According to the 2024 KfW SME Digitalization Report, more than a third of medium-sized businesses in Germany have recently undertaken digitalization projects. This represents a 5% increase compared to 2019. Digital transformation has brought about profound changes in the economy and society over the past two decades. One of the key developments is the rise of digital platforms.

In this article, you will learn what a digital platform is, what is required to build one, and how businesses in Germany can do this step by step. We also explain how to monetize such networks.

What’s in this article?

• What is a digital platform?
  
• Economic impact of platform models in Germany
  
• What does a German business need to build a digital platform?
  
• How can businesses in Germany build a digital platform?
  
• How can German businesses monetize their platform?
  
• Tips for building a digital platform
  

What is a digital platform?

A digital platform is an internet-based infrastructure that connects different user groups and enables the exchange of goods, services, or information. In this way, an online platform acts as an intermediary, such as between sellers and buyers or app developers and end users.

What is the difference between a platform and a marketplace?

A marketplace is a specialized environment designed to facilitate the exchange of goods and services between buyers and sellers.

Economic impact of platform models in Germany

The economic impact of these frameworks is enormous, as evidenced by their rapidly increasing economic importance. The world’s five largest platform companies (Microsoft, Apple, Amazon, Alphabet, and Meta Platforms) have a market capitalization of nearly €11 trillion. In comparison, Germany’s GDP was approximately €4.31 trillion in 2024. Platform businesses are among the most valuable in the world today and shape entire industries.

So far, the focus has been primarily on consumer-oriented applications—communication, commerce, mobility, and entertainment. Industrial firms are increasingly discovering the advantages of platform logic. In the B2B sector, digital ecosystems are emerging that automate processes, integrate data flows, and enable new business models—from machine maintenance to supply chain coordination.

The structural change is also visible in the labor market. It is estimated that by 2030, around 42.7 million people in the European Union will be working in the platform economy—as developers of digital offerings, providers of services, or as part of supporting roles.

In Germany, this trend is evident in the growing number of businesses developing their frameworks. Between 2018 and 2022, B2B marketplaces experienced a growth rate of 42%. The same applies to B2C in German-speaking countries; here, the number of active trading hubs has increased by 40% over the past two years, reaching 214 in 2022. Accordingly, the turnover of online markets in Germany increased by 4.7% to €44.03 billion in 2024 compared to the previous year.

Examples of different types of platforms

Digital platforms can be categorized into various types based on the kind of interaction, mediation, or service they facilitate. The following overview shows example platform types with typical use cases:

• Marketplaces with digital sales channels (e.g., online shops for clothing or handmade products)
  
• Intermediation services for products or services (e.g., food delivery, transportation)
  
• Platforms for sharing goods and resources (e.g., car sharing, temporary accommodation)
  
• Search and recommendation services (e.g., internet search, travel recommendations)
  
• Portals for comparing, rating, or commenting (e.g., compare electricity tariffs, rate restaurants)
  
• Networks for networking (e.g., professional and social networks)
  
• Media and content platforms (e.g., stream music, watch videos)
  

What does a German business need to build a digital platform?

Many German businesses are increasingly asking themselves whether they can build an online platform themselves and how to digitize processes, expand existing approaches, or open up new markets. However, some requirements must be met before the actual building begins.

Platform strategy

The basis of a new operating base has to always be a comprehensive platform strategy. This ensures that the project takes into account the technical and legal framework conditions, creates real added value for all parties involved, and incorporates a viable business model. When developing a platform strategy, the following questions, among others, need to be clarified:

• What is the goal of the platform?
  
• Who are the user groups involved?
  
• What added value does the platform offer compared to traditional channels?
  
• What role does the business play as a platform operator (e.g., neutral intermediary or provider of its services)?
  

Technological infrastructure

Digital platforms are based on stable, scalable, and secure IT architecture. Businesses have a choice: develop internally, utilize modular systems, or engage specialized service providers? Each option has different criteria, degrees of freedom, and dependencies.

In-house creation offers maximum control and individual design options, but it demands considerable technical expertise and a long-term commitment of human resources. Modular solutions allow for a jumpstart but quickly reach their limits when it comes to more complex requirements. Working with vendors can be a good interim solution—especially if they have experience in building comparable frameworks. When making the decision, a business needs to consider that a platform is not a one-time project but a dynamic system that has to be continuously adapted and improved.

