GERMANY

EUROPE

Germany was one of the first countries to adopt the pan-European scheme SCT Inst in 2017 and usage has been significant ever since, with transaction growth of 218% YOY. Since launch, IPs are already hugely popular with even more potential.

In Germany, as elsewhere in Europe, SCT Inst enables customers to transfer money to accounts at participating banks in the payments network. It supports both individual and business transactions and enables P2P, C2B, B2C and B2B payments directly between accounts via different channels, such as online and mobile banking. There is a maximum transaction limit of €15,000 ($17,183), the standard for SCT Inst.

As of January 2020, there are a total of 1,282 participants, including all major banks, connected to the scheme within Germany. All SCT Inst transactions are processed by clearing and settlement mechanisms (CSMs) including TIPS and RT1, both of which are available to banks in Germany.

Timeline

MARKET DEVELOPMENT

ACCEPTANCE
  • Consumers
  • Banks
  • Merchants
  • Billers

TOTAL PARTICIPANTS

>1,250

Population banking level

2.18

Number of debit, credit and charge cards per adult

87

Index to global average

P

Progressing

Key statistics

2017

IP launch year

Immediate payments types

Single instance, bulk payments

Initiation & authorization

Bank account

ISO 20022

Message standard

Transactions

430M

2019

2.6B

2024f

43%

F5 Yr CAGR

19%

% of adults who have a mobile wallet and have used it in the past year

Share of volumes by payments instrument

Transactions

2019
2024

Spend (USD)

2019
2024
  • Paper-based payments
  • Electronic payments
  • Immediate payments

Immediate payments volume and its share in overall NON-PAPER-BASED transactions, 2018-24f

% of total electronic payments transaction volume

Insight

Of the various countries instituting SCT Inst, Germany presents a market with perhaps the greatest potential for IP adoption and growth.

The market’s current heavy reliance on paper-based payments, combined with lower ownership of payment cards, offers a strong opportunity for IP cannibalization of cash and checks.

Additionally, Germany has a strong network of participants accepting IP which will trigger additional usage. Growth in Germany could be even stronger than current forecasts if payment initiation methods expand to improve convenience and ease of use for consumers and merchants. The introduction by payment fintechs of new integrations with seamless and innovative user experiences will also drive further consumers toward IP adoption.

ACI’s take

Although Germany has seen relatively fragmented implementation of IP up until now, the market is clear that it expects IP to become the new normal.

German consumers and businesses are discerning with new payment options, and look for a clear benefit to be extracted from innovations.

With that in mind, merchants are particularly focused on the cost and payment guarantee benefits of IP, and the largest merchants are already beginning to test the IP waters. Banks need to begin preparing for the rise in digital transaction volumes and get ready for the rigors of IP processing.

Downloads

Evolutions in Payments Issuing

Remain front of wallet with this new eBook, showcasing the top three ways issuers can meet consumers’ expectations by leveraging real-time capabilities.

Download PDF

Achieving Digital Differentiation

Explore how a strong payments risk management strategy can enable financial institutions to protect profitability while creating winning payment experiences and growth.

Download PDF

The P27 Opportunity

As the Nordics continue to set the standard for the future of digital payments, what can the rest of the world learn about successful cross-border payment initiatives?

Download PDF

Building the Foundations of a Real-Time World

Hoping to drive IP growth in your nation? Discover how governments and central banks around the globe have successfully built the foundations for real-time success.

Download PDF

Real-Time Payments Modernization

From real-time payments to enhanced data, payments modernization has many benefits. But before they can be enjoyed, the challenges of modernization must be overcome.

Download PDF

The U.S. Real-Time Opportunity

The time for real-time payments in the U.S. has arrived. Understand how financial institutions across the payments ecosystem can truly capitalize on the opportunity now.

Download PDF

The New Era for Acquiring

Acquirers operate in a complex and challenging landscape. To thrive throughout the next decade, they must have the right capabilities in place — as we reveal inside.

Download PDF