PayPal most popular online payment method in Germany

For years, purchasing on account was the most popular payment method in Germany for online shoppers. However, in 2022, PayPal took over that place. At least 29.6 percent of online purchases were paid for with this payment method.

The estimated online net sales in Germany for last year are 85 billion euros. This is a slight decrease compared to 2021, when sales were 86 billion euros. The difference is due to the fact that brick-and-mortar stores reopened.

Purchasing on account in second place

In 2021, PayPal reached a share of 28.2 percent of sales in ecommerce in Germany. According to EHI Retail Institute, purchasing on account is now in second place with a share of only 23.8 percent. This is a decrease of 4.5 percentage points compared to 2021.

Giropay climbed up from 0.4 to 1.6%

Debit card is in third place with a share of 20.9 percent and credit card follows in fourth place (12.1 percent). Giropay, which is a joint digital payment method of German banks, climbed from 0.4 to 1.6 percent in the past year.

‘PayPal is not cheap for retailers’

“Paying with PayPal is quick and convenient for customers, but not exactly cheap for retailers. Paypal is offered almost everywhere in retail and offers the option of only paying for purchases after 30 days”, said Radoslav Raychev, author of the Online Payment 2023 study.

More than three quarters of German online retailers offer BNPL

More than three quarters of German retailers (76.9 percent) offer BNPL in their online store. Most frequently, they offer purchasing on account (67 percent), followed by PayPal (43 percent). Installment purchase/financing is also offered commonly (24 percent).