Cash champions as quick and cost-efficient in Germany
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Non-cash payments have increased in volume throughout the years as the payments landscape continues to evolve. The trend, however, has yet to fully take over Germany as cash remains the most favoured means of payment for German consumers.
A recent study on “Costs of CashMoney in physical form such as banknotes and coins. More Payments” released this month by the Deutsche Bundesbank together with EHI Retail Institute [study in German only], reveals how consumers continue to prefer cash despite having the option of paying by credit/debit/gift cards. Among its key findings were:
- Paying by cash takes just over 22 seconds and costs around 24 cents per transaction, while payments by card needing PIN entries takes around 29 seconds.
- At 22 seconds, payments made by cash is 16 seconds quicker than payments made by card or with signature that would usually take around 38.6 seconds.
- A yearly estimate of 20 billion transactions take place in Germany’s retail trade sector where three out of four payments are settled in cash.
It is clear that cash is not settling for less and is making its statement amidst the cashless trend. In fact, last year’s World Cash Report found that cash, by far, remains the most widely used form of paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More in many regions around the world. That being said, it is no surprise it remains the champion as it rightfully secures its place in society being “the fastest and most cost-effective means of payment”, says Johannes Beermann, Bundesbank Executive Board member responsible for Cash ManagementManagement and control of cash in circulation. More.
Despite the continuous roll-out of contactless and digitized forms of payments, it looks like cash is not giving up its title anytime soon and will continue to be first at the finish line.
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