Digital wallets have become a key tool for German consumers, especially for online shopping and banking. Consider that 71% of consumers in Germany used a digital wallet in some way in the past year.
A PYMNTS Intelligence report, “Digital Wallets Beyond Financial Transactions: Germany Edition,” in collaboration with Google Wallet, reveals insights into how Germans are using digital wallets not just for financial transactions, but for other services like event access, transportation and identity verification. As these wallets expand their functions, younger consumers are leading the way in adoption.
The main use of digital wallets in Germany is for online shopping. Nearly 50% of German consumers used digital wallets for eCommerce transactions in the past year, underscoring an integration of digital payments into the shopping experience. While online purchases are the most common use, digital wallets are also widely used for paying bills, with 33% of consumers using them for this purpose.
The adoption of digital wallets for in-store purchases, however, remains lower at about 20%. According to the report, baby boomers and seniors are among the most active users of digital wallets for online shopping, with 47% reporting usage, which is higher than the 39% adoption rate seen in Generation Z consumers. This data suggests digital wallets are no longer exclusively favored by younger generations but are being embraced across different age groups.
Beyond financial transactions, younger generations are turning to digital wallets for non-financial services. Among Gen Z, 23% used digital wallets for travel-related services such as storing transportation tickets or hotel room keys, while 15% of millennials used their wallets for similar purposes.
This trend is further supported by high satisfaction rates, with 65% of consumers who used digital wallets for storing non-financial credentials reporting being very or extremely satisfied with the experience. While digital wallet adoption for travel and transportation has not yet reached the same level of popularity as online shopping, enthusiasm among younger users suggests potential for expansion in this area.
Digital wallets have not yet gained widespread adoption for identity verification in Germany. While 59% of consumers needed to verify their identity in the past year, this is lower than the global average of 76%. Among those who did verify, 23% did so for banking transactions, with younger generations, particularly Gen Z, more likely to require ID verification. But few use digital wallets for this purpose today. Still, 24% of Gen Z and 19% of millennials are interested in using their digital wallets for event tickets or ID verification in the next three years, indicating room for growth.
While digital wallets are well-established for online shopping in Germany, potential lies in non-financial areas like travel, transportation and identity verification. Younger consumers, particularly Gen Z and millennials, are already leading the adoption of these expanded uses, such as storing transportation tickets or event access credentials.
As these non-financial functions gain traction, digital wallets may become an important tool for managing services beyond payments. As adoption grows, these emerging uses could change how German consumers manage everyday tasks and engage with digital wallet technology in the future.
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