Bundesbank: People pay less often with cash
The love of German citizens for cash is continuing to decline. According to a survey-based study reported by the Bundesbank, 51 percent of transaction proceedings in Germany were still carried out with checks and coins last year. However, this was 7 percentage points less than in the previous study from 2021.
Payments with debit cards, whose share increased by 5 percentage points to 27 percent, and mobile payment methods via smartphones, which rose by 4 percentage points to 6 percent of all transactions, were also on the rise. In terms of sales volume, the debit card surpassed cash for the first time, with a 32 percent share. Cards are therefore being used more frequently for larger transactions.
According to the survey, 44 percent of respondents would prefer to use a debit card when given a free choice. The acceptance of cashless payment methods has increased, as 80 percent of all on-site transactions could have been paid for with a card or via a mobile device. This represented a 20 percentage point increase compared to 2021.
According to Bundesbank board member Burkhard Balz, the study also shows that the acceptance of cashless payment methods is still expanding. Almost half of the respondents reported cases where payment with a card or another mobile method was not possible.
During the Corona pandemic, consumers in Germany have used cards more frequently for payments than before, but they are still lagging behind other western countries in this regard. A return to the old payment behavior - with cash accounting for 74 percent as recently as 2017 - seems unlikely.
However, the majority of people want to continue holding onto cash, as the survey found that it is valued primarily for protecting privacy. On the other hand, cashless payment methods are preferred for their simplicity and speed. 63 percent expressed a desire for cash to still be used in the same way in 15 years. Realistically, however, this may be wishful thinking.
The shift toward digital payments is evident, as the Bundesbank's survey indicates that the use of cash as a means of payment decreased by 7 percentage points last year. Despite this trend, 63% of people still express a desire for cash to continue being used in the same way in the future.
Despite the increasing popularity of debit cards and mobile payment methods, which surpassed cash in terms of sales volume last year, many on-site transactions in Germany still have the potential to be paid for with cash, as shown by the Bundesbank's study.
