Payment Cards in Germany
http://www.reportsandreports.com/market-reports/payment-cards-in-germany/
Introduction
Payment Cards in Germany is an
invaluable guide to one of Europe's largest payment card markets. The
report provides statistics on market size, competitor market shares and
forecasts. It also provides an overview of regulation, competitor
activities, issuer strategy and product innovation including
developments in contactless, mobile payments, online and prepaid cards.
Scope
- Data and analysis provided on debit cards, credit cards and deferred debit and charge cards.
- Historic market data and competitor market shares are presented for 2004-2008, H1 2009, with market forecasts presented to 2013.
- New this year is data covering transactions by merchant category, premium card branding, benefits per card, card primacy and repayment behaviour.
- Concludes with a detailed analysis of developments in the areas of contactless, mobile payments, online and prepaid cards.
The payment card market in Germany is well-developed, but cards are not the preferred electronic method for consumers due to the popularity of credit transfers for high-value purchases. German consumers are uncomfortable with using revolving credit cards, and as a result these products are not especially popular.
The competitive landscape in the German credit card market has changed and now featues a large number of small players rather than being dominated by a few big players. The breadth of products is also approaching that seen in more mature markets. Barclaycard, the Sparkassen and Landesbank Berlin are the largest credit card issuers.
The credit card market in Germany declined in 2009 from 2008, but growth is expected to pick up in 2010 and remain positive through to 2013. The vast majority of payment cards in Germany are pay now products, however, and it is unlikely that this trend will be reversed.
Reasons to Purchase
- Learn how the German general purpose payment card market has developed over the last five years.
- Understand recent developments in the market in terms of consolidation, new entrants and product innovations.
- Use of Datamonitor's five year forecasts for the market to plan your future strategy.
OVERVIEW
Catalyst
Summary
EXECUTIVE SUMMARY
Sizing and forecasting the payment card market in Germany
Competitor and product developments in Germany
Online, contactless, prepaid and mobile payments
SIZING AND FORECASTING THE PAYMENT CARD MARKET IN GERMANY
Overview
Key macroeconomic and consumer data
Macroeconomic trends and performance
Demographic and consumer trends
Sizing the payment card market in Germany
Size and performance of the payment card market
Trends in payment card use compared to other countries
Regulatory environment
Regulation of German retail banking
Key issues facing the market
Fraud and EMV
Acquiring and processing landscape
Forecasting the payment card market in Germany
Forecasting the pay now card market
Forecasting the revolving credit card market
Forecasting the charge and deferred debit card market
COMPETITOR AND PRODUCT DEVELOPMENTS IN GERMANY
Overview
Card issuer market shares and performance
Credit card market shares
Pay now card market shares
Charge and deferred debit card market shares
Significant recent entrances and exits
Product design and issuer strategy in Germany
Credit card product strategy
Leading revolving credit products and price points
Leading loyalty programs
Card scheme market shares and developments
Pay now card scheme shares
Revolving credit card scheme shares
Charge and deferred debit card scheme shares
ONLINE, CONTACTLESS, PREPAID AND MOBILE PAYMENTS
Overview
Online payments in Germany were an estimated €66.5 billion market in 2009
Germany is the sixth largest market in terms of potential value and is worth €66.5 billion
Combined credit and debit cards account for the majority of online transactions in Germany, but neither is as popular as bank transfers
Contactless payments are a $68.6 billion opportunity in Germany
Germany is the largest market in terms of potential opportunity in Europe, being worth $68.6 billion
The integration of contactless commenced in 2008, driven by MasterCard initiatives
The petrol market offers the biggest opportunity for contactless payments, but has witnessed few developments
Convenience stores also offer numerous opportunities, but no large retailers have been targeted thus far
Fast food is the third biggest opportunity but has not received as much attention
Public transport provides fewer opportunities in terms of volume, but there are clear benefits from the consumer perspective that could be leveraged
Developments in prepaid cards
Developments in mobile payments
Germany has witnessed a number of mobile trials, but the technology has been slow to take off
APPENDIX
Regulatory bodies
Industry regulators
Industry associations
Credit bureaus
Supplementary data
Definitions
(Untitled sub-section)
Methodology
Cards and payments database
Financial Services Consumer Insight is new to our offering, providing new and valuable insight
Forecasting methodology
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
List of TABLES
Table: Germany: macroeconomic indicators
Table: Germany: demographics and consumer trends
Table: Datamonitor’s forecast for the pay now card market, 2008–13f
Table: Datamonitor’s forecast for the credit card market, 2008–13f
