Card payments are now the predominant form of electronic payment in Germany and have become even more prevalent recently. Major drivers are contactless technology and changes in consumer behaviour, in particular during the pandemic. With a market share of 83 %, debit cards are the most widely used payment cards in Germany. International card schemes such as Visa and Mastercard are growing in significance in this segment since they can be used abroad, for e-commerce and for mobile payments using a smartphone or a smartwatch; aside from that, direct banks are also increasingly issuing them as the standard payment card. While the use of credit cards has tended to fall in recent years, the number of debit cards in circulation and the number of transactions carried out using them has risen sharply. On the whole, this development illustrates a significant rise in consumer demand for cashless payment instruments in everyday life. A recent survey of members of the general public commissioned by the Bundesbank shows that the majority of the population supports a legal obligation to accept cashless means of payment in order to increase freedom of choice when making payments.

Card payments are widely accepted in the retail sector. Larger businesses generally accept cashless payment methods more frequently than their smaller counterparts. According to a Bundesbank survey conducted in 2025, the girocard (previously known as the EC card) is the most widely accepted form of cashless payment. With the girocard, Germany still has its own major national card network, unlike many other countries. While cashless payment methods are becoming more widely accepted, Germany still has some catching up to do with the rest of Europe, especially in the services sector and among small businesses. 

Not only in Germany, but across the entire euro area, market dynamics between national and international card schemes are a defining feature of the payments landscape. Although international providers can use their size and networks to achieve great economies of scale and to gain market share, the girocard remains the most widely used and simultaneously most cost-effective cashless payment method at retail outlets. For reasons of resilience and strategic autonomy, national card schemes are an essential pillar of the European payments ecosystem.

A major trend is the use of mobile devices such as smartphones or smartwatches to make payments (known as mobile payments), which are increasingly replacing physical cards. Mobile payments, based primarily on digitalised cards in wallets, are expanding rapidly. Integrating the girocard, the most widely used cashless payment method in Germany to date, into mobile payment solutions could sustain the attractiveness of this payment method for retailers and consumers in the long term, too.

In parallel, real-time transfers are increasing in significance and offer new opportunities for retailers and consumers, especially given their lower costs and faster payment processing. Solutions such as these can reduce dependence on non-European providers, boost competition and broaden the range of choices available to consumers and retailers. In addition, a digital euro could also further strengthen the range of payment services on offer and ensure pan-European coverage. It is already becoming apparent that, in future, payments in Germany will be increasingly varied, digital and mobile.

In Germany, the majority of day-to-day electronic payments are made using cards. Their growing relevance is highlighting the need for greater functionality and operational resilience in the underlying infrastructures. The issue of European strategic autonomy in the payments ecosystem is also becoming increasingly important. The market share of card-based payment methods has grown steadily in recent years; 1 they are used for payments at both point of sale and in e-commerce. The main driving forces behind this trend have been the increased use of contactless payment methods and changes in consumer behaviour as a result of the pandemic. Preference for card payments has continued post-pandemic, indicating a permanent shift. The high level of market penetration of card payments also implies that outages or disruptions have the potential to significantly impact the economy and society. This underlines the relevance of robust and technologically sound European electronic payment systems. Since more and more customers are opting for card-based payment methods, the costs incurred by merchants through the acceptance of cashless payments are becoming more of a focus.

While card payments are quick and convenient for consumers, behind the scenes there is a complex technical and economic set-up. Payment cards can be subdivided into debit and credit cards. Purchases made using a debit card result in the customer's current account being charged immediately. By contrast, credit cards facilitate delayed payment for purchases. This usually happens at the end of the month for credit cards that do not offer a credit facility, known as charge cards, or in instalments for credit cards that offer a credit facility, known as revolving cards. Card networks (also known as schemes) are of central importance to the functioning of card payments. They define the technical standards, procedural rules and fee models and usually fulfil key functions in the technical processing and settlement of card payments. Germany’s national market is dominated by the girocard, while international schemes such as Mastercard and Visa enable cards issued in Germany to be accepted abroad. The interaction between the parties involved usually occurs within the four-corners model that defines the interplay between cardholders, merchants, card issuers and payment processors (acquirers). While cardholders and merchants initiate and accept transactions, issuers and acquirers conduct the technical and financial processing, including authorisation and settlement, by means of their technical integration with relevant card networks and payment systems. This collaborative model ensures standardisation and efficiency, yet at the same time requires a precisely defined regulatory framework and harmonised interoperability standards to ensure that processes function smoothly and securely. 

