The German digital wallet market was valued at US$5.318 billion in 2020.
This is one of the major markets for digital wallet vendors operating in this region. The lucrativeness of this market is anticipated to remain high throughout the forecast period, which will continue to support the growth. The market growth is being shaped by the presence of a fairly large smartphone user base, which is witnessing a continuous expansion on account of the high spending capacity of people in this country. Gross National Income is a relatively reliable indicator of the standard of living of people in an economy, and growth in GNI per capita can be seen as a driver for sales of various goods in the country. Data from the World Bank Group showed an impressive increase of more than 99% in GNI per capita in Germany between 2002 and 2018. According to the data, the Gross National Income per capita (calculated by Atlas Method) stood at US$23,620 in 2002, and the number had risen to US$47,110 in 2018. The period witnessed the growth of various industries, including consumer electronics, in this country, which drove the market for smartphones here. Not just this, but between these years, internet penetration in this country also gained immense momentum. While only 48.82% of the German population had access to the internet in 2002, internet access spread to around 90% of the total German population in 2018 (Source: The World Bank Group). The combined effect of the country’s strong position across these two sectors is driving the growth of the e-commerce industry in this country, thus boosting the demand for digital wallets among customers. Lucrative offers by digital wallet vendors are attracting many new customers towards them, which is also supporting the market growth. A decisive blow by the COVID-19 pandemic to the country is anticipated to catalyze this growth moving ahead. Stringent social distancing regulations enforced by the government are expected to continue shaping this market over the projected period. As they drift from conventional cash transactions to digital wallets continues, solid market growth is expected over the forecast period.
Germany’s digital wallet market has been segmented on the basis of devices and applications. By device, the market has been segmented as PCs/laptops and smartphones. By application, Germany’s digital wallet market has been classified into money transfer, recharge, movie booking, food ordering, and others.
Key Developments in the Market:
COVID-19 positively impacted the German digital wallet market. Amid the surge in active cases across the globe, multiple governments have enforced lockdown and social distancing measures to slow down the spread of infection. This augmented the prevalence of digital shopping and caused many shoppers to move toward contactless digital wallet technology. Furthermore, the growing number of digital payments is further propelling the penetration of digital wallets in the region.
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