Google launched its payment service in Germany with support from the Commerzbank, Comdirect, Boon by Wirecard and N26. Concurrent Apple Pay and Samsung Pay have yet to enter the German market.
Germany, the 19th country to introduce the service, still largely rely on cash for small retail transactions. The German central bank (Deutsche Bundesbank) reported that 74% of transactions were paid cash last year, with 92% of transaction under 20€ and 25% of transaction over 500€ being paid cash. The same report underlined that 69% of people interviewed had knowledge of mobile payment methods, while only 2% were actively using those. While the German market is not easiest for new payment methods, the opportunity is there for mobile payment to grow in the next years.
Google recognized this opportunity and is set on overtaking its biggest competitor, Apple. Another clear advantage for Google: Android owns 76% of the German smartphone market.
LBBW and Revolut are partnering up with the service, which should soon be available to their clients. Others banks are expected to join in the next months.
Sparkasse, one of the largest banks of the country, has said that it will not be working with Google or support Google Pay.
Merchants accepting Google Pay in Germany
Adidas, Aldi, Hornbach, Kaufland, Lidl, McDonald’s, Mediamarkt, and Saturn are among the officially supported retailers. Many online retailers also offer Google Pay at checkout, including Ryanair, Deliveroo, and ASOS.
Clients can use the mobile payment service in all shops accepting NFC payments. Simply tap the terminal with your smartphone and pay through your registered card.
While most German shops do not have an NFC-enabled terminal, the arrival of Google Pay, and, according to unconfirmed reports, that of its competitor later this year, could help accelerate the conversion to compatible terminals.