InsightsMay 13, 2026
Buy Now, Pay Later in Germany: Why Germans love buying by invoice
Pay in 30 Days is one of Germany’s favorite ways to pay and a serious conversion booster in DACH e‑commerce. Here’s why it works so well and why merchants can’t afford to overlook it at checkout.
Clara Porath
Content & Communications Manager
For decades, ‘Pay in 30 Days’ has been one of the most popular payment methods in German e-commerce. It's a historical tradition that continues to have a huge impact on both conversion rates and buying decisions.
Why do so many shoppers choose this BNPL option at checkout? Where does the recurring criticism come from? And what does all of this mean for merchants looking to scale their checkout successfully?
Version: May 2026
In Germany, buy now, pay later means Pay in 30 Days
While BNPL comes in many forms, Pay in 30 Days (Rechnungskauf) is by far the dominant model in Germany.
The reasons go back decades: In 1950, the mail-order retailer Werner Otto introduced payment by invoice. A “trust for trust" model that still shapes customer expectations today. By the time e‑commerce took off, Germans were already deeply familiar with buying on invoice. And when BNPL gained traction in the 2010s, the model was finally digitized and made widely accessible.
A traditional favorite became the digital standard. And for many shoppers, it remains an essential part of every checkout experience today.
This could be interesting: Payment by invoice for online shops: why white label is the best choice
Pay in 30 Days remains a BNPL favorite
Recent studies confirm how strong the trend still is.
The Nexi E‑Commerce Report Germany 2024 places Pay in 30 Days at 33% – making it the second most popular online payment method. And the EHI Online-Payment Study 2025 shows a similar picture: only PayPal ranks slightly higher.
That's why, in 2026 and beyond, the most important principle remains: offering Pay in 30 Days at checkout is an absolute must for online shops. Not only to boost conversion, but also to prevent last-minute drop-offs.
BNPL under scrutiny
Despite its success, BNPL has faced growing criticism in recent years. Concerns include insufficient regulation, potential over‑indebtedness among younger consumers, and potential risks for shoppers. As a result, BNPL products are often labeled as potential debt traps.
Both SCHUFA and EU policymakers have addressed these concerns. The result: A revision of the EU Consumer Credit Directive. The CCD2 aims to bring BNPL into stronger regulatory focus and will take effect in Germany in November this year.
Avoiding payment defaults as business model
While the criticism has to be taken seriously, much of it actually targets installment-based BNPL models and not traditional Pay in 30 Days.
Why? Because BNPL providers pay merchants the full invoice amount even if shoppers fail to pay later. And in most cases, the payout has already happened by the time the default becomes official.
That’s why poor risk management would be economically disastrous for BNPL providers. Just one of the reasons why responsible payment service providers invest heavily in risk management and underwriting.
The foundation: precise risk management
Because merchants are fully protected against payment defaults, PSPs continuously refine their underwriting and risk models. Only with reliable credit checks can they protect both themselves and their merchants while maintaining high approval rates.
Ratepay, for example, relies on four core components:
- KI-AI‑powered risk engines
- cross‑merchant data models
- credit bureau integrations
- real‑time decision models
And these measures pay off. Ratepay’s bad dept ratio (the percentage of shoppers who default) remains at a very low single-digit percentage.
In Germany, security beats flexibility
So what makes Pay in 30 Days so special for shoppers?
For many it’s, above all, a safety mechanism. Paying only after receiving the goods gives them control and reduces risk. The mindset is less about liquidity and more about a simple principle:
“I pay when everything checks out.”
And in some verticals, this mentality is especially strong:
Electronics, for example, can easily run into the four‑digit range and most shoppers aren’t eager to pay that upfront. Fashion is another important vertical: if returns are expected, consumers simply don’t want to pay the full amount before they’ve even tried the items on.
Pay in 30 Days provides this level of security that shoppers crave – and they value it. According to the Nexi E‑Commerce Report Germany:
- 65% appreciate the ease of use
- 63% value the sense of security
In other words: The appeal isn’t the payment delay but the combination of control, transparency, and simplicity.
Pay in 30 Days can boost conversion in your shop, too!
Request a free, no‑obligation consultation today.
