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Germany's Digital Payments Surge as Consumer Advocates Press for Cash Safeguards

They urge binding guarantees for cash payments before EU access rules take effect in 2026.

Overview

  • Bundesbank analysis shows smartphone and smartwatch payments climbed to nearly 16% in the second half of 2024, while cash accounted for 51% of everyday transactions in 2023.
  • Girocard remains the dominant debit option and the least costly for merchants at about 0.8% of turnover, compared with roughly 2.3% for cash handling and 2.4% for credit cards.
  • Field tests by the Bundesbank found cash accepted on the first try in 98.7% of 2,000 retail and hospitality purchases, though eight of 30 administrative offices refused cash.
  • Cashback withdrawals at supermarket tills rose from about €2.23 billion in 2019 to more than €12.3 billion in 2023, bringing fees for merchants and raising risks of local shortfalls if cash takings drop below critical levels.
  • EU proposals for 2026 would allow retailer withdrawals of €100–€150 without a purchase, yet the vzbv calls the plans insufficient and reports mounting complaints about barriers to paying with cash.