Payment Cards in Germany

Introduction

Payment Cards in Germany is a guide to one of Europe's largest payment card markets. The report provides statistics on market size, competitor market shares and forecasts. It also provides an overview of regulations, competitor activities, issuer strategy, product innovation, consumer segmentation and includes developments in contactless, mobile, prepaid cards and online payments.

Features and benefits

* Detailed market sizing, competitor shares and forecasts are an invaluable guide for any cards player building a business case for activity in Germany.
* In-depth insight into contactless, mobile, prepaid and online payments highlights future opportunities for all industry stakeholders.
* Detailed analysis of consumer segmentation allowing issuers to target consumer segments with knowledge of their behavior and wants.
* Detailed analysis of Germany's regulatory framework assists potential market entrants in understanding current and possible future legislation.

Highlights

Germany has a well developed payments card market, although credit cards have a far lower penetration rate compared to other European markets. In 2010, there were only 15.4 million credit cards compared with 103.2 million pay now cards. However, credit cards have seen a faster CAGR of 12% compared with only 4.4% for pay now cards.
German banks are split into three distinct pillars: commercial banks, savings banks, and credit unions. Foreign issuers are more visible in the credit card market while the local Sparkassen dominate the pay now market. The presence of ELV payments and the Girocard debit scheme pose extra barriers for foreign issuers entering the pay now market.
Alternative payments have seen recent developments in Germany. The GeldKarte is the dominant domestic prepaid card scheme supported by German banking associations. Development of contactless has been led by retailers with increasing numbers of contactless terminals on petrol forecourts. NFC in Germany is advancing with Deutsche Telekom's rollout.

Your key questions answered

* Which card segments are showing the fastest growth in the German payments market and why?
* Who are the key players in Germany and what is their market share?
* How do German and EU regulatory changes impact the payment cards sector?
* How extensive are mobile and contactless payments and where does future growth lie?
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Executive Summary
Sizing and forecasting the payment card market in Germany
Acquiring and processing landscape
Competitor and product developments in Germany
German credit card consumer segments
Online, contactless, prepaid, and mobile Payments
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Catalyst
Summary
SIZING AND FORECASTING THE PAYMENT CARD MARKET IN GERMANY
Overview
Key macroeconomic and consumer data
Macroeconomic trends and performance
Demographic and consumer trends
Sizing the payment card market in Germany
Size and performance of the payment card market
Market structure and key issues
The EU Consumer Credit Directive will force German lenders to be internationally competitive
SEPA represents both a challenge and an opportunity to market players
Key institutions and players
Industry regulators
Industry associations
Credit bureaus
Forecasting the payment card market in Germany
Forecasting the pay now card market
Forecasting the revolving credit card market
Forecasting the charge card market
ACQUIRING AND PROCESSING LANDSCAPE
Overview
The German processing landscape is dominated by First Data and ATOS
Acquiring in Germany is dominated by B+S Card Service and ConCardis, both of which are eyeing international opportunities
Girocard monopolizes both the debit payment and the ATM system making market entry and competition difficult
The German payment market will change drastically with the demise of the ELV payment mechanism
COMPETITOR AND PRODUCT DEVELOPMENTS IN GERMANY
Overview
The competitive landscape
Key competitors
Commercial banks
Banks governed by public law
Co-operative banks
Card issuer market shares and performance
Credit card market shares
Pay now card market shares
Charge card market shares
Leading revolving credit products and price points
Leading loyalty programs
Card scheme market shares and developments
Pay now card scheme shares
Revolving credit card scheme shares
Charge card scheme shares
GERMAN CREDIT CARD CONSUMER SEGMENTS
Overview
Understanding consumer profiles provides opportunities for issuers to gain market share
Datamonitor has defined two German credit card profiles
The proportion of consumers with a credit card increases with age
Nearly three quarters of German credit card users pay off their balance in full
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Attracting new consumers is a major challenge for German issuers, as most card holders are satisfied with their existing card
Over 89% of German credit card holders are unlikely to change cards
More than 80% of card holders are unlikely to switch as their current card meets their needs
Issuers are most likely to attract new consumers by offering cards with a low annual fee
Traditional distribution channels such as branches and shops are decreasing in popularity in favor of online and telephone
Both revolvers and transactors are undersupplied in terms of low interest credit cards
Attracting a greater number of transactors can be achieved by offering low interest cards
Rewards and loyalty schemes are oversupplied to revolvers, with over half of consumers having the benefit while only a third want it
ONLINE, CONTACTLESS, PREPAID, AND MOBILE PAYMENTS
Overview
Online payments in Germany were valued at €66.5bn in 2009
Germany is the sixth largest online payments market globally
Combined credit and debit cards account for the majority of online transactions in Germany, but neither is as popular as bank transfers
Contactless payments are a $68.6bn opportunity in Germany
Germany is the largest market in terms of potential opportunity in Europe, being worth $68.6bn
Public transport provides fewer opportunities in terms of volume, but there are clear benefits from the consumer perspective which could be leveraged
Petrol forecourts are leading the way in Germany's contactless market with Orlen Germany and BP to install contactless terminals en masse
Developments in prepaid cards
GeldKarte dominates the prepaid card market in Germany due to its wide acceptance, high security, and ease of use
Developments in mobile payments
Germany has taken a major step forward in NFC, with Deutsche Telekom's T-Mobile rollout plans
M-commerce in Germany lags behind many markets but has proved popular among certain retailers
APPENDIX
Supplementary data
Definitions
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Methodology
Cards and payments database
FSCI is new to our offering, providing new and valuable insight
Forecasting methodology
Further reading
Ask the analyst
Datamonitor consulting
Disclaimer
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