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Finance: Bundesbank: People pay less often with cash

Finance: Bundesbank: People pay less often with cash
Finance: Bundesbank: People pay less often with cash

When it comes to payments, plastic cards and smartphone applications are increasingly replacing traditional coins and notes. But in the eyes of many, cash still has one important advantage.

German citizens’ love of cash continues to wane. Last year, 51 percent of payments in Germany were still made with notes and coins, as the Bundesbank reported in a survey-based study on payment behavior. However, this was again 7 percentage points less than in the previous study from 2021.

Payments with debit cards are still on the rise, with their share increasing by 5 points to 27 percent, as are mobile payment methods via smartphones, which have increased by 4 points to 6 percent of all transactions. In terms of turnover, debit cards have overtaken cash (26 percent) for the first time, with 32 percent. Cards therefore tend to be used for larger amounts.

Acceptance of cashless payment methods increased, but can be expanded

If they were free to choose their payment method, 44 percent of respondents would even prefer the debit card. Acceptance of cashless payment methods has increased, as 80 percent of all on-site payments could have been made by card or smartphone. This corresponds to 20 percentage points more than in 2021.

According to Bundesbank board member Burkhard Balz, the study also shows that there is still room for improvement in the acceptance of non-cash payment methods. Almost a fifth of those surveyed reported cases in which paying with a card or another mobile method was not possible.

“Return to old payment behaviour rather unlikely”

Especially during the Corona pandemic, consumers in Germany have used cards more often than before when paying, but have so far lagged behind other Western countries. A return to the old payment behavior – in 2017, cash accounted for 74 percent of payments – still seems unlikely.

However, the majority of people want to stick with cash, which, according to the survey, is valued above all for its privacy protection. On the other hand, the advantages of cashless payment methods are ease of use and speed.

63 percent hoped that cash would continue to be used in the same way in 15 years. However, only 39 percent of respondents thought that was realistic. Almost half (48 percent) expect that cash will have disappeared from everyday life by 2038.

Source: Stern

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