Partnerships

Strategic partnerships can be a key factor in the success of building digital platforms. Medium-sized businesses, in particular, often lack the necessary skills and resources. Collaborations with industry specialists, technology providers, and financial vendors can help to implement one faster, more securely, and in a more customer-friendly manner. Partnerships are beneficial in areas that are both legally and technically complex, such as payment processing. For example, integrating an external payment service provider can significantly simplify the setup process.

This is where Stripe Connect can support you. With Connect, platform operators can provide their customers worldwide with a range of local payment methods. They can also offer automated calculation and collection of sales taxes, in-person disbursements, instant payouts, financing, and corporate credit cards on their platform. The solution can be integrated and scaled in just a few weeks—an attractive option for those that want to build a profitable international payments business without becoming a financial services provider themselves.

Legal certainty

Anyone looking to create a digital platform in Germany must consider the legal framework from the outset—including data protection. The General Data Protection Regulation (GDPR) and the Federal Data Protection Act (BDSG) have to be followed. Operators are generally considered responsible within the meaning of Art. 4, No. 7 of the GDPR and obliged to, among other things:

• Provide a privacy policy by Art. 13 of the GDPR
  
• Clearly define the legal basis for data processing (e.g., consent according to Art. 6, Para. 1 of the GDPR)
  
• Maintain a record of processing activities (Art. 30 of the GDPR)
  
• Appoint a data protection officer (Section 38 of the BDSG), if necessary
  
• Conclude data processing agreements with external service providers (Art. 28 of the GDPR)
  
• Implement technical and organizational measures to safeguard personal data by Art. 32 of the GDPR
  

For publicly accessible platforms, the information obligations of the German Digital Services Act (DDG) also apply. According to Section 5 of the DDG, providers of digital solutions are, in particular, obliged to ensure that details are easily recognizable, directly accessible, and permanently available on their website—in particular, their name, address, contact details, and, where applicable, registration and supervisory information.

If a German business, as a platform operator, concludes distance-selling contracts with end consumers, additional regulations apply—including the right of withdrawal under Section 355 of the German Civil Code. The Act against Unfair Competition (UWG) is also relevant—e.g., when designing reviews, search results, or advertising.

Depending on the platform model—e.g., brokerage, sales, or subscription—trade-law requirements under the German Industrial Code (GewO) might apply. From a tax perspective, German establishments acting as platform operators have to ensure correct invoicing and processing value-added tax (VAT).

How can businesses in Germany build a digital platform?

Building a digital platform can be challenging, involving numerous organizational, technological, and administrative issues. The following steps provide guidance and must be followed in every case:

Determine the platform model

The first step is to decide what the planned platform needs to achieve based on the industry, the business’s areas of activity and objectives, and the available resources. Should it enable transactions, convey knowledge, connect services, or build communities? Depending on the purpose, different frameworks can emerge—e.g., a marketplace, a brokerage platform, or a hybrid system.

For the domestic market, platform models in the B2B sector could enhance supply chains, facilitate specialized recruitment of skilled workers, or encourage the sharing of machinery and equipment. Regionally oriented platforms with a focus on crafts, education, or healthcare also offer great prospects in Germany, as they can address local needs.

Analyze the market environment

A realistic view of the market environment helps sharpen positioning. Which platforms already exist? Where are their blank spots? What do established vendors do well, and where is there potential for improvement or gaps that can be closed? Competitive analyses, market volume estimates, and customer surveys provide valuable insight for a differentiating strategy.

Define functions

The scope of features can be derived from the platform model and the results of the market analysis. These include, for instance, user accounts, search and filter functions, payment processing, booking systems, communication modules, and rating options. In Germany, interfaces to existing enterprise resource planning (ERP) and accounting solutions, multilingual guidance, as well as aspects such as accessibility and data protection functions also play a major role. The more precisely the features are defined in advance, the better the development effort, timeframe, and costs can be estimated. The range of capabilities largely determines monetization.

Plan resources

Many companies underestimate the resources required to launch a platform. Not only do you need developers, but you need experts in UX/UI design, law, billing, privacy, marketing, and customer support. The big question is: what competencies are available internally, and which need to be supplemented by service providers? In this context, the business must decide whether it wants to build internally, utilize modular solutions, or commission third-party vendors.

Secure financing

When creating a platform, costs arise not only for technical development. Additionally, expenses for legal protection, training, maintenance, and marketing, among other items, have to be planned. Define the financing framework as early as possible and avoid surprises. German businesses need to also inform themselves about funding opportunities at the state, federal, and EU levels.

