That used to be an issue, but by now PayPal and CC are so common, you can even use PayPal to pay for gasoline at Shell stations [0].
Overall it's also more of a problem in physical retail, Germans who do a lot of shopping online usually have no issue at all with paying by CC/PayPal, often getting a prepaid CC just for that.
But it's not like you are missing out on some massive part of German customer base because paying online with SEPA is usually more hassle than paying online with PayPal, so most people prefer the later.
Particularly due to the fact that most "quick" online SEPA payment schemes involve giving a third party access to your banking account [1]. Which shouldn't be an issue, as most actions that involve sending money still require a TAN, but some banks have relaxed these rules, allowing smaller amounts to be transferred without supplying a TAN [2].
It's not difficult to see the potential problems here: If Sofortüberweisung ever has a breach, there's the very real possibility that the data could be used to trigger massive amounts of fraudulent money transfers.
> Overall it's also more of a problem in physical retail, Germans who do a lot of shopping online usually have no issue at all with paying by CC/PayPal, often getting a prepaid CC just for that.
I am living in Germany and I stand by my observation that few people have a credit card. PayPal luckily offers SEPA direct debit, even though many consider PayPal for reasons that are off topic here as "workaround".
> Particularly due to the fact that most "quick" online SEPA payment schemes involve giving a third party access to your banking account [1].
> It's not difficult to see the potential problems here: If Sofortüberweisung ever has a breach, there's the very real possibility that the data could be used to trigger massive amounts of fraudulent money transfers.
Sofortueberweisung is a security nightmare that nobody should use. Just offer SEPA direct debit.
> I am living in Germany and I stand by my observation that few people have a credit card.
That's why I said it's mainly an issue in physical retail due to many retailers not wanting to go through the hassle of getting a CC system in addition to their already established SEPA direct debit system, the fees charged by CC companies is another factor as they are much higher, on a per transaction basis than what's being charged by SEPA direct debit [0].
But we are talking online here, and in that context, many people do have PayPal accounts [1], that happened regardless of the massive controversies which surrounded PayPal a couple of years ago. The ven-diagram here is quite easy: People who like shopping internationally online are more versed in online shopping and thus more likely to have a PayPal account exactly for that reason.
People who don't shop online as much, or not at all, do not and people who only shop online at domestic companies, make use of the established SEPA systems.
> Sofortueberweisung is a security nightmare that nobody should use. Just offer SEPA direct debit.
SEPA direct debit can be its own security nightmare issue because you are essentially giving a third party allowance to just charge your account, for whatever amount. It also does not replace the use-case of Sofortüberweisung because Sofortüberweisung allows "instant fulfillment", which SEPA direct debit usually does not.
Because SEPA direct debit requires time for processing, time during which no product/service will be delivered. That's where Sofortüberweisung comes in: It allows payment with instant fulfillment because Sofortüberweisung is like the "man in the middle" who confirms the transaction actually took place, allowing for fulfillment before the payment actually arrives at the seller.
Note: I'm not saying Sofortüberweisund or PayPal are amazing services, I'm merely pointing out the difference between Germans shopping online and German physical retail because it's the latter that suffers from a lack of CC support. But plenty of Germans are fine taking other, CC-less routes, like PayPal or Sofortüberweisung, to get their online shopping done.
In that context, you won't be missing out on a massive customer base due to your lack of SEPA payment options, Germans who want what you sell will have/find an alternative way to pay for it, without using SEPA.
Overall it's also more of a problem in physical retail, Germans who do a lot of shopping online usually have no issue at all with paying by CC/PayPal, often getting a prepaid CC just for that.
But it's not like you are missing out on some massive part of German customer base because paying online with SEPA is usually more hassle than paying online with PayPal, so most people prefer the later.
Particularly due to the fact that most "quick" online SEPA payment schemes involve giving a third party access to your banking account [1]. Which shouldn't be an issue, as most actions that involve sending money still require a TAN, but some banks have relaxed these rules, allowing smaller amounts to be transferred without supplying a TAN [2].
It's not difficult to see the potential problems here: If Sofortüberweisung ever has a breach, there's the very real possibility that the data could be used to trigger massive amounts of fraudulent money transfers.
[0] https://www.shell.de/autofahrer/smartpay.html
[1] https://de.wikipedia.org/wiki/Sofort%C3%BCberweisung
[2] https://www.comdirect.de/konto/tan-freiheit.html