Table: Datamonitor’s forecast for the deferred debit and charge card market, 2008–13f
Table: Product details for revolving credit cards in Germany, 2010
Table: Fees and APRs applicable to revolving credit cards linked to loyalty programs in Germany, 2010
Table: GDP by country, 2008
Table: Unemployment and unemployment rate in Europe
Table: Germany: GDP growth, 2005–09
Table: Card penetration in Europe
Table: Germany: inflation (% change)
Table: Average transaction value and frequency of use for pay now cards in Europe
Table: Average transaction value and frequency of use for pay later cards in Europe
Table: Number of ATMs: Europe
Table: Population per ATM in European countries
Table: Number of POS terminals: Europe
Table: Population per POS terminal in European countries
Table: Balances outstanding and revolve rates, 2008
Table: Current relevant publications
Table: Future relevant publications
List Of FIGURES
Figure: Germany had the highest GDP in Europe in 2009
Figure: Germany’s economy contracted by 4.9% in 2009
Figure: Inflation in Germany reached its lowest rate of the period, 0.1%, in 2009
Figure: Germany had the third highest unemployment rate in Europe in 2009
Figure: Germany had 1.5 cards per person in 2008
Figure: Pay now cards are more dominant in Germany than pay later cards
Figure: Germany had the fifth highest pay now card penetration in Europe in 2008
Figure: Pay later cards grew at an AAGR of 29.7% over 2004–08 in Germany
Figure: Credit cards grew fastest in Germany over 2004–08, but are believed to have declined by 6.6% in 2009
Figure: Pay now cards accounted for the largest share of cards transactions in Germany in 2004–09e
Figure: POS transactions are fast replacing ATM withdrawals in Germany
Figure: Spending split by merchant category varied significantly in pay now and pay later markets in 2008
Figure: Credit cards are used least in Germany, with negative growth observed during 2004–08
Figure: POS transactions increased significantly in Germany in 2004–09e
Figure: Pay now cards accounted for the majority of transaction values in 2004–09e
Figure: The value of ATM transactions is expected to have declined less than that of POS transactions in 2009
Figure: Flights and hotels account for the greatest pay later transaction value in Germany
Figure: Average transaction values were highest for charge/deferred debit cards in 2004–09e
Figure: Average transaction value was higher for ATMs than the POS in Germany in 2004–09e
Figure: Germany exhibited above-average POS transaction values for Europe but the frequency of use was comparatively low in 2008
Figure: Germany had a turnover of €5,601 per pay now card, with the highest proportion of this at ATMs, in 2008
Figure: At the POS, pay later cards in Germany had a low frequency of use but the average transaction value was relatively high in 2008
Figure: Pay later cards see more turnover at POS terminals than pay now cards in Germany
Figure: Pay now spending by merchant category was more or less even across Europe in 2008
Figure: Pay later spending by merchant category varied considerably across Europe in 2008
Figure: The majority of credit cards held in Germany are considered to be primary
Figure: 46% of German credit cards are used all the time
Figure: Germany has the lowest revolve rate among all European countries
Figure: In Germany, 0% of credit cards are reported to have no payment made at all at the end of the interest-free period
Figure: Germany witnessed a CAGR of 2% during 2004–08 in terms of the number of ATM terminals
Figure: The growth in POS terminals was inconsistent in Germany over 2004–08
Figure: Regulatory overview of Germany
Figure: Growth in the value of transactions forecast to drive the pay now market forward during 2008–13f
Figure: Credit card transaction value is predicted to be the primary driver in the market in 2008–13f
Figure: Issuance of deferred debit and charge cards is predicted to decline in the market over 2008–13f
Figure: Barclaycard Deutschland is the largest issuer of credit cards in the German market
Figure: Deutsche Bank was the most popular credit card issuer in Germany in terms of frequency of use in 2008
Figure: Sparkassen and Advanzia Bank were the top players in terms of total value of transactions and average transaction value, respectively, in 2008
Figure: Revolve rates per outstanding balance were the highest for Volkswagen Bank in H1 2009
Figure: The way that consumers pay off their credit cards varies depending on the issuer
Figure: Sparkassen is the largest pay now card issuer in Germany
Figure: Sparkassen dominates the charge card market in Germany
Figure: Discounts on motor fuel are more common in Germany than the other European markets
Figure: Reward/loyalty points (not air miles) are the most important credit card benefit in the opinion of German consumers
Figure: Germany is in third place in terms of premium credit cards in Europe
Figure: The majority of credit card issuers offer gold cards as the premium products on offer
Figure: The majority of credit cards in Germany are considered primary
Figure: In Germany, most credit cards are used all the time
Figure: The Payback loyalty scheme has a wide range of merchant partners
Figure: HappyDigits has a popular co-branded card
Figure: EC/Maestro had the greatest number of pay now cards in issue during 2004–08
