Germany Buy Now Pay Later Business and Investment Opportunities Databook - 75+ KPIs on BNPL Market Size, End-Use Sectors, Market Share, Product Analysis, Business Model, Demographics - Q1 2023 Update

The BNPL payment industry in Germany has recorded strong growth over the last four quarters, supported by increased ecommerce penetration.

According to the publisher, BNPL payments in the country are expected to grow by 19.4% on an annual basis to reach US$59,492.6 million in 2023.

Medium to long term growth story of BNPL industry in Germany remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 10.6% during 2023-2028. The BNPL Gross Merchandise Value in the country will increase from US$49,842.8 million in 2022 to reach US$98,393.3 million by 2028.

In Germany, buy now pay later has gained increasing prominence among millennials and Gen Z consumers as a budgeting tool. The accelerated adoption among Germans has been driven due to the availability of high-speed internet connectivity, the rise in awareness about flexible payment services, and the global pandemic outbreak. The percentage of young generation consumers in the region is further expected to create growth opportunities for the market in Germany.

The rising e-commerce industry is also projected to drive market growth over the next five years. While the demand among consumers is expected to further grow due to the surging cost of living, the interest rate environment is also expected to drive the short-term credit demand among small and medium-sized businesses. All of these factors, combined, are expected to support the growth of the German BNPL industry from the short to medium-term perspective.

BNPL lenders have spotted a new growth market in small and medium-sized businesses in Germany

Low level of investor confidence, surging interest rates, and multi-year high inflation are among the various factors that have continued to make things tough for small and medium-sized businesses in 2022. Amid the economic uncertainty, BNPL lenders have spotted a new growth market in the B2B payments space.

Small, especially new businesses, are often in need of huge upfront investments to get their business off the ground. As the current financial landscape has made it difficult for them to get funding from conventional channels, these businesses are turning to B2B BNPL providers in Germany. Many payment providers have extended their BNPL business model into the B2B space. Firms such as Mondu and Billie, both German-based, are now offering BNPL solutions to both consumers as well as small and medium-sized businesses.

With small businesses expected to face severe headwinds in 2023 due to the macroeconomic environment, the publisher expects the demand for B2B BNPL to further grow significantly over the next few quarters in Germany. This will keep assisting the overall BNPL market growth over the next three to four years.

Germany-based BNPL providers are forging strategic alliances with payment providers to expand their merchant network

Having an expanding network of merchants, offline and online, allows BNPL providers to tap into more consumer spending, thereby increasing their gross merchandise value and market share.

• In October 2022, Ratepay, one of the leading consumer-focused BNPL providers in Germany, announced that the firm had entered into a strategic collaboration with Easy e-commerce payment solution. The collaboration enables merchants associated with Easy e-commerce payment solutions in Austria to offer BNPL payment options to shoppers.

While this partnership will drive incremental revenue for merchants in Austria, Ratepay will expand its retailer network in the region, while also driving its gross merchandise value and volume over the next three to four years.

This report provides a detailed data centric analysis of Buy Now Pay Later (BNPL) industry, covering market opportunities and risks across a range of retail categories. With over 75 KPIs at country level, this report provides a comprehensive understanding of BNPL market dynamics, market size and forecast, and market share statistics.

It breaks down market opportunity by type of business model, sales channels (offline and online), and distribution models. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Germany. KPIs in both value and volume term help in getting in-depth understanding of end market dynamics.

The research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view on emerging business and investment market opportunities.

Scope

This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Germany through 57 tables and 71 charts. Below is a summary of key market segments:

Germany BNPL Market Size and Spending Pattern, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Germany Buy Now Pay Later Revenue Analysis, 2019-2028

• Buy Now Pay Later Revenues
• Buy Now Pay Later Share by Revenue Segments
• Buy Now Pay Later Revenue by Merchant Commission
• Buy Now Pay Later Revenue by Missed Payment Fee Revenue
• Buy Now Pay Later Revenue by Pay Now & Other Income

Germany Buy Now Pay Later Operational KPIs & Statistics, 2019-2028

• Buy Now Pay Later Active Consumer Base
• Buy Now Pay Later Bad Debt

Germany BNPL by Purpose, 2019-2028

• Convenience - Short Term Loans
• Credit - Loan Term Loans

Germany BNPL by Business Model, 2019-2028

• Two-Party (BNPL offered by retailers)
• Three-Party BNPL Offering

Germany BNPL by Merchant Ecosystem, 2019-2028

• Open Loop System
• Closed Loop System

Germany BNPL by Distribution Model Analysis, 2019-2028

• Standalone
• Banks & Payment Service Providers
• Marketplaces

Germany Buy Now Pay Later Market Share Analysis by Key Players

Germany BNPL Analysis by Channel, 2019-2028

• Online Channel
• POS Channel

Germany Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Home Improvement: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Travel/Entertainment: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Services: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Automotive: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Healthcare and Wellness: Market Size and Forecast, 2019-2028

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Groceries: Market Size and Forecast

• Gross Merchandise Value Trend Analysis
• Average Value Per Transaction Trend Analysis
• Transaction Volume Trend Analysis

Germany Buy Now Pay Later Analysis by Consumer Attitude and Behaviour

• Sales Uplift by Product Category
• Share by Age Group
• Share by Income
• Share by Gender
• Adoption Rationale

Reasons to buy

• Get a comprehensive understanding of market dynamics for Buy Now Pay Later: Identify market opportunities, major trends, and forecasting (2019-2028). Understand market trends through crucial KPIs like Gross Merchandise Value, Volume, and Average Value per Transaction, to stay ahead of the curve.
• Insights by end-use sectors: Evaluate new opportunities across multiple end-use sectors, and obtain market dynamics by end-use sectors in order to swiftly catch up with the latest and upcoming developments in BNPL markets.
• Market-specific strategies: Identify growth segments focused on specific opportunities, and analysing market-specific risks and important trends in the BNPL sector with our exclusive blend of quantitative forecasting and innovative insights.
• Gain knowledge of consumer attitudes and actions: This report identifies and interprets important Buy Now Pay Later KPIs, such as spend by age, gender, and income level, using data from a proprietary survey.
• Develop proactive and lucrative business strategies through market intelligence and forward-looking analysis of BNPL market spend and major opportunities in Germany.