How eBay Kleinanzeigen brought safe online payments to Germany’s largest classifieds site with OPP Escrow

In 2020, OPP brought online payments, escrow and local dispute handling to eBay Kleinanzeigen, Germany’s largest classifieds site, from its Berlin office.

In November 2020, OPP and eBay Kleinanzeigen launched online payments on Germany’s largest classifieds site: payment methods for buyers and sellers, an escrow function that held the money until delivery, and support with dispute handling from OPP’s team in Berlin.

‘Kleinanzeigen’ is German for classified advertisements, and eBay Kleinanzeigen, today simply called Kleinanzeigen, carried about 40 million of them, visited by roughly 32 million people a month. It is the German counterpart of Marktplaats, with one big difference: in Germany, business was still mostly done locally, in cash at the door. Only in 2018 did card payments overtake cash, according to the EHI Retail Institute.

The partnership: OPP’s first step into the German market

eBay Kleinanzeigen was OPP’s entry into Germany. OPP had just opened an office in Berlin, and the partnership came at a moment when online payment was becoming more popular in Germany. A survey by the German Payment System Initiative showed that 57 percent of Germans were using their debit and credit cards more than before the pandemic.

“Our partnership with eBay Kleinanzeigen does indeed come at an interesting time, now that online payment appears to be becoming more popular in Germany. eBay Kleinanzeigen has a great reputation in Germany and with millions of visitors and thousands of payments, it offers us great potential in a new market.”

Maurice Jongmans, CEO of Online Payment Platform

The challenge: building trust in a market used to cash

Paying a stranger online for a second-hand item asks for trust that cash at the door never needed. Buyers needed to know their money would not disappear before the item arrived, and sellers needed to know they would be paid once they had handed it over. For consumers who had only just started paying by card in shops, that step had to feel safe, or they would not take it.

“Because online payment in Germany is in the phase of catching up, offering a secure environment is very important, so you ensure and grow trust between consumers.”

Maurice Jongmans, CEO of Online Payment Platform

Our solution: escrow, payment methods and support in German

OPP provided the online payments and OPP Escrow: the buyer’s money was held on a separate account until the seller had delivered the product or service, the same principle Marktplaats users knew as Gelijk Oversteken. OPP’s first-line support and dispute handling, for when buyer and seller disagreed about an online payment, were organised with local people in Berlin.

“Good support is a strategic factor in the success of our customers. We prefer to organise this with local people. For eBay Kleinanzeigen, for example, we also take care of ‘dispute handling’ if there is a disagreement between buyer and seller about the online payment, which is best managed by a local German team.”

Maurice Jongmans, CEO of Online Payment Platform

The impact: C2C experience that a German platform could build on

The first online payment on eBay Kleinanzeigen was a pair of sneakers, bought by OPP’s own CEO. The experience OPP gained with eBay Kleinanzeigen is what it now brings to other platforms expanding into Germany, such as Brenger.

“There is hardly any other payment service provider that has so much experience with consumer-to-consumer payments and provides specific services for a platform like ours. In addition, we are very satisfied with the flexibility of the team at Online Payment Platform and their ambition to realise the best solution for us. Together we will discover what works best for the German consumer.”

Paul Heimann, General Manager of eBay Kleinanzeigen

What this means for you: why entering Germany takes local payments and local support

If you run a marketplace and Germany is on your roadmap, eBay Kleinanzeigen’s starting point is a useful one: a large audience, a strong preference for cash, and a growing willingness to pay online if it feels safe.

Escrow gives consumers that safety. Local payment methods and a support team that speaks their language give them the confidence to use it. OPP offers both, with an office in Berlin since 2020.

Want to see how OPP could support your expansion into Germany? Get in touch to learn more.

Talk to our team

Frequently asked questions

What does a classifieds marketplace need to launch online payments in Germany?

At eBay Kleinanzeigen it took three things: payment methods German consumers trust, escrow that holds the buyer’s money until the seller has delivered, and support in German, including dispute handling when buyer and seller disagree. OPP provided all three from its Berlin office.

Why does escrow matter in a market used to cash?

In Germany, card payments only overtook cash in 2018. Paying a stranger online for a second-hand item asks for trust that cash at the door never needed. Escrow provides it: the money is held by a neutral party until the seller has delivered.

Who handles disputes between buyers and sellers?

On eBay Kleinanzeigen, OPP’s local team in Berlin handled disputes when buyer and seller disagreed about an online payment. Disputes like these are best handled in the buyer’s and seller’s own language.