Increasing appetite for mobile contactless payments in Germany


Mobile contactless payments based mobile payments are gradually gaining prominence in Germany, with consumer preference for secure payment services also gaining ground, finds a new report by Timetric.

According to the report, mobile penetration witnessed a healthy growth during the

A chart showing Payment methods in Germany on mobile
Payment methods in Germany on mobile

review period, rising from 128.3% in 2010 to 134.3% in 2014. One of the primary reasons for growth in smartphone usage is the availability of 3G and 4G connectivity. Growing preference for smartphones, especially among the young population, is anticipated to further drive mobile penetration – which is expected to reach 143.4% in 2019 – and growth in m-payment transactions in the country.

A chart showing Smartphone users who purchased via mobile
Smartphone users who purchased via mobile

“Mobile payments based on contactless technology are becoming popular, and banks, mobile operators and retailers are gradually embracing this technology to benefit from mobile payment market expansion,” comments Timetric’s Analyst, Kartik Challa.

To meet the growing demand for contactless mobile payments, retailers are installing POS terminals that accept mobile payments using contactless technology. In April 2015, Vodafone Germany, Deutsche Telekom and Telefónica, along with six major German retailers, launched a program in Berlin to introduce POS terminals that accept mobile contactless payments. Under the program, 2,000 POS terminals across 500 retail outlets will be upgraded to accept mobile contactless payments.

MasterCard, in February 2014, announced collaboration between Deutsche Telekom, Telefónica Deutschland, Vodafone and MasterCard’s subsidiary, Trevica, to offer mobile contactless payment solution for customers of MasterCard’s partner banks. The service allows banks to connect to a single platform instead of connecting to individual mobile operators. Similarly, Vodafone introduced its mobile contactless payment service named SmartPass for Android phone users in March 2014. Volksbank introduced m-payments based on contactless technology in August 2014.

“Such initiatives by banks, mobile operators and retailers are expected to further drive mobile contactless payments and serve the rising consumer preference for secure payments,” Challa adds.

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