Germany Buy Now Pay Later Business Report 2024: To Save Consumers from BNPL Debt Traps, e-Commerce Providers are Partnering with Startups to Launch a Save Now Pay Later (SNPL) Service - ResearchAndMarkets.com

The "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 - Q1 2024 Update" report has been added to ResearchAndMarkets.com's offering.

BNPL payments are expected to grow by 14.2% on an annual basis to reach US$ 62.27 billion 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$ 54.55 billion in 2023 to reach US$ 96.72 billion by 2029.

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.

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, the publisher expects the buy now pay later market to grow at a significant rate over the medium term in Germany.

To tap into the high-growth market, new players have also entered the industry in 2023. Going forward, the publisher expects more firms to launch their innovative products to cater to the growing demand among Germans. This will drive the competitive landscape and support innovation in the sector. Overall, the publisher maintains a robust growth outlook for the BNPL industry over the next three to four years in Germany.

The buy now pay later sector is growing at a strong rate amid higher adoption in the German market

With rising interest rates and inflationary pressure, consumers are flocking towards flexible payment solutions like BNPL at an accelerated pace in Germany. According to a report from Schufa, the German credit rating agency, there has been a 30% increase in BNPL usage in 12 months. The adoption, specifically, is much higher among young generation shoppers in Germany.

In 2022, Schufa has reported over 9.1 million contracts, which is a 30 percent increase compared to 2021. Although most people are managing to repay these loans on time (97.9%), the increasing cost of living is making it harder for individuals to meet their financial commitments. The adoption of BNPL is growing faster in the smaller loan category. According to the report, more than 3.8 million of the 9.1 million contracts amounted to under 1,000 euros.

This shows that an overall 42% of the BNPL loans fall under the small loan category in Germany.

In 2024, the adoption of BNPL loans is expected to further increase in the German market, due to a persistent decline in disposable income amid a higher inflationary environment. This trend will support the growth of the industry over the medium term.

Germany-based fintech firms are entering the market with their BNPL product launches

With the industry projected to record strong growth over the next three to four years, more and more fintech firms are seeking to tap into the growth opportunity. These firms are launching their products, while also driving the competitive landscape in the sector.

Unzer, known for its payment and commerce solutions, launched a new buy now pay later product upaylater in 2023. This product combines invoice, installment payment options, and direct debit into a single interface, making it more convenient for merchants to offer BNPL services that customers are increasingly asking for. Unzer has a decade-long history of providing basic invoice, installment, and guaranteed direct debit payment methods, and now it aims to further expand its presence in the BNPL market.

Going forward, the publisher expects more such fintech firms to launch their innovative BNPL product offerings in the German market, subsequently driving the competitive landscape and market growth over the next three to four years.

To save consumers from BNPL debt traps, e-commerce providers are partnering with startups to launch a save now pay later service in Germany

The adoption has been growing at a rapid rate among young generation consumers, which in turn, is also driving the problem of delinquencies and debt trap. Consequently, to drive responsible consumption, e-commerce providers are forging strategic partnerships with innovative startups to launch save now pay later products in the market.

Zalando, in 2023, entered into a strategic collaboration with Savrr to launch the save now pay later payment option on the e-commerce platform. The counterpart of buy now pay later, save now pay later aims to drive more responsible consumption among shoppers.

The widening distribution of save now pay later products, through such strategic collaborations, can dampen the growth of the buy now pay later industry in the German market over the medium term. The BNPL payment industry in Germany has recorded strong growth over the last four quarters, supported by increased e-commerce penetration.

Key Attributes:

Scope

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

For more information about this report visit https://www.researchandmarkets.com/r/64mt25

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