This article aims to provide a comprehensive overview of the German card payment market and how it is evolving as a result of technological innovations and changing consumer habits. It examines both market shares and usage patterns as well as structural developments in order to increase transparency about the interaction between the parties and processes involved. The findings are intended to facilitate a better understanding of market structures and mechanisms to enable a thorough assessment of current and future developments in German payment transactions. 

In Germany, debit cards are by far the most widely used payment cards. The number of debit cards issued has risen steadily in recent years and attained a high level of market penetration, attributable especially to the widespread use of the girocard. The results of the Bundesbank’s study on payment behaviour in 2023 showed that around 97 % of the population owned at least one debit card. 2 Approximately 196 million payment cards issued by German payment service providers were in circulation as at 31 December 2024. This means that around one-quarter (26 % 3 ) of all cards issued in the euro area were issued by institutions registered in Germany. Debit cards clearly outstrip credit cards in the German card market. At the end of 2024, they accounted for around 83 % and that share has continued to rise in recent years. While approximately 111 million debit cards were issued by German payment service providers in 2018, by 2024, this figure had risen to 162 million, which corresponds to an average annual growth rate of 6.5 %. The share of credit cards decreased from 24 % to 17 % during the same period. 4

Debit cards belonging to the international card schemes Visa and Mastercard are accelerating the shift towards debit cards. While originally the core business of Visa and Mastercard (also referred to in the following as international card schemes, or ICSs) focused solely on the credit card market, since 2019 ICSs have also been offering debit cards – Mastercard Debit and Visa Debit – for payments within Germany. Before that, domestic card payments were almost exclusively covered by the girocard. In order to enable payments abroad and to prevent acceptance issues, ICS debit systems have been integrated with girocards for some time now (a set-up known as co-badging). Initially, Maestro (Mastercard) and V-Pay (Visa) co-badges were used, which function at point of sale. Girocards are now also being issued together with Mastercard or Visa Debit. Girocards without a co-badge can still virtually only be used at the physical point of sale, whereas ICS cards can also be used for purchases made online. 5 These developments have certainly played a part in the tendency for some banks to now provide their customers with a Visa or Mastercard debit card as the standard payment card and to only make girocards or credit cards available for an additional fee. The trend in favour of ICS debit cards is also evident in other European countries that have a national card scheme and is having a corresponding effect on market shares. 

The rise in the number of debit cards in circulation is also reflected in the number and value of debit card transactions. Between 2018 and 2024, the value of debit card transactions in Germany rose from just under €206 billion to almost €420 billion. During the same period, the number of transactions per year increased from 3.9 billion to 10.9 billion. This meant that the average amount per payment transaction fell noticeably from just over €52 to €38 for debit cards and from €78 to €69 for credit cards. The rise in the number of transactions and the lower average amount per transaction underline how card payments have become increasingly prevalent in day-to-day life and are now also being used for smaller amounts more and more frequently.

With regard to the card-issuing institution, the German card market is dominated by savings banks, while the significance of direct banks has increased noticeably in recent years. Based on the number of transactions, at around 40 %, the Sparkassen-Finanzgruppe accounts for the largest share of card payments, followed by credit institutions (excluding direct banks) and cooperative banks. As expected, the card payment market therefore correlates strongly with the distribution of current accounts in Germany by category of institution. 6 On the whole, market shares for card payments have remained broadly stable over the past six years. However, direct banks in particular reported noticeable growth: their share of the card payment market rose from 11 % in 2018 to 17 % in 2024. Direct banks frequently issue one of the ICS debit cards with a current account. 

Despite the growing prominence of international card schemes in Europe, the girocard remains the most widely used card scheme in Germany. However, the girocardʼs share of the market is shrinking. At the end of 2024, the girocard's revenue-based share of the market in Germany stood at just under 72 % of all debit card payments. Although the number of girocard transactions has been rising for years, with significant increases of 12.8 % in the number of transactions and 5.3 % in value between the beginning of 2023 and the end of 2024, its market share fell by more than 7 percentage points in this period. 7  An analysis of the European payments area reveals a similar picture. Only 7 of the 20 member states of the euro area have their own national debit card scheme. 8 As discussed above, various market dynamics have helped to consolidate the market position of international providers in recent years. However, an analysis of the card market, including credit cards, across the entire euro area, and so including the 13 euro area countries that do not have a national card scheme, reveals that more than two-thirds of the transaction volume is attributable to non-European card providers (including Mastercard, Visa, American Express, China Union Pay and Diners Club) and only around one-third to national card schemes. The combined market share of ICSs in the euro area increased from 61 % in 2022 to 69 % in 2024. 9