Figure: EC/Maestro accounted for the highest value of pay now card transactions during 2004–08
Figure: Visa- and MasterCard-branded cards were the most issued in Germany during 2008
Figure: MasterCard became the lead player in terms of value of transactions in 2008
Figure: MasterCard and Visa were the closest competitors and the most dominant players in charge and deferred debit card schemes in Germany during 2004–08
Figure: Visa accounted for the highest value of transactions in the charge and deferred debit card market over 2004–08
Figure: Online payments made up an estimated €66.5 billion market in 2009 in Germany
Figure: German consumers were not the highest spenders online in 2009
Figure: Credit cards were the second most popular payment method online in Germany in 2009, behind bank transfers
Figure: German consumers are among those making the least use of credit cards online
Figure: Debit card usage in Germany is low, unlike in the UK
Figure: Contactless payments are an $68.6 billion opportunity in Germany
Figure: The petrol market offers the biggest opportunity for contactless payments
Catalyst
Summary
EXECUTIVE SUMMARY
Sizing and forecasting the payment card market in Germany
Competitor and product developments in Germany
Online, contactless, prepaid and mobile payments
SIZING AND FORECASTING THE PAYMENT CARD MARKET IN GERMANY
Overview
Key macroeconomic and consumer data
Macroeconomic trends and performance
Demographic and consumer trends
Sizing the payment card market in Germany
Size and performance of the payment card market
Trends in payment card use compared to other countries
Regulatory environment
Regulation of German retail banking
Key issues facing the market
Fraud and EMV
Acquiring and processing landscape
Forecasting the payment card market in Germany
Forecasting the pay now card market
Forecasting the revolving credit card market
Forecasting the charge and deferred debit card market
COMPETITOR AND PRODUCT DEVELOPMENTS IN GERMANY
Overview
Card issuer market shares and performance
Credit card market shares
Pay now card market shares
Charge and deferred debit card market shares
Significant recent entrances and exits
Product design and issuer strategy in Germany
Credit card product strategy
Leading revolving credit products and price points
Leading loyalty programs
Card scheme market shares and developments
Pay now card scheme shares
Revolving credit card scheme shares
Charge and deferred debit card scheme shares
ONLINE, CONTACTLESS, PREPAID AND MOBILE PAYMENTS
Overview
Online payments in Germany were an estimated €66.5 billion market in 2009
Germany is the sixth largest market in terms of potential value and is worth €66.5 billion
Combined credit and debit cards account for the majority of online transactions in Germany, but neither is as popular as bank transfers
Contactless payments are a $68.6 billion opportunity in Germany
Germany is the largest market in terms of potential opportunity in Europe, being worth $68.6 billion
The integration of contactless commenced in 2008, driven by MasterCard initiatives
The petrol market offers the biggest opportunity for contactless payments, but has witnessed few developments
Convenience stores also offer numerous opportunities, but no large retailers have been targeted thus far
Fast food is the third biggest opportunity but has not received as much attention
Public transport provides fewer opportunities in terms of volume, but there are clear benefits from the consumer perspective that could be leveraged
Developments in prepaid cards
Developments in mobile payments
Germany has witnessed a number of mobile trials, but the technology has been slow to take off
APPENDIX
Regulatory bodies
Industry regulators
Industry associations
Credit bureaus
Supplementary data
Definitions
(Untitled sub-section)
Methodology
Cards and payments database
Financial Services Consumer Insight is new to our offering, providing new and valuable insight
Forecasting methodology
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
List of TABLES
Table: Germany: macroeconomic indicators
Table: Germany: demographics and consumer trends
Table: Datamonitor’s forecast for the pay now card market, 2008–13f
Table: Datamonitor’s forecast for the credit card market, 2008–13f
Table: Datamonitor’s forecast for the deferred debit and charge card market, 2008–13f
Table: Product details for revolving credit cards in Germany, 2010
Table: Fees and APRs applicable to revolving credit cards linked to loyalty programs in Germany, 2010
Table: GDP by country, 2008
Table: Unemployment and unemployment rate in Europe
Table: Germany: GDP growth, 2005–09
Table: Card penetration in Europe
Table: Germany: inflation (% change)
Table: Average transaction value and frequency of use for pay now cards in Europe
Table: Average transaction value and frequency of use for pay later cards in Europe
Table: Number of ATMs: Europe
Table: Population per ATM in European countries
Table: Number of POS terminals: Europe
Table: Population per POS terminal in European countries
Table: Balances outstanding and revolve rates, 2008
Table: Current relevant publications
Table: Future relevant publications
List Of FIGURES
Figure: Germany had the highest GDP in Europe in 2009
Figure: Germany’s economy contracted by 4.9% in 2009
Figure: Inflation in Germany reached its lowest rate of the period, 0.1%, in 2009
