German Card Payments Market to Surpass $850 Billion in 2029

The German card payments market is forecast to register a compound annual growth rate (CAGR) of 5.9% between 2025 and 2029 to reach €788.1 billion ($852.1 billion) in 2029, according to GlobalData. The growth will be supported by a constant consumer shift towards electronic payments.

The report reveals that card payment value in Germany registered a growth of 11.2% in 2023, driven by the rise in consumer spending. The value grew further to register an estimated growth of 6.4% to reach €574.6 billion ($621.3 billion) in 2024.

“Germany’s payment card market is experiencing rapid growth, with a decline in cash usage. It is expected to continue expanding in 2025, driven by factors such as a 100% adult banked population, the convenience of electronic payments, improving payment infrastructure, the increasing preference for contactless payments, and the growth in e-commerce payments,” said Ravi Sharma, Lead Banking and Payments Analyst at GlobalData.

Debit cards are the most popular card type in Germany, accounting for a significant share of total card payments. While debit cards were traditionally used for cash withdrawals, their usage for payments is gradually increasing. This growth can be attributed to the rising adoption and usage of contactless debit cards, which offer convenience and speed for low-value transactions.

On the other hand, credit and charge cards are less popular in Germany. This can be attributed to German consumers' debt-averse nature. However, banks are encouraging the adoption and usage of credit cards by offering value-added benefits such as installment facilities, reward points, and discounts at partner retailers.

Despite the growth in the payment card market, Germany still has a strong inclination towards cash usage. However, the EU-wide interchange fee regulation, the growth of contactless payments, the emergence of digital-only banks, and a robust e-commerce market have contributed to a gradual increase in payment card usage.

Banks and payment companies are also focusing on expanding payment infrastructure to encourage businesses to go digital. As of July 2024, 3.1 million SMEs were operating in the country—accounting for 99.4% of German firms. To serve them, POS providers offer low-cost mobile POS solutions.

“Looking ahead, a continued growth in the total card payments is expected to expand in Germany by 9% in 2025. The key drivers of this growth include the ongoing efforts to promote electronic payments, the expansion of the e-commerce market, and the availability of value-added benefits for cardholders. However, ongoing geopolitical uncertainty and economic slowdown will remain challenges,” concluded Sharma.