The existence of national card schemes is not only desirable for reasons of operational resilience and strategic autonomy, but can also be beneficial for economic reasons. Efficient and cost-effective solutions for payment transactions are based on network effects and economies of scale. First, added value for users of a payment solution increases in line with the degree of acceptance. Second, economies of scale reduce costs. Even if globally operating ICSs can achieve significant network effects and economies of scale, from which they can benefit with their presence in virtually every European market, there are good reasons to maintain a national card scheme in Germany. First, the girocard is by far the most widely used and accepted payment card in Germany, thus indicating a high degree of network effects as well. In addition, the girocard is the most cost-effective cashless payment method for retailers, in marked contrast to ICS debit or credit cards. This primarily reflects the girocard's more decentralised structure, which ensures competition between different providers of processing and settlement services. Moreover, the card markets in euro area member states that do not have a national card scheme exhibit a higher degree of market concentration. This tendency can be observed irrespective of whether it is measured by the number of transactions or the value of the transactions. While a certain degree of market concentration is to be expected and can be beneficial from an economic perspective as a result of network effects and economies of scale, it may also lead to a lower intensity of competition. Finally, having national or European payment solutions is also a matter of operational resilience and national or European sovereignty.

There is controversial debate as to the extent to which high market shares enable non-European providers to exploit their market position. Given their widespread networks, the major international card schemes have considerable bargaining power over the other parties in the four-corners model – especially over merchants and their payment processors (acquirers). Merchants often find themselves in an asymmetrical position: because ICS cards are used by a broad customer base, merchants risk losing revenue if they do not accept this payment method. In many cases, the potential losses caused by non-acceptance outweigh the additional costs incurred as a result of higher fees. In recent years, scheme fees, which are fees for using card infrastructure, have risen considerably, especially for international card schemes. 10 In this context, merchants’ associations have criticised the lack of transparency in fee structures, casting doubt on the justification and appropriateness of the increases. 11 The card schemes counter this by referring to increased expenditure caused by regulatory requirements, technological developments and new market participants, among other things. 12 Irrespective of how these arguments are evaluated, the major non-European card schemes have been among the most profitable companies in the payments sector for years – both on a global and European level. 13 While this is hardly surprising, given that their international reach and dense networks facilitate substantial economies of scale and intra-network advantages, their strong market position is also likely to further reinforce existing market entry barriers. 14  Aside from this, the existing regulation in many cases prohibits merchants from charging consumers additional costs depending on their choice of payment method. As a result, it is difficult for new, more cost-effective payment options to gain market share.

When it comes to card acceptance, the decision to accept card payments is influenced not only by cost factors, but also by political and regulatory measures. Although payment transactions are usually free of charge for customers, the merchant incurs a range of fees, which, like any other costs, are factored into pricing. If accepting cash, for example, cash holdings need to be managed or, in some cases, cash transportation needs to be financed, while payment service providers charge fees from merchants for cashless transactions. In addition, there are certain fixed costs associated with accepting payments, such as the acquisition of cash register systems or card terminals. In order to provide an overview of the costs of accepting different means of payment, the Bundesbank published a study on the costs and acceptance of means of payment in the retail sector in November 2025 (see the supplementary information below). 15 However, it is not enough to just consider costs when analysing the decision to accept or reject a payment method. This is because merchants may also decide to accept more expensive payment methods if many customers demand them. Besides costs and demand, the range of accepted payment methods is also influenced by political, regulatory, or market-driven initiatives. Euro banknotes and coins are legal tender in the euro area, which means that retailers are obligated to accept cash payments in euros to fulfil payment obligations. 16  As part of the potential introduction of a digital euro, it is also envisaged that its acceptance will be mandatory for certain parts of the retail sector. 17 In addition, there are initiatives by the private sector to promote cashless payments. 18 Since there are no centralised statistics on the acceptance of cashless payment methods, it is necessary to combine different data sources and survey approaches to gain an understanding of how widely card payments are accepted.

