A third of Germans are using less cash in their transactions
In Germany, a notable trend is emerging as citizens increasingly prefer digital payment methods over cash. This shift, driven by convenience, technology integration, and changing consumer behavior, is reshaping the country's economic landscape.
Germany, historically known for its preference for cash transactions, is experiencing a steady decline in cash transactions. The convenience of faster, contactless payments, as well as hygiene concerns heightened by the COVID-19 pandemic, have accelerated this shift.
Popular digital payment methods replacing cash include Girocard, a widely-used national debit card system, mobile wallets such as Apple Pay, Google Pay, and Samsung Pay, and Paydirekt, a German instant bank transfer platform. Credit cards from Mastercard and Visa are also more commonly accepted than before, further supporting cashless payments.
The drivers for this shift are multifaceted. Increased digital infrastructure and acceptance by retailers and service providers, government and business encouragement of digital payments as part of modernizing the economy, consumer preference for ease of use and speed, and economic challenges indirectly promoting cost-efficient digital payments and reducing cash handling expenses, all contribute to this transformation.
While specific numerical statistics or updated German consumer surveys on the decline of cash usage and digital adoption in 2025 are not detailed, this overview aligns with the broader economic modernization trends and digitization efforts seen in Germany’s economy.
Although cash is still a payment method in brick-and-mortar stores, its usage is decreasing. For online shopping, credit cards are popular, but buy now, pay later options and e-wallets like PayPal are also used. The buy now, pay later option, secure for buyers as the payment data is processed through secure online banking services and no third parties are involved, is another digital payment method gaining traction.
Cash, universally applicable as a payment method, can still be found in piggy banks, used as tips, or given as small pocket money. However, its use in daily life by citizens is less frequent. Banks obtain cash by withdrawing it from their central bank accounts or taking out a loan from the central bank, and then distribute it to consumers. In Europe, cash comes from central banks, with the European Central Bank responsible for the Eurozone and the Bundesbank for our country.
As digital payment methods become increasingly popular among citizens, it's clear that Germany is embracing a more modern, efficient, and digitally-integrated economy.
- The rise in preferring digital payment methods in Germany extends beyond cash transactions in brick-and-mortar stores, as online shopping increasingly relies on credit cards and digital wallets like PayPal.
- The shift towards cashless payments, accelerated by investment in digital infrastructure and the buy now, pay later option, is indicative of Germany's growing interest in finance and business, aligning with broader economic modernization trends.
