Germany Goes From Cash To Contactless Payment

For Germans, cash is still a preferred method of payment; however, new digital payment methods are on the rise, and people in Germany use contactless payment methods for making purchases or payments. The recent trend shows that the younger population has now shifted towards digital wallets and mobile payment methods as compared to the older population, who still rely on cash. With the rise of mobile payment methods, the use of cash, however, has decreased over time. Mobile payment applications and digital wallets feature lower fees compared to traditional card reader providers. Furthermore, the use of contactless payment methods is perceived as more secure and faster.

Rising Trend of Contactless Payment

When looking at the trends in Germany, the major shift from cash to digital payment methods was seen post-COVID According to a 2021 Bundesbank study, 42% of customers were already opting for cashless payment functions. These figures align with the prevailing trends of increased smartphone usage. A considerable number of individuals who use smartphones find cashless payments and payment apps appealing due to their convenience and modern features.

Biometric and contactless payment

In Germany, the use of biometric and contactless payment methods is gaining significant traction. Advancing technology allows consumers to conduct transactions conveniently and securely, eliminating physical contact with cash or cards. Biometric authentication, such as fingerprint or facial recognition, provides an additional layer of security and streamlines the payment process for users. Contactless payment options, such as NFC-enabled cards or mobile wallets, are also gaining popularity in Germany. These methods not only enhance transaction speed but are also more hygienic, particularly in times of health concerns. These developments reflect a shift in the German payment culture, with a focus on innovation and efficiency