According to PayNXT360’s Q2 2021 Global Prepaid Card Survey, prepaid card market in the Germany is expected to grow by 11.5% on annual basis to reach US$ 32,562.8 million in 2021.The prepaid card market expected to grow over the forecast period, recording a CAGR of 10.6% during 2021-2025. The prepaid card market in Germany will increase from US$ 29,200.1 million in 2020 to reach US$ 43,621.0 million by 2025.

For years, cash has played a significant role in the German economy. However, the evolving digital payment landscape and the accelerated push by the global coronavirus pandemic have led to the country’s growing adoption of digital payments. To accelerate this trend further and boost digital payment acceptance methods among merchants in the country, the German government is taking several initiatives such as issuing E-Money Institution (EMI) License to payment processing companies.

Rising e-commerce industry supporting the growth of prepaid card industry in Germany:

Many brick-and-mortar stores have gone online in the country over the last four to eight quarters, primarily because of the global coronavirus outbreak, which resulted in nationwide lockdown. This has led to the growing adoption of e-commerce shopping among consumers in the country, which subsequently boosted the prepaid card market’s growth.

Strategic partnerships between payment and gift card companies are rising:

Rising adoption of prepaid card solutions such as digital gift cards, payment service providers, and gift card providers are building strategic partnerships to launch innovative prepaid gift cards in the German market. For instance,
• In April 2021, Nets, the global payment service provider, and Gifted, the global gift card provider, entered into a strategic partnership to offer merchants and consumers a digital instant prepaid gift card. Under the strategic collaboration, Gifted will offer the market a prepaid gift card solution.