Germany Prepaid Card and Digital Wallet Investment Opportunities Databook 2024: A $50.57 Billion Market by 2028, with Prepaid Payment Cards Overtaking Cash Transactions in the German Market
Dublin, May 24, 2024 (GLOBE NEWSWIRE) — The “Germany Prepaid Card and Digital Wallet Business and Investment Opportunities Databook – Market Size and Forecast, Consumer Attitude & Behaviour, Retail Spend – Q1 2024 Update” report has been added to ResearchAndMarkets.com’s offering.
The prepaid card market in Germany increased at a CAGR of 9.1% during 2019-2023. Over the forecast period of 2024 to 2028, the market is expected to record a CAGR of 10.9%, increasing from US$29.78 billion in 2023 to reach US$50.57 billion by 2028.
The prepaid card industry is poised to grow at a steady rate over the medium term in Germany. The usage of prepaid payment instruments, including prepaid and debit cards, has been increasing consistently over the last few years. This trend is projected to continue further over the medium term, thereby offering support for the industry growth over the next three to four years.
The growing preference for digital payment solutions, like debit cards, has resulted in declining cash transactions in Germany. New players are entering the market to tap into the rising adoption of digital payment methods. This is aiding the competitive landscape in the German prepaid card sector. Overall, the publisher maintains a positive growth outlook for the prepaid card industry in Germany over the next three to four years.
Prepaid payment cards are overtaking cash transactions in the German market, which has been largely cash-dominant in the past
In Germany, the way people make payments has significantly changed due to the impact of the pandemic. Traditionally, Germans have preferred using cash for their everyday transactions, but recent data indicates a shift in this trend. According to Statista, the percentage of transactions made with cash at point-of-sale declined from 55% in 2,017 to 39% in 2022. This change is attributed to the increased preference for contactless payment methods, driven by concerns about the COVID-19 infection.
Debit card transactions, on the other hand, experienced a notable increase, rising from 25% to 39% during the same period. Digital wallet transactions also experienced a slight uptick, moving from 5% in 2,017 to 9% in 2022. Additionally, the use of prepaid cards rose from 2% to 3%. Across Europe, there is a broader trend of digital and card payments gaining popularity, while cash payments remain prevalent in Germany and Austria, as revealed in a report by Deutsche Bank.
Regional firms are seeking to tap into the growing adoption of prepaid cards among German consumers
With the adoption of digital payment methods poised to grow further over the medium term, regional firms are planning to expand their presence in the European nation to aid business growth.
MyMonii, the Denmark-based pocket money app, announced the launch of its services in Germany in 2023. The fintech firm provides families with a mobile app and an optional Visa prepaid card, enabling them to manage their child’s pocket money, while teaching kids how to manage their finances. The Visa prepaid card can be used anywhere Visa is accepted, including in Germany and abroad.
Going forward, MyMonii is planning to expand its presence in more European markets, as the demand for teen-focused prepaid card solutions is growing rapidly across the region. The publisher also expects more regional players to launch their teen-focused prepaid card offerings in the German market over the next three to four years.
Initiatives undertaken by the German Government to aid prepaid card market growth in 2024
To help citizens out with the soaring cost of living, the German government introduced monthly ticket passes for near-unlimited public transport usage in 2022. These travel passes cost just €9. The scheme initially ended in August 2022, however, the government worked on a follow-up pass costing €49 per month in May 2023. The government, in February 2024, revealed that the scheme will continue further throughout 2024.
The strategy behind the extension of the travel pass is part of the government’s plan to cut down carbon emissions, while also helping out its citizens with the cost-of-living crisis. The government, in July and August 2022, sold a significant 50 million passes, saving 1.8 million tonnes of carbon emissions. The fact that the German government has put more funds into the scheme shows how popular it has been in the market. Notably, the extension of the travel pass is, therefore, expected to aid the growth of the broader prepaid card industry in Germany in 2024.
Report Scope
This report provides a detailed data centric analysis of prepaid payment instruments, covering spend through prepaid cards and digital wallets across retail and corporate consumer segments. In addition, it provides a snapshot of consumer behaviour and retail spend dynamics in Germany. With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics.
With over 100 KPIs at country level, this report provides comprehensive understanding of prepaid card and digital wallet card market dynamics:
- Germany Prepaid Payment Instrument Market Size and Forecast
- Germany Digital Wallet Market Size and Forecast
- Germany Digital Wallet Market Size and Forecast by Key Segments
- Germany Digital Wallet Spend by Key Retail Categories
- Germany Prepaid Card Industry Market Attractiveness
- Market Share Analysis by Functional Attributes – Open Loop vs. Closed Loop
- Germany Open Loop Prepaid Card Future Growth Dynamics
- Germany Closed Loop Prepaid Card Future Growth Dynamics
- Germany Prepaid Card Market Share by Key Players
- Germany Prepaid Card Consumer Usage Trends
- Germany Prepaid Card Spend by Key Retail Categories
- Germany General Purpose Prepaid Card Market Size and Forecast
- Germany Gift Card Market Size and Forecast
- Gift Card Market Size and Forecast by Functional Attribute
- Gift Card Market Size and Forecast by Consumer Segments
- Gift Card Market Share Analysis by Retail Categories
- Gift Card Market Share Analysis by Gifting Occasion
- Gift Card Market Share Analysis by Purchase Location
- Germany Entertainment and Gaming Prepaid Card Market Size and Forecast
- Germany Teen and Campus Prepaid Card Market Size and Forecast
- Teen and Campus Prepaid Card Market Size and Forecast by Functional Attribute
- Germany Business and Administrative Expense Prepaid Card Market Size and Forecast
- Business and Administrative Expense Prepaid Card Market Size and Forecast by Consumer Segments
- Germany Payroll Prepaid Card Market Size and Forecast
- Payroll Prepaid Card Market Size and Forecast by Consumer Segments
- Germany Meal Prepaid Card Market Size and Forecast
- Meal Prepaid Card Market Size and Forecast by Consumer Segments
- Germany Travel Forex Prepaid Card Market Size and Forecast
- Travel Forex Prepaid Card Market Size and Forecast by Consumer Segments
- Germany Transit and Tolls Prepaid Card Market Size and Forecast
- Germany Healthcare and Wellness Prepaid Card Market Size and Forecast
- Germany Social Security and Other Government Benefit Programs Prepaid Card Market Size and Forecast
- Germany Fuel Prepaid Cards Market Size and Forecast
- Germany Utilities, and Other Prepaid Cards Market Size and Forecast
- Germany Virtual Prepaid Card Industry Market Attractiveness
- Germany Virtual Prepaid Card Market Size and Future Growth Dynamics by Key Categories
For more information about this report visit https://www.researchandmarkets.com/r/78386u
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