Business report

Germany Buy Now Pay Later (BNPL) Business Report 2022-2028

Dublin, Nov. 10, 2022 (GLOBE NEWSWIRE) — The “Germany Buy Now Pay Later Business and Investment Opportunities – 75+ KPIs on Buy Now Pay Later Trends by End-Use Sectors, Operational KPIs, Market Share, Retail Product Dynamics, and Consumer Demographics – Q3 2022 Update” report has been added to from ResearchAndMarkets.com offer.

BNPL payments are expected to increase by 44.0% on an annual basis to reach US$90,503.8 million in 2022.

The medium to long term growth story of the BNPL industry in Germany remains strong. The adoption of BNPL payment is expected to grow steadily over the forecast period, registering a CAGR of 28.0% during the period 2022-2028. BNPL’s gross merchandise value in the country will grow from US$62,841.0 million in 2021 to US$397,756.2 million by 2028.

In Europe, buy now, pay later (BNPL) is rapidly becoming the top growth area for Fintech companies in 2022. Many Fintech companies are turning to B2C and B2B BNPL services to expand their service portfolio, diversifying their sources of income. The trends are very similar in the German industry, where the adoption of BNPL has steadily increased in recent years, both among consumers and merchants.

As more and more consumers start using BNPL payment methods, regulators are also paying close attention to the business model. In Germany, regulators have an interest in ensuring that consumers do not go into debt because credit is readily available through BNPL platforms. Therefore, they are likely to focus on transparency and trust, ensuring that borrowers make informed decisions.

As regulators in the European region work to develop a set of standards for BNPL operators, the companies continue to expand their footprint in Germany as they seek to capitalize on growing consumer demand.

Companies enter into strategic alliances to offer more German shoppers flexible and convenient payment options

As German consumers continue to move away from traditional payment methods towards better alternatives, such as BNPL, e-commerce marketplaces are forging strategic alliances with BNPL providers in Germany.

In March 2022, Klarna, the global leader in BNPL, announced that it had entered into a strategic alliance with eBay, an online marketplace. As part of the collaboration, Klarna will offer Pay Later and Financing options on eBay’s German website, giving buyers access to a range of payment methods.

This strategic alliance could spell negative news for PayPal, which used to be a subsidiary of eBay and is still an exclusive payment partner for the online market in many countries. In particular, the launch of the two payment options should take place gradually on the German site of eBay.

The publisher expects the trend of BNPL adoption to continue to grow in Germany over the next three to four years, which will subsequently lead to more such strategic alliances between digital players. .

BNPL B2B players raise financing rounds to invest in acquiring products and customers in Germany

As fintech companies see the BNPL market as the main driver of growth and revenue in Germany, players are raising significant investments from global venture capital and private equity firms to accelerate their growth.

In May 2022, Mondu, a Berlin-based BNPL startup, announced that the company had raised €39.9 million in a funding round led by Valar Ventures. In particular, the financing round is part of the company’s strategy to invest in the acquisition of products and customers as well as to extend services internationally in a short and medium term perspective. The company is expected to expand operations in Austria in the summer of 2022, with more European countries later this year.

Over the next three to four years, more and more businesses are expected to go digital. As a result, the need for B2B BNPL will grow at an accelerated rate globally, and not just in Germany. Therefore, Mondu is expanding its presence in the international market to capitalize on the projected growth in the B2B space.

Regional Players Plan to Expand BNPL Services in Germany Amid Growing Consumer Demand

Adoption of BNPL products has increased significantly among German consumers over the past few years, and this trend is expected to continue in the short to medium term. Therefore, regional players are planning to expand their presence in the European market.

In May 2022, in3, a Netherlands-based BNPL provider, announced that the company planned to expand its operations in Germany by launching the deferred payment option for consumers in the country. Notably, the announcement came after the company raised US$85.3 million in its Series B funding round, which the company plans to expand in the Netherlands and launch in Germany.

As Dutch companies plan to expand and gain market share in Germany, domestic players are also expanding in the Netherlands.

In January 2022, Zinia, the Santander Bank BNPL product, announced that the business was expanding into the Netherlands as it sought to increase its presence in the European market.

The publisher expects this trend to continue over the next three to four years as companies seek to increase market share and revenue growth. This expansion strategy adopted by the companies will further stimulate competition and innovation in the space.

Scope

Germany BNPL Market Size and Spending Structure

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

Germany Buy Now Pay Later Operational KPIs

  • Revenue from buy-it-now and pay-later, 2019 – 2028
  • Buy Now Pay Later Share by Revenue Segments
  • Buy Now Pay Later Merchant Commission, 2019 – 2028
  • Buy now, pay later, missed payment fee revenue, 2019 – 2028
  • Buy Now Pay Later Pay Now and Other Revenues, 2019 – 2028
  • Accounts Buy Now Pay Later, 2019 – 2028
  • Buy Now Pay Bad Debt Later, 2019 – 2028

Germany Buy Now Pay Later Market Share Analysis by Major Players (RatePay, Klarna, Paypal, Afterpay)

Germany Buy Now Pay Later Spend Analysis by Channel: Market Size and Forecast

  • online channel
  • POS channel

Germany Buy Now, Pay Later in Retail: Market Size and Forecast

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

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

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

Germany Buy Now, Pay Later in Leisure and Entertainment: Market Size and Forecast

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

Germany Buy Now, Pay Later in Healthcare & Wellbeing: Market Size and Forecast

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

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

  • Gross Commodity Value Trend Analysis
  • Analysis of trends in the average value per transaction
  • Trading volume trend analysis

Germany Buy now pay later Analysis by consumer attitude and behavior

  • Buy now, pay later Increased sales by product category
  • Buy now Pay later Split spend by age group
  • Buy now, pay later Share of gross merchandise by revenue
  • Buy now, pay later Share of gross value of goods by gender
  • Buy Now Pay Later Rationale for Adoption Gross Goods Value Analysis

Companies cited

  • Rate Pay
  • Klarna
  • PayPal
  • After-payment
  • Divide
  • Cashier

For more information on this report, visit https://www.researchandmarkets.com/r/6udzy1