Germany
With 82.9 million inhabitants and high purchasing power (GDP per capita of USD 50,862 in 2021), Germany is the fourth-largest economy in the world, the largest market in the European Union, and a major exporter and importer—ranking 3rd globally in both flows.
Germany is one of the most advanced and developed economies in the world, known for its high level of innovation and strong export orientation. The industrial sector accounts for 30% of GDP, which is considered high compared to other advanced economies. Manufacturing and related services remain central to the German economy, particularly in the automotive, chemical, machinery and equipment, electronics, and ICT industries.
Due to the severe effects of the COVID-19 pandemic, Germany’s GDP contracted by 4.9% in 2020, followed by a 2.9% recovery in 2021. According to the Economist Intelligence Unit (EIU), economic activity in 2022 was projected to grow by 2.5% (a downward revision of 0.7 percentage points from the March forecast), reflecting the impact of the war in Ukraine and its consequences — especially higher energy and commodity prices and disruptions in global supply chains.
Germany offers a wide range of business opportunities in both traditional and high-tech sectors.
Companies aiming to enter the German market should focus on innovation, quality, and sustainability, as these are key factors influencing purchasing decisions among both businesses and consumers.
Germany’s imports totaled USD 1,423 billion in 2021 (up from USD 1,173 billion in 2020). The five main import product groups were:
Germany’s exports reached USD 1,631 billion in 2021 (up from USD 1,386 billion in 2020). The top five exported product groups were:
Top banks
Germany’s three large commercial retail banks (Deutsche Bank, Commerzbank, and HypoVereinsbank) together only control about 15 percent of the retail banking market. The 403 non-profit independent Sparkassen, or savings banks, most owned by local municipalities all across Germany, had a 37 percent share of the retail market in 2016, and a 28 percent market share in local business lending. Germany also has 970 co-operative banks (Raiffeisenbanken, Volksbanken, under DZ Bank AG), a group that forms the second largest banking segment, with a retail marketshare of around 27 percent.Germany’s “three-column” banking system (1. commercial banks, 2. Sparkassen, 3. Raiffeisen/Volksbanken) is now facing several challenges. The number of bank branches continues to drop. But Germany still has a higher number of bank branches per population than most other European nations. A growing banking segment in Germany is made up of the so-called Direktbanken (direct banks, fintechs) that have no branches and offer lower cost banking only online and/or via a smartphone app or a regular telephone. Examples include Comdirect, DKB Cash, 1822direkt, N26, O2 Banking, and netbank.
Deutsche Bank
Home to several of the most important banks in Europe. Two UK based banks - HSBC and Lloyds Banking Group – are not only the largest banks in the country, but also a market capitalization above 30 billion U.S. dollars, while the largest - HSBC - is the largest bank in Europe with a market capitalization of over 124 billion U.S. dollars. In addition, UK based banks Lloyds and NatWest rank as the 10th and 14th largest in Europe. Other large and well-known banks in the United Kingdom are Barclays and Standard Chartered, even though they do not rank among the top players in Europe.
DZ Bank AG
DZ Bank AG (Frankfurt) is a leading German cooperative bank, serving clients locally and globally with a focus on partnership, innovation, sustainability, and financial security. The bank provides corporate banking, investment solutions, and cooperative banking services while upholding strong values and long-term stability.
KfW Group
KfW Group (Frankfurt) is the promotional bank of Germany, focused on financing projects that support economic, ecological, and social development worldwide. KfW promotes sustainable growth, infrastructure development, and innovation financing in line with its public mandate.
Commerzbank
Commerzbank (Frankfurt) is a leading German commercial bank offering tailored corporate banking, retail banking, investment solutions, and financial services. The bank focuses on client-oriented solutions, sector expertise, market competence, and reliability to meet individual and business financial needs.
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HypoVereinsbank
HypoVereinsbank (UniCredit, Munich) is a leading German bank and part of the UniCredit Group, serving over 15 million customers across Italy, Germany, and Central & Eastern Europe. The bank offers corporate banking, retail banking, investment solutions, and financial services, leveraging UniCredit’s European network to provide innovative products and personalized services.
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Landesbank Baden-Württemberg
Landesbank Baden-Württemberg (LBBW), based in Stuttgart, Germany, is a leading universal bank serving corporate, retail, and institutional clients. LBBW offers corporate banking, retail banking, investment solutions, and financial services across Baden-Württemberg and global markets.
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Bayerische Landesbank
Bayerische Landesbank (BayernLB), based in Germany, is a leading German commercial and development bank. It serves as the exclusive service provider for Bavarian savings banks in subsidized loans and holds a prominent position in the foreign notes, coins, and precious metals market. BayernLB offers a wide range of corporate banking, investment solutions, and financial services across Germany.
Landesbank Hessen-Thüringen
Landesbank Hessen-Thüringen (Helaba), headquartered in Frankfurt and Erfurt, is a leading German commercial and regional development bank with total assets of €219.3 billion. Helaba serves as a central bank partner for Sparkassen, offering corporate banking, development finance, and international financial solutions. With over 6,000 employees across 18 locations, Helaba supports clients nationally and globally, combining reliability, innovation, and regional development expertise.