According to the Bundesbank's study on the costs and acceptance of payment methods in the retail sector, the girocard is the most widely accepted cashless payment method at the point of sale. By contrast, international debit and credit cards tend to be accepted less frequently overall. 19 The study found that cash was accepted by almost all of the retailers surveyed (98 %), 20 while 73 % accepted the girocard. Around half of the retailers accepted Visa and Mastercard debit and credit cards, by contrast. Larger retailers tend to accept cashless payment methods more frequently, alongside cash. For instance, more than 90 % of retailers with at least ten employees accepted the girocard, while the corresponding figure for small retailers (fewer than ten employees) was only 70 %. A similar picture emerged for Visa and Mastercard debit cards and credit cards, which, on the whole, were accepted less frequently than the girocard. Again, clear differences were observed depending on the size of the retailer: less than half of small retailers accepted these cards, while the figure was significantly higher for larger merchants.

Consumer surveys suggest that the acceptance of cashless payment methods has grown in recent years. Regular studies conducted by the Bundesbank on payment behaviour 21  have also surveyed the acceptance of payment methods from the consumer perspective. In 81 % of the transactions recorded in the 2023 study, paying with a cashless payment method was possible. This marks a sharp increase compared with 2021, which is primarily due to higher acceptance rates in the gastronomy and services sectors; it may be related to the fact that the pandemic has brought about a permanent shift in payment behaviour. Nevertheless, there is still room for improvement in terms of acceptance. In other European countries such as the Netherlands, Finland and Luxembourg, for example, acceptance rates are 95 % or higher. 22

The Bundesbank is committed to cash and people’s freedom of choice when making payments. Members of the public should always be able to pay according to their preferences. The Federal Government is also committed to people’s freedom to pay as they choose. The current coalition agreement stipulates that, in future, a digital payment option should always be accepted alongside cash. 23 Against the backdrop of the Federal Government’s initiative, the Bundesbank conducted a survey of the general public’s experience of the acceptance of cashless payment methods, as well as their views on an obligation for retailers to accept cashless payment methods. 24 The representative survey of 4,048 randomly selected individuals carried out in June 2025 found that, despite an increase in acceptance, just over half of the respondents had experienced being unable to pay using a cashless method on one or more occasions in the previous months, though they had wanted to do so. Drawing on the proposal in the coalition agreement, respondents were also asked whether there should be an obligation to accept cashless means of payment; just under three-quarters of the respondents would “expressly” or “generally” support the proposal. Half of these respondents would also support a general obligation to accept such payments, whereas the remaining half stated that the obligation should only apply to payments above a certain value and/or to retailers above a certain size. Consequently, the various findings of the survey indicate that cashless payment methods are not yet fully accepted in all situations in Germany.

The trend towards mobile payments has already become part of everyday life, and could become even more prevalent in the future. Cards are the dominant form of electronic payment today. However, the market is changing rapidly and mobile payments are a good example of the momentum in the market. The share of card payments initiated via mobile devices at the physical point-of-sale is rising sharply in Germany, climbing from around 5 % in the first half of 2022 to just under 16 % in the second half of 2024. One possible reason for this is the speed of the payment procedure: in Germany, the fastest way for customers to pay at the checkout is via a smartphone or a smartwatch. These payments take 14 seconds on average. 25 This means that there is a movement not only away from cash payments and towards cashless payments, but also away from physical cards and towards mobile devices. From a purely technical point of view, however, most mobile payment transactions currently involve a card payment. This is because cards can be stored digitally in digital wallets on mobile devices. Technical communication between the digital card and the card reader is made possible via the device’s contactless (NFC) interface. Hence, while the payment is initiated using a mobile device, the underlying infrastructure for processing the payment is essentially the same as for a payment made using a physical card. Similar trends can also be seen in other countries; for example, the share of mobile payments in the Netherlands increased from 9 % in 2020 to 34 % in 2024. 26

Besides card-based wallets, account-based methods based on real-time transfers are also becoming more and more widespread. Instant payments facilitate transfers between current accounts (account-to-account, A2A) virtually in real time, which means that payments are credited to the recipient’s account in a matter of seconds. Since the Instant Payments Regulation 27 entered into force, all SEPA payment accounts are now available for transfers as instant payments. Furthermore, payment service providers are required to offer this service to their customers at no extra charge. Due to their widespread availability, new applications based on real-time transfers are emerging, particularly in the area of mobile payments – both for person-to-person (P2P) payments and at the physical point of sale (POS) or in e-commerce. QR codes are often used for this purpose. In a number of European countries, similar private-sector solutions for P2P payments have already been established, aiming to expand their usage in both e-commerce and in the physical retail sector. Examples include Bizum in Spain and Swish in Sweden. In addition, systems based on instant payments usually allow for lower fees for merchants; this is because the instant settlement eliminates the need for payment guarantees by the card issuer. Beyond Europe, payments based on instant payments systems, often in combination with QR codes, are already an integral part of day-to-day life (see the supplementary information on “A2A apps around the world“).