Clarify internal responsibilities

Successfully running a digital platform requires clear responsibilities. Especially since the work does not end with the go-live—on the contrary, they are dynamic systems that must be continuously maintained and enhanced. Establish an interdisciplinary team with clear responsibilities from the outset. Individuals or service providers with sound IT expertise manage hosting and security, while others oversee content management, support, data protection, quality assurance, and strategic development.

Test the platform

Anyone who wants to build a successful online platform has to plan sufficient time and resources for the testing phase. Before the official launch, the system has to be tested under realistic conditions—both technically and in terms of user guidance, content, and processes. A staggered start—an initial test with a select group—lets you spot and fix issues early.

Promote and launch the platform

A planned and well-communicated launch ensures visibility, trust, and initial activity. This is not just about technically activating the platform; it’s about effectively utilizing it. Potential users must be explicitly addressed to convey the added value of the service and motivate them to participate actively. A well-thought-out marketing and communication concept is fundamental—and ideally prepared during the development stage. Measures can vary depending on the target group and budget, from press work and social media campaigns to search engine marketing and cooperation with multipliers.

How can German businesses monetize their platform?

Monetizing digital platforms is primarily a strategic question because monetization has to fit the audience, the commercial strategy, and the market. German businesses must focus not only on short-term income but also on creating sustainable value. The following revenue approaches are generally possible:

Freemium models

Free basic access combined with paid extras can build a large user base and then convert targeted paying customers. What is significant here is a clear added value in the paid version.

• Examples: Dropbox, Zoom
  

Transaction models

Platforms can charge a commission for each successful transaction—e.g., a percentage of the turnover or a fixed fee. This suits marketplaces and intermediary offerings that handle trade, bookings, or services.

• Examples: eBay, Airbnb, Uber
  

Subscriptions and memberships

Recurring payments, such as those for access to exclusive features or content, are ubiquitous in B2B. Subscription models are easy to scale and offer secure planning—e.g., for platforms with specialist information, networks, or software tools. With Stripe Billing, businesses can accept both recurring payments and invoice-based billing.

• Examples: LinkedIn Premium, Spotify
  

Platform-as-a-service (PaaS)

Businesses make their platform infrastructure available to other providers. This allows third parties to develop, operate, and distribute their products or services on an existing technical foundation.

• Example: AWS Marketplace
  

Listing/advertising fees

Suppliers pay to list their products or services. The platform earns from the visibility it offers through its extensive reach, regardless of actual sales.

• Examples: ImmobilienScout24, AutoScout24
  

Advertising and sponsorship

With sufficient reach, advertising can represent a relevant source of income (banner ads, sponsored content). For the German market, the requirements of the UWG have to be observed, particularly regarding label requirements.

• Examples: Facebook, YouTube
  

Data-based business models

Within the scope of GDPR-compliant use, anonymized usage data and market research results can be commercialized for legitimate purposes. This approach demands utmost sensitivity in handling the records obtained.

• Examples: Google, Meta
  

Many successful platforms combine various methods, including free basic services, paid premium features, and additional advertising revenue. Whatever the case, monetization mustn't worsen the user experience. They must understand the costs and perceive them as fair.

Tips for building a digital platform

Beyond the steps mentioned above, businesses in Germany need to consider the following tips:

• Scalable structures
  Although the platform might start small, its architecture needs to be designed for growth. Scalability affects not only technology but also workflows, support, communication, and operating models.

• User-centricity
  A platform thrives on trust and satisfaction. Regular feedback helps to improve capabilities and processes continuously. It is therefore advisable to ask users specifically about their experience, for example, via surveys or feedback buttons—ideally immediately after they have used key functions.

• Transparency and security
  In Germany, in particular, data protection, fair conditions, and secure transactions are major concerns. Businesses must not only act in compliance with the law but transparently as well—e.g., through clearly formulated terms and conditions, understandable privacy statements, and reliable customer support.

• Community building
  Platforms are not only technological but also often social systems. Especially for marketplaces, specialist portals, and niche sites, it is worthwhile to build a committed community early on—e.g., through forums, events, or targeted incentives for contributions.

• Success factors
  Success can only be controlled if it is measurable. Before launching, businesses need to determine which key performance indicators are relevant—e.g., user loyalty, conversion rates, and transaction volume. Regular evaluations enable data-based refinements of the platform.