PayPal is most popular payment method among Germans
German consumers prefer to pay with PayPal when they are shopping online. This payment method was the favorite of 57 percent of customers who have a preferred way to pay for their online orders.
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Although PayPal is a favorite among German customers, this doesn’t mean online retailers active in Germany should only focus on this payment method. Because customer needs and preferences are very heterogeneous.
The Institute for Banking Innovation (Ibi) at the University of Regensburg has conducted a survey among 1,011 regular online shoppers from Germany, asking them about their preferences, experiences and behavior when paying online.
PayPal, invoice, credit card and direct debit
This study shows that 72 percent of German online shoppers have a payment method they prefer over others, 11 percent even want to use their favorite method only. Among consumers with a preferred payment method, 57 percent would choose PayPal, followed by invoice (22 percent), credit card (11 percent) and direct debit (5 percent).
72 percent of German online shoppers have a payment method they prefer over others.
Online retailers who offer only one payment method reach a maximum of six out of ten customers, the study finds. And that’s because no payment method is liked by all customers. So, by offering a wide range of payment methods, online retailers can reduce the amount of purchase cancellations.
Offering these six methods ensures a dropout rate of just 3%
“Across all the scenarios considered, offering the five most common methods (PayPal, invoice, credit card, direct debit and instant transfer) plus prepayment ensures a dropout rate of only 3 percent”, the research institution writes.