The mobile payment market in Germany is characterized by a high degree of fragmentation and little collaboration among the vast number of different participants,The mobile payment market in Germany is characterized by a high degree of fragmentation and little collaboration among the vast number of different participants, both within the provider and merchant groups, and across these groups. Apart from a few exceptions, providers have started their own initiative with different technologies, but no single standard so far. Researchers confirm that a breakthrough requires standards.
If there is no real standard or a proper infrastructure in place, mobile payment is not likely to achieve widespread customer acceptance in Germany and will remain a niche offering. It represents no real alternative to competing payment methods like cash or girocards that offer a high degree of convenience for consumers and are standardized through widespread merchant acceptance.
The present rich variety of different mobile payment apps and services in Germany is likely to confuse the customer, which can be a major impediment to mobile payment adoption. Conversely, if the mobile payment infrastructure is designed in a way that it is attractive for customers to use mobile payment, they are more likely to use it.