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 - Q2 2024 Update

According to PayNXT360, BNPL payments in the country are expected to grow by 14.2% on an annual basis to reach US$62,272.0 million in 2024.

The medium to long-term growth story of the BNPL industry in the country remains strong. BNPL payment adoption is expected to grow steadily over the forecast period, recording a CAGR of 9.2% during 2024-2029. The BNPL gross merchandise value in the country will increase from US$54,550.3 million in 2023 to reach US$96,723.5 million by 2029.

The buy now pay later industry is thriving on the back of rising inflation and subsequent decline in disposable income in Germany. The trend, in 2024, is projected to continue with adoption rising among consumers across age groups. The uptake is expected to be especially higher among young generation consumers. As a result, PayNXT360 expects the buy now pay later market to grow at a significant rate over the medium term in Germany.

Key Developments in the BNPL Sector in Germany

The Buy Now Pay Later (BNPL) market in Germany has seen significant developments and product innovations, driven by changing consumer behaviours and economic conditions. Here are the key highlights:

Product Launches and Innovations

New Product Launches: Unzer, a prominent fintech firm, launched a new BNPL product called "upaylater" in 2023. This product combines invoice and instalment payment options into a single interface, making it more convenient for merchants to offer BNPL services. This innovation aims to enhance the user experience and cater to the growing demand for flexible payment solutions.

Strategic Partnerships

Collaboration with Fintech Startups: Several fintech firms are venturing into the BNPL market to meet the rising demand for flexible payment solutions. They are expected to partner with established retailers to enhance their services and drive innovation to cater to diverse consumer needs.

The BNPL market in Germany is experiencing robust growth and innovation, with new products and partnerships emerging to meet consumer demand. Economic pressures continue to influence consumer behaviour, driving expansion in the BNPL sector, especially in the small loan segment and among younger consumers seeking flexible payment solutions.

Regulatory Changes

The regulatory and government landscape for the Buy Now Pay Later (BNPL) sector in Germany has evolved significantly, reflecting the need for consumer protection amid rising usage. Here are the key developments:

Increased Consumer Protection Focus: The German government and regulatory authorities have heightened scrutiny of the BNPL sector due to a reported 30% increase in usage over the past year. This surge has raised concerns about potential debt traps, particularly among younger consumers who are increasingly using these services. Authorities are considering implementing stricter regulations to ensure responsible lending practices.

Proposed Guidelines for Responsible Lending: Discussions are ongoing regarding potential guidelines that would require BNPL providers to conduct thorough creditworthiness assessments before granting loans. This move aims to protect consumers from over-indebtedness and ensure that lending practices are transparent and responsible.

Focus on Small Loans: A significant portion of BNPL contracts in Germany falls under the small loan category, with 42% of loans amounting to less than €1,000. This trend has prompted regulators to consider specific measures tailored to small loans, ensuring that consumer protections are adequate for these types of financial products.

The BNPL regulations in Germany are evolving to enhance consumer protection and promote responsible lending practices as the market grows.

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

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

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

PayNXT360’s research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities. • Gain a thorough grasp of the dynamics of the industry for Buy Now Pay Later: Determine key trends, market opportunities, and projections for the years 2020–2029. To keep on top of the game, utilise critical KPIs such as volume, average value per transaction, and gross merchandise value to understand market trends.

• Get market dynamics by end-use sectors and assess new prospects across various end-use sectors to quickly stay up to date on the most recent and impending developments in BNPL markets.

• Market-specific strategies include identifying growth areas that are concentrated on particular opportunities and using our unique combination of quantitative forecasting and cutting-edge insights to analyse market-specific risks and significant trends in the BNPL sector.

• Learn about the attitudes and behaviours of consumers: This study uses information from a proprietary survey to identify and interpret key Buy Now Pay Later KPIs, such as spending by age, gender, and income level.

• Create profitable and proactive business plans by utilising market research and a forward-looking study of BNPL market spend and significant prospects in Germany. This report provides in-depth, data-centric analysis of Buy Now Pay Later industry in Germany through 55 tables and 71 charts. Below is a summary of key market segments:

Germany BNPL Market Size and Spending Pattern, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Germany Buy Now Pay Later Revenue Analysis, 2020-2029

• 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, 2020-2029

• Buy Now Pay Later Active Consumer Base

• Buy Now Pay Later Bad Debt

Germany BNPL by Purpose, 2020-2029

• Convenience – Short Term Loans

• Credit – Long Term Loans

Germany BNPL by Business Model, 2020-2029

• Two-Party (BNPL offered by retailers)

• Three-Party BNPL Offering

Germany BNPL by Merchant Ecosystem, 2020-2029

• Open Loop System

• Closed Loop System

Germany BNPL by Distribution Model Analysis, 2020-2029

• Standalone

• Banks & Payment Service Providers

• Marketplaces

Germany Buy Now Pay Later Market Share Analysis by Key Players

Germany BNPL Analysis by Channel, 2020-2029

• Online Channel

• POS Channel

Germany Buy Now Pay Later in Retail Shopping: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Travel: Market Size and Forecast, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Media and Entertainment: Market Size and Forecast, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• 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, 2020-2029

• Gross Merchandise Value Trend Analysis

• Average Value Per Transaction Trend Analysis

• Transaction Volume Trend Analysis

Germany Buy Now Pay Later in Others: 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

• Average Monthly Expense segments :Klarna

Afterpay

Paypal

Ratepay

Spotii

Lendico