles for the proper management and storage of books, records, and documents in electronic form (GoBD)
  
• Processing personal payment information in compliance with the General Data Protection Regulation (GDPR)
  
• Complying with payment service provider regulations (e.g., revised Payment Services Directive [PSD2])
  

The future of digital payments in Germany

So far, businesses in Germany have not been legally obligated to offer customers digital payment options. In principle, they are free to choose which payment methods they accept. However, this could change in the future.

In the Coalition Agreement for the 21st Legislative Period, the governing coalition—which includes the Christian Democratic Union (CDU), Christian Social Union (CSU), and Social Democratic Party (SPD)—made a political declaration of intent. It stipulates that businesses will be required to offer at least one digital payment option in the future, in addition to cash payments.

At the time of publication (September 2025), it is not currently clear when this declaration might turn into a draft bill and, ultimately, a legal obligation for businesses in Germany. Normally, this sort of legal regulation is preceded by consultations with industry associations or consumer organizations. In addition, the Coalition Agreement discusses a “staggered rollout” for the requirement.

Regardless of legal obligations, German businesses that solely rely on cash should start preparing for the new legislation. It is likely that digital payments are going to continue to increase in relevance. For example, a 2024 study shows that 88% of Germans now expect retail stores to offer digital payment methods. Businesses that fail to meet customer expectations risk losing sales to competitors with more up-to-date systems in place.