One example of a pan-European payments solution based on instant payment infrastructures is the payments app Wero. This application, developed by the European Payments Initiative (EPI) – an alliance of banks and payment service providers from several European countries – was launched in July 2024. As with many solutions based on real-time payments, the initial focus was on payments between private individuals. The range of functionalities is currently being expanded incrementally, initially to payments in e-commerce and subsequently at the POS. A joint initiative recently undertaken by EPI and the European Payments Alliance (EuroPA 28 ) aims to strengthen interoperability between national European payment systems. The Bundesbank particularly welcomes the development of pan-European payment solutions by the private sector. This expands the range of payment methods, reduces dependence on ICSs and thus strengthens competition in a market that is set to continue to grow in the future.

The digital euro has the potential to expand the range of available payment options by giving everyone access to secure central bank money, even in a digital world. Designed as an all-in-one European payment solution, it will enable members of the public to easily make payments anytime and anywhere in the euro area. Provided that the legal basis is established by then, the digital version of euro cash is expected to be issued as of 2029. 29 Similar to cash, the digital euro would offer a high level of privacy, employ European infrastructure and include offline functionality. The digital euro could also complement private-sector initiatives, which could benefit from its European reach and widespread acceptance, as set out in the draft legislation.

The development and widespread adoption of pan-European payment methods are making an important contribution to strengthening the strategic autonomy and operational resilience of the European payments ecosystem. From the point of view of European sovereignty, it is fundamentally desirable to have uniform European payment methods with broad market coverage available throughout Europe. European private-sector solutions and the digital euro could help to reduce Europe’s dependence on international providers, thereby safeguarding its operational capacity in the area of payments. From an operational resilience point of view, too, the digital euro and European payment solutions, which process payments using dedicated European technical infrastructures, would be a meaningful addition. In the event of disruptions or outages in the existing card infrastructure, they would provide an alternative, thus contributing to the maintenance of critical payment flows. Thanks to its offline functionality, the digital euro could also be used during power or internet outages. Moreover, the use of alternative methods extending beyond the scope of P2P payments could intensify competition among providers of payment solutions – for instance, if they are applied in e-commerce or in retail stores. In the medium term, this could lead to more favourable conditions for retailers and greater freedom of choice for consumers. All in all, pan-European payment methods can therefore strengthen both operational resilience and strategic autonomy as well as the operational capacity of the European payments sector. 

Payments are becoming more diverse, embedded and mobile. Mobile applications are set to become even more important– to stay relevant, stakeholders in the payments sector need to adapt their products and services to meet consumer demand. The mobile device is increasingly becoming the focal point of many people’s digital everyday lives and it is also being used more and more frequently to make payments. Mobile payments cover all payment situations: payments to friends and acquaintances (P2P), on the internet (e-commerce) and at the checkout (POS). In addition, payment functions can be integrated into mobile applications, for example, in a retailer’s app. For customers, the underlying infrastructure for processing payments is increasingly receding into the background. This is because, regardless of whether a payment is processed via card scheme infrastructures, as an instant transfer or using the digital euro, the customer interface is a mobile device. Major providers’ advertisements in public spaces demonstrate that the “war of wallets”, over which digital wallet customers use the most, has already begun. However, the high level of competition between different payment methods could also open up significant opportunities for financial service providers and banks. One option for the future could be the integration of popular and established card payment methods such as the girocard into payment apps like Wero. This would also ensure that Germany’s most widely used debit card remains attractive to consumers and retailers in the longer term. It would also enable payments to be more closely linked to the core product, a current account. From a retailer’s perspective, it is also essential to have common acceptance standards that can be used by both private-sector solutions and the digital euro, to prevent the unnecessary duplication of investment. Aside from the question of who the winners and losers are in these new market dynamics, it is certain that payments are set to become increasingly diverse, individualised and, most importantly, digital. All of these aspects help to give consumers freedom of choice. Solutions that are “made in Europe” also support Europe’s strategic autonomy.

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