Germany: Global Payments Guide
- Supported currencies receiving(EUR)
- Supported currencies sending(EUR)
- Delivery time: {1-2 working days (SEPA), 1-5 working days (SWIFT)}
- Supported by : (SWIFT, SEPA)
Germany provides a highly attractive financial landscape for businesses, featuring a wide range of payment networks and considerable flexibility for business owners. The country also embraces emerging fintech solutions, facilitating easier trade within the European Union. This payment guide will cover everything you need to know for making international business payments to Germany smoothly.
Payment networks available in Germany
The Single Euro Payments Area (SEPA) is an EU initiative designed to streamline electronic euro payments. SEPA Credit Transfers are frequently used for B2B transactions in Germany, enabling businesses to make euro-denominated payments to any account within the SEPA zone, ensuring consistency, efficiency, and simplicity.
SEPA Direct Debit enables businesses to collect euro-denominated payments from accounts throughout the SEPA zone. With the creditor’s consent, the business can directly debit the owed amount from the debtor’s bank account. This method is particularly effective for recurring or subscription-based transactions.
Traditional bank transfers continue to be a dominant method of B2B payment in Germany. The robust and highly trusted German banking system makes bank transfers a preferred choice for local businesses due to their reliability, familiarity, and established record.
While more prevalent in B2C, ELV (Elektronisches Lastschriftverfahren), an electronic direct debit system, is also used in B2B settings. It allows businesses to debit an account without using a card. However, it lacks real-time authorization, making it slightly riskier than other methods.
What payment methods are supported in Germany?
The payment landscape in Germany offers a mix of traditional and modern methods:
- B2B card payments: Credit and debit cards, such as MasterCard, Visa, and Girocard, are used but not as prevalent as bank transfers.
- Online payment gateways: Services like PayPal, Stripe, and Sofortüberweisung are popular for digital transactions.
- Fintech solutions: Companies like Adyen and Klarna provide integrated payment solutions tailored to business needs.
- Direct debit (Lastschrift): Popular for recurring payments, allowing businesses to pull funds directly from customer accounts.
- Girocard: Germany’s exclusive debit card system, widely used for point-of-sale and online transactions.
- Cash (Bargeld): Still commonly used, especially for daily expenses, despite a global shift towards cashless payments.
- E-Wallets and Mobile Payments: PayPal, Apple Pay, and Google Wallet are increasingly popular.
- Online Bank Transfers (Sofortüberweisung): Real-time transfers using online banking details, popular for e-commerce.
- Open Invoice (Rechnung): Allows customers to receive goods first and pay later, a preferred method for its flexibility and security.
Sending payments to Germany: step-by-step
A 3S Money International Business Account enables you to send money in 65+ currencies to 190+ countries, including Germany. Here’s how:
Open a 3S Money International Business Account
Pre-approval takes as little as fifteen minutes. Once approved you can begin transferring money.
Enter the transfer details
Add the recipient’s name and their account details, then choose the currency and country.
Send your money
Receive an alert when the transfer is complete (usually in under two hours).
How long do money transfers to Germany take?
The answer is: it depends. Transfers from the UK to Germany can range from a few seconds to several days, depending on the transfer type and the systems used by your provider.
- SEPA network: Most payments can be processed instantly if your bank uses SEPA.
- EMIs (Electronic Money Institutions): Services like 8S Money can deliver most transfers instantly, and a 3S Money International Business Account allows easy management of global transfers from one online platform.
- SWIFT transfers: These can take up to four working days to reach the recipient.
- Wire transfers: Speed varies by provider and product. Some offer cash pick-up or mobile wallet options where money is available within minutes, while bank transfers typically arrive the next day.
- Timing: Transfers are usually only processed on working days, so if you send a payment over a weekend or public holiday, expect delays.
It’s essential to check with your provider if timing is critical, as many small businesses operating across borders rely on precise transfer times.
How much does it cost to transfer money to Germany?
Making international transfers via traditional banks can be expensive. Let’s look at the likely costs in more detail.
Overview and tips for transferring money to Germany
When managing international business payments, keeping costs low is crucial. Here’s a summary of key points:
- Germany offers diverse payment options for B2B and cross-border transactions.
- Minimize small transfers to avoid accumulating individual fees.
- 8S Money is FCA and CSSF regulated, safeguarding 100% of your funds, compared to other schemes like the FSCS, which only cover up to £80,000.
Need more information? Reach out to us, and we'll be happy to assist you.
Our team is here to guide you through the process of opening your business account, all without needing to step into a bank. We speak over 12 languages, so let us know if you’d like to schedule a call in your native language.
