Cash Remains on Top in Germany

A study of German payments in 2023 shows half of all transactions were settled using banknotes and coins, with privacy cited as a top reason why people choose cash.

The Deutsche Bundesbank study found cash was used for 51 percent of payments, with debit cards in second place at 27 percent. Although cash use has declined since the 2021 study (when it accounted for 58 percent of payments), Executive Board Member Burkhard Balz observes ‘this decline is no longer as pronounced as during the coronavirus pandemic.’ Debit card use is up five percent compared to the 2021 figures.

In terms of turnover, debit cards were in first place, accounting for 32 percent, while cash is second at 26 percent, remaining well ahead of credit transfers and e-payments such as PayPal, Klarna and giropay. Cash remains especially popular for smaller transactions while debit cards are preferred for larger amounts.

28 percent of respondents said cash is their preferred way to pay, around the same as in 2021, with 44 percent preferring cashless methods and 28 percent saying they had no preference either way.

Cash acceptance remains high, with respondents reporting they could use cash at 94 percent of point-of-sale locations, down slightly from 97 percent in 2021. There is some concern around access to cash, with 15 percent of people saying they were finding it difficult or very difficult to reach an ATM or bank compared to just six percent in 2021. This trend held for both urban and rural areas.

The majority of respondents wish to continue using cash, and just seven percent imagined a cashless society in 15 years’ time. Balz provided assurance that ‘the Bundesbank and other Eurosystem central banks are working hard to keep cash available as a cost-effective and efficient means of payment in future. Cash is and remains our core physical product.’