Internet payments in Germany: a classificatory framework and empirical evidence

It becomes obvious that Germany is far from an overall acceptance of innovative Internet payment systems, and time, as well as missing killer applications, seem to be crucial in this context.

Abstract

This article outlines Internet payment methods currently in operation in Germany. The description of the prevailing systems shows their innovative character, but the commercial success of some payment methods is not convincing. Acknowledging the dynamics of Internet payment systems, this article aims at revealing reasons for the lack of consumer acceptance of these innovative systems and clarifies current trends. Furthermore, the article investigates the reasons why specific payment systems are chosen over others. The new product adoption theory is tested using empirical evidence from Germany, gathered by way of an annual survey carried out at the University of Karlsruhe since 1998. It becomes obvious that Germany is far from an overall acceptance of innovative Internet payment systems. Time, as well as missing killer applications, seem to be crucial in this context.