Payment by invoice for online shops: why white label is the best choice

The German e-commerce landscape is highly competitive. And the checkout experience is one of the biggest levers they can optimize.

In this context, one payment method continues to dominate shopper preferences year after year: payment by invoice (“Rechnungskauf”). The flexible payment method has been a top choice for German shoppers for decades. And there’s no sign of that changing anytime soon.

Hence, for merchants expanding into or operating within the German market, the question is no longer whether to offer invoice payment, but how to offer it in the most efficient way. After all, while shoppers love it, running invoice payment as an in-house solution can be complex and risky.

The answer? A white label invoice solution. Here’s why it’s the best choice for online merchants.

Why German shoppers love invoice payment

The numbers speak for themselves: According to the EHI, invoice payments accounted for a staggering 26% of e-commerce revenue in Germany in 2024, surpassed only by PayPal.

The reason is simple: payment by invoice offers security and convenience. Factors that are crucial for German shoppers.

With invoice payment, shoppers:

Don’t have to share sensitive payment information
First pay once the goods have arrived and been inspected
Can return unwanted items without tying up their funds

This level of control builds trust and removes friction from the customer experience. Especially important in a market where consumers historically prioritize security over speed.

Flexibility is another major factor: after all, typical payment terms range from 14 to 30 days. And many consumers take advantage of this (59%).

In essence: Payment by invoice meets core consumer expectations in Germany – security, simplicity, and control.

The flip side: risks of invoice payment for merchants

While shoppers love it, online merchants face a different reality. After all, payment by invoice can introduce significant challenges for them. Especially if managed internally.

The biggest risks are payment defaults, especially among new customers. When shoppers pay late or don’t pay at all, it can heavily strain cash flow, which is particularly challenging for smaller merchants with limited financial buffers.

On top of that, there are hidden costs for invoicing, payment reconciliation, credit checks, and possible pre-financing. And the administrative effort involved in dunning and, if necessary, initiating collection measures.

These tasks require not only time and specialized expertise but also a robust infrastructure. That’s why, for many merchants, running invoice payment in-house is a costly and resource-intensive undertaking.

The solution: white label invoice payment

A white label solution allows merchants to offer payment by invoice as a fully integrated, shop-branded payment option, while a specialized provider handles the backend processes.

The clue: Shoppers see the payment method as a native part of the store’s own checkout experience. There's no redirect to third-party portals or external payment pages, which reduces friction, builds trust, and prevents distractions from competing merchants using the same payment provider.

For merchants, the benefits are substantial:

No need for major infrastructure investments
Access to advanced fintech expertise and risk management
Full credit checks and fraud prevention handled externally
Optional outsourcing of dunning and collections

Especially for smaller businesses and fast-growing startups, this setup is valuable. Instead of allocating resources to complex payment operations, they can stay focused on their core business activities.

In essence: A white label solution allows merchants to offer invoice payment with minimal risk and maximum conversion.

Fraud prevention and data protection

Another big advantage of the white label approach is the heightened focus on security and fraud mitigation. Reputable white label providers offer comprehensive credit checks and risk management. And ensure compliance with GDPR requirements for data processing.

For both merchants and shoppers, this is crucial. It builds confidence, ensures legal security, and protects sensitive personal data throughout the entire payment flow.

In essence: By outsourcing invoice management to an experienced white label provider, merchants can offer one of the most popular payment methods in Germany – securely, compliantly, and without operational burden.

Conclusion: White label invoice payment drives e-commerce success

Payment by invoice remains one of the leading payment methods in German e-commerce. And for merchants looking to boost conversion, strengthen customer trust, and reduce abandonments, it’s a must-have.

However, running it in-house exposes merchants to significant financial and operational risks. A white label solution minimizes these risks, simplifies administration, and ensures a smooth, branded payment experience while maintaining full compliance with data protection requirements.

In other words: For merchants competing in the crowded German market, white label invoice payment is one of the most strategic decisions they can make.