- Two thirds of consumers pay contactless
Digital Payment Methods Are Increasingly Replacing Cash in Germany
In Germany, digital payment methods are increasingly replacing cash when shopping. Already, two-thirds of consumers aged 18 and above use smartphones, smartwatches, or bank and credit cards with an NFC chip for contactless payments at checkout. This is according to the representative "Postbank Digital Study 2024," which surveyed 3,171 adults in Germany.
The Postbank has been tracking the acceptance of various payment methods since 2015. In the first year of the study, only 13% said they used contactless payments. By 2020, this number had risen to 47%, and by 2022, it was at 60%. Meanwhile, the group of contactless payment refuseniks has been decreasing. In 2015, 66% said they did not want to use contactless payments. This number had shrunk to 34% by 2020 and was at 26% in 2022. Currently, one in five (20%) consumers do not use modern digital payment methods and do not plan to in the future.
"While the love for cash is waning, many Germans still don't want to completely give it up," said Thomas Brosch, head of digital sales at Postbank. According to the Postbank study, 32% of respondents support the abolition of cash, while 44% do not.
The acceptance of new payment methods, like many digitalization topics, depends on the age of the respondents. The use is particularly widespread among digital natives (81%), i.e., people between 18 and 39 years old. In the age group of 40 and above, usage drops to 59%.
The use of contactless payments, particularly mobile payments, has increased significantly. In mobile payments, customers unlock their smartphone or smartwatch and hold it up to the checkout terminal. "Many people always have their smartphone with them. For them, it's practical to pay with it because they don't need to carry a bank or credit card," said Brosch.
Among the various mobile payment methods, Apple Pay is the most popular (28%), followed by Google Pay (25%). 16% prefer their bank's individual app. Following these are Payback Pay (14%), retailer apps like Netto, Edeka, or Starbucks (8%), and Samsung Pay (6%).
People often use smartphones or smartwatches with an NFC chip for contactless payments at checkout, as highlighted in the Postbank Digital Study 2024. Thomas Brosch, the head of digital sales at Postbank, mentioned that many customers find it convenient to pay using their smartphones, as they usually carry them around.