NRW.BANK
NRW.BANK, based in Düsseldorf and Münster, is the promotional bank of North Rhine-Westphalia with total assets of €155.8 billion. It supports the state’s economic, housing, and infrastructure development through promotional loans, advisory services, and sustainable financing solutions. Focusing on sustainability and low-emission economic transformation, NRW.BANK primarily serves house banks and promotional intermediaries while collaborating with cooperative, private, and savings banks under a competition-neutral approach.
Norddeutsche Landesbank
Norddeutsche Landesbank (NORD/LB) is a leading German commercial bank offering a wide range of banking and financial services, including structured finance, energy and infrastructure financing, ship and aircraft finance, commercial real estate finance, capital markets services, and private and commercial banking. NORD/LB serves corporate clients, institutional investors, and private customers, providing innovative financial solutions across Germany and Europe.
N26
N26 is a leading German digital bank offering fully online banking services across Europe and the US. Known for its mobile-first approach, N26 provides checking accounts, savings tools, personal loans, and insurance with low fees, real-time notifications, and international money transfers. It supports cashless payments, fintech integration, and seamless digital banking, making it a top choice for tech-savvy customers seeking convenient, transparent, and innovative banking solutions. Regulated in multiple regions, N26 ensures secure mobile banking, efficient financial management, and enhanced user experience for personal and business clients.
Top payment methods
Germans are among the most open to international shopping consumers in the world, with over 50% of online purchases made on foreign websites. Despite this willingness, the country is also one of the most fragmented markets when it comes to payment methods. Credit cards, such as SEPA direct debit, SOFORT and Giropay, account for the majority of online transactions. In retail (specifically in the fashion market), another popular payment method is open invoice, where a third party company pays for products and services and collects payment from the buyer after delivery.
Perhaps due to the preference of Germans who are more reticent to keep physical control over their spending, cash remains popular, although the girocard payment method is almost ubiquitous, with 68 million users. In light of covid-19, 45% of contactless payments are made using this local method, with many retailers, large and small, implementing girocard payments to encourage contactless payments. Source: Statista – Share of online stores that offer the main payment methods in Germany in 2020
Paypal
PayPal, a leading online payment solution, serves over 400 million active users worldwide in 200 countries and supports 100+ currencies. In France, PayPal is one of the most popular digital payment methods for online shopping, trusted for secure, fast, and convenient online payments.
Visa
Visa is the world’s largest global card network by transaction value, accepted almost everywhere. It’s known for secure, fast, and reliable payments, positioning itself as “the best way to pay and get paid by everyone.”
Maestro
Maestro is a debit product within the Mastercard offering. Maestrocards can be used for payments in stores and to withdraw cash fromATMs. This payment method requires electronic online authorizationfor almost all transactions, although Mastercard's rules allowminimum limits to be set only for Maestro EMV chip transactions.
SEPA
SEPA (Single Euro Payments Area) Direct Debit was introduced by the European Payments Council to create a standardised payment infrastructure within the EU. With SEPA Direct Debit, businesses can process one-off or recurring payments for EU customers, making it a key payment method for businesses looking to expand across Europe. Founded in Germany in 2013, N26 is the first 100% digital bank to have beengranted a full German banking license from BaFin. The advantage of N26 is that the whole process can be done online, in a few minutes, without the need for proof of income to open the account. However, it is necessary to have proof of address in one of the countries where it operates, a valid passport, and a European residence card valid for one year.
Paysafecards
PaysafeCard is a prepaid, cash-based online payment method available in approximately 50 countries as of 2024. Launched in Austria in 2000, PaysafeCard uses vouchers with a 16-digit PIN that allow users to fund online transactions securely without a bank account or credit card. In many countries, users can create a my PaysafeCard account to manage balances, upload codes, and track transactions. Trusted by partner webshops worldwide, PaysafeCard offers a safe, anonymous, and convenient payment solution for online shopping, gaming, and digital services.
Klarna
Klarna is a popular Buy Now Pay Later (BNPL) payment solution available in 19 countries, widely used by online stores, retailers, and global merchants. Shoppers can choose to:
Klarna performs risk checks before approving payments, assumes the full fraud risk, and pays merchants up front, making it a secure and reliable e-commerce payment method.
Concluding remarks
In Germany, there are several payment methods available, including:
Cash
Cash (Barzahlung) – It is still common in Germany to pay cash in stores, restaurants and other establishments.
Bank transafer
Bank transfer (Überweisung) – Bank transfers are common in Germany and many stores accept this payment method. However, the transfer can take a few days to complete.
Debit Cards
Debit card (EC-Karte) – The debit card is widely accepted throughout Germany. It is linked to a bank account and the amount of the purchase is deducted directly from the account.
Credit card
Credit cards (Kreditkarte) are accepted in many stores, restaurants, and hotels in Germany, but they are not as widely used as in other countries. Some establishments may charge an extra fee for credit card payments. While Visa and Mastercard are commonly accepted, it's advisable to carry cash for smaller transactions, especially in more traditional or rural areas of Germany.
PayPal
PayPal – PayPal is a popular option for online shopping in Germany. Users can link their bank account or credit card to their PayPal account to facilitate online payments.
Apple Pay and Google Pay
Apple Pay and Google Pay – These mobile payment methods are becoming increasingly popular in Germany, allowing users to pay with their smartphones at establishments that accept these options.
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