Whether it’s for online shopping, booking a holiday, or settling bills, consumer expectations for fast, secure, and straightforward transactions continue to rise. Gone are the days of waiting and accepting less-than-ideal processes.
Driven by new legislative frameworks, such as the EU Regulation on Instant Payments (IPR), a clear shift is emerging. But what does this specifically mean for the German market? And how can this be interpreted across European markets?
Using insights gleaned from our new Online Payment Trends Report 2025, our expert, and Head of Merchant Solutions at Brite, Manfred Schulz, answers the most crucial online payment questions and explains why the future of payments starts directly with a consumer’s bank account.
Digital wallets are booming, and debit card usage is stable: Where does Pay by Bank fit in the German market?
Manfred Schulz, Head of Merchant Solutions: The stability of the debit card is primarily explained by its integration into digital wallets. Consumers simply add their card to PayPal, Apple Pay, or Google Pay, thereby bypassing the hurdles debit cards face in online use. Germany is a leading market for digital wallet use, and the concept of a cashless society is gaining increasing importance. Consequently, more and more companies are adding digital wallets as an option in their checkout.
The high acceptance of these payment methods is directly attributable to their simplicity. It is precisely this trend towards simplicity that also explains the growing success of Pay by Bank. The crucial advantage is that no additional apps or registrations are necessary – consumers simply use their already installed and trusted banking app on their smartphone.
Although Pay by Bank has not yet reached the market shares of digital wallets, we are seeing a steadily rising usage rate, which is a clear signal of the great potential of this payment method.
What makes Pay by Bank so attractive for businesses and consumers?
Manfred Schulz: The future growth of Pay by Bank will be driven by two essential factors: user trust in their own bank and clear cost advantages for businesses. Pay by Bank is based on a process that consumers already know and perceive as secure: their own online banking. This familiarity massively boosts the acceptance of Pay by Bank. For businesses, this high customer acceptance, coupled with significantly lower transaction costs compared to wallets, is a strong incentive to promote Pay by Bank actively.
Furthermore, Pay by Bank offers remarkable versatility, solving cross-industry challenges for customers and businesses. This is particularly evident in high-value transactions, such as those in the travel industry, where Pay by Bank enables a binding reservation even without a credit card. For large electronics purchases, Pay by Bank is an ideal solution, as ‘Buy Now, Pay Later’ (BNPL) offers do not always apply here, nor can credit checks prevent the purchase at the last moment.
Meanwhile, in fast fashion, which is strongly characterised by BNPL, Pay by Bank also offers a strategically valuable addition. While BNPL often leads to high return rates and thus increased operating costs, the conscious decision to pay by Bank encourages more considered purchasing behaviour. This helps reduce return costs and can even support the achievement of sustainability goals.
What influence might the new Instant Payments Regulation (IPR) have on the popularity of Pay by Bank?
Manfred Schulz: The significant increase in awareness of Pay by Bank can be attributed to two main factors: Firstly, more and more companies are offering this payment type at the checkout because they recognise its advantages – thereby also increasing its visibility among consumers. Secondly, major initiatives such as the European Regulation on Instant Payments and new solutions like Wero are creating media attention and public discussion, which significantly increases the general awareness and understanding of Account-to-Account (A2A) Payments.
Crucially, the regulation not only ensures more media attention but also fundamentally improves the actual user experience. Previously, a bank transfer often involved a waiting time of one to two working days. Thanks to the Instant Payments Regulation, Pay by Bank payments are now processed within seconds –and that’s around the clock, even on weekends.
This is a decisive advantage for both businesses and consumers: businesses receive immediate payment certainty. They can dispatch goods more quickly, while customers receive instant confirmation that their order is successful and their product is secure. This shift from slow to real-time transactions makes Pay by Bank a genuine, fast alternative to credit cards and wallets.
Our report shows that for over 62% of German consumers, security is the most important criterion. How can merchants meet this need?
Manfred Schulz: When choosing a payment method, security and trust are crucial for consumers. New payment methods that consumers have not yet seen or used must first earn this trust. Individual elements associated with high security and familiarity already convey a strong feeling of trust.
This is exactly where we at Brite come in, offering merchants an optimal checkout experience based on a double anchor of trust. The entire payment process is inherently protected by the use of highly secure open banking APIs (PSD2). We make this technical security promise visible to customers by integrating the logos of their main banks—an element that, according to our data, significantly increases the conversion rate. Trust is ultimately solidified in the process itself, as authorisation takes place in the familiar and protected environment of their own online banking.
In this way, Pay by Bank effectively consolidates the initial trust gained throughout the entire payment process, conveying a strong sense of security that leads users to choose the payment method repeatedly.
According to our survey, 75% of consumers would use Pay by Bank again – how do you intercept this?
Manfred Schulz: The high re-use rate confirms: once the hurdle of first-time use is overcome, the method convinces across all age groups. Pay by Bank also breaks the cliché that mainly younger people adopt new technologies. The particularly convincing point for all users is that Pay by Bank simply utilises the already familiar and installed banking app, eliminating the need for new passwords or app downloads.
This is a win-win situation: The expectations of consumers of all ages for secure, fast, and smooth payments are met. Simultaneously, businesses benefit from the payment method’s low costs and reduced operational effort, as payments are completed instantly, and errors from manual inputs are eliminated.
Furthermore, Pay by Bank offers the option to provide refunds within seconds. Thus, Pay by Bank unites consumer expectations and business efficiency requirements, positioning itself as a future-proof standard for digital payment transactions.
Contact our payment experts to get ahead of German consumer preferences
The strategic importance of Pay by Bank is clear. The next step is to unlock this potential for your business and set the course for future growth and cost savings. Contact our team of experts today for an individual consultation.
Or if you would like to learn more about the latest stats and insights into the German online payments market, download our latest report today.