Figure: Germany had the third highest unemployment rate in Europe in 2009
Figure: Germany had 1.5 cards per person in 2008
Figure: Pay now cards are more dominant in Germany than pay later cards
Figure: Germany had the fifth highest pay now card penetration in Europe in 2008
Figure: Pay later cards grew at an AAGR of 29.7% over 2004–08 in Germany
Figure: Credit cards grew fastest in Germany over 2004–08, but are believed to have declined by 6.6% in 2009
Figure: Pay now cards accounted for the largest share of cards transactions in Germany in 2004–09e
Figure: POS transactions are fast replacing ATM withdrawals in Germany
Figure: Spending split by merchant category varied significantly in pay now and pay later markets in 2008
Figure: Credit cards are used least in Germany, with negative growth observed during 2004–08
Figure: POS transactions increased significantly in Germany in 2004–09e
Figure: Pay now cards accounted for the majority of transaction values in 2004–09e
Figure: The value of ATM transactions is expected to have declined less than that of POS transactions in 2009
Figure: Flights and hotels account for the greatest pay later transaction value in Germany
Figure: Average transaction values were highest for charge/deferred debit cards in 2004–09e
Figure: Average transaction value was higher for ATMs than the POS in Germany in 2004–09e
Figure: Germany exhibited above-average POS transaction values for Europe but the frequency of use was comparatively low in 2008
Figure: Germany had a turnover of €5,601 per pay now card, with the highest proportion of this at ATMs, in 2008
Figure: At the POS, pay later cards in Germany had a low frequency of use but the average transaction value was relatively high in 2008
Figure: Pay later cards see more turnover at POS terminals than pay now cards in Germany
Figure: Pay now spending by merchant category was more or less even across Europe in 2008
Figure: Pay later spending by merchant category varied considerably across Europe in 2008
Figure: The majority of credit cards held in Germany are considered to be primary
Figure: 46% of German credit cards are used all the time
Figure: Germany has the lowest revolve rate among all European countries
Figure: In Germany, 0% of credit cards are reported to have no payment made at all at the end of the interest-free period
Figure: Germany witnessed a CAGR of 2% during 2004–08 in terms of the number of ATM terminals
Figure: The growth in POS terminals was inconsistent in Germany over 2004–08
Figure: Regulatory overview of Germany
Figure: Growth in the value of transactions forecast to drive the pay now market forward during 2008–13f
Figure: Credit card transaction value is predicted to be the primary driver in the market in 2008–13f
Figure: Issuance of deferred debit and charge cards is predicted to decline in the market over 2008–13f
Figure: Barclaycard Deutschland is the largest issuer of credit cards in the German market
Figure: Deutsche Bank was the most popular credit card issuer in Germany in terms of frequency of use in 2008
Figure: Sparkassen and Advanzia Bank were the top players in terms of total value of transactions and average transaction value, respectively, in 2008
Figure: Revolve rates per outstanding balance were the highest for Volkswagen Bank in H1 2009
Figure: The way that consumers pay off their credit cards varies depending on the issuer
Figure: Sparkassen is the largest pay now card issuer in Germany
Figure: Sparkassen dominates the charge card market in Germany
Figure: Discounts on motor fuel are more common in Germany than the other European markets
Figure: Reward/loyalty points (not air miles) are the most important credit card benefit in the opinion of German consumers
Figure: Germany is in third place in terms of premium credit cards in Europe
Figure: The majority of credit card issuers offer gold cards as the premium products on offer
Figure: The majority of credit cards in Germany are considered primary
Figure: In Germany, most credit cards are used all the time
Figure: The Payback loyalty scheme has a wide range of merchant partners
Figure: HappyDigits has a popular co-branded card
Figure: EC/Maestro had the greatest number of pay now cards in issue during 2004–08
Figure: EC/Maestro accounted for the highest value of pay now card transactions during 2004–08
Figure: Visa- and MasterCard-branded cards were the most issued in Germany during 2008
Figure: MasterCard became the lead player in terms of value of transactions in 2008
Figure: MasterCard and Visa were the closest competitors and the most dominant players in charge and deferred debit card schemes in Germany during 2004–08
Figure: Visa accounted for the highest value of transactions in the charge and deferred debit card market over 2004–08
Figure: Online payments made up an estimated €66.5 billion market in 2009 in Germany
Figure: German consumers were not the highest spenders online in 2009
Figure: Credit cards were the second most popular payment method online in Germany in 2009, behind bank transfers
Figure: German consumers are among those making the least use of credit cards online
Figure: Debit card usage in Germany is low, unlike in the UK
Figure: Contactless payments are an $68.6 billion opportunity in Germany
Figure: The petrol market offers the biggest opportunity for contactless payments
