Retail Sales Monitor 2/2025: Payment trends and sales development

The German economy was stable in the first quarter of 2025: gross domestic product increased slightly, while lower inflation and higher real incomes boosted consumers' purchasing power. Nevertheless, consumer sentiment remained fragile. Although many customers are planning to spend more again - for example, the propensity to buy rose slightly in May 2025 - there is still a high propensity to save. Many are not fully utilising the additional income for consumption, but are increasingly building up reserves.

In the retail sector, the positive trend from the second half of 2024 continued. For the first time since mid-2022, the sector achieved real sales growth for three consecutive quarters. Mail-order and online retail in particular saw double-digit growth and remains an important growth driver. Brick-and-mortar retail, on the other hand, remains under pressure, particularly in areas such as clothing and consumer electronics.

The focus of the current Retail Sales Monitor is on payment trends in bricks-and-mortar retail and online retail in Germany. The key findings of our analysis at a glance:

• The trend towards cashless payments continues: The market share of card payments in total stationary retail sales rose to 63.5 per cent, while cash only accounts for 33.8 per cent. Since the 1990s, the proportion of cash payments has more than halved.
• Cashback boom despite declining cash usage: Paradoxically, more and more notes are being paid out as cash usage declines. Cashback sales at the point of sale rose from 12.31 to 13.57 billion euros, and nine per cent of all cash withdrawals already take place in retail outlets.
• "New debit" as a growth driver: International debit cards from Visa and Mastercard recorded the highest growth rates and increased their share of sales from 4.1 to 6.9 per cent within one year. However, they are three to four times more expensive for retailers than the classic Girocard, which remains the market leader at 41.5 per cent.
• Mobile payments on the rise: The share of mobile payments in cashless payment processes rose rapidly from 7.49 to 12.85 per cent within a year. One in eight non-cash purchases is now made via smartphone.
• Online payment is dominated by PayPal and credit cards: 96 per cent of the one thousand most visited online shops offer digital wallets, 95 per cent offer credit cards. PayPal leads with a market share of 28.5 per cent, ahead of purchase on account (25.8 per cent). Instalment purchase and financing models such as Klarna are growing strongly and have doubled their share within three years.

The Retail Sales Monitor 2/2025 provides in-depth insights into sales trends in the German retail sector and takes a detailed look at current payment trends. Companies should use these developments to optimise their payment strategy and meet customer expectations - both in-store and online.

Download the Retail Sales Monitor 2/2025 now and get all the insights.