Freedom of choice when paying: No more cash-only in Germany!

Freedom of choice when paying: No more cash-only in Germany!

In Germany, paying is like in the 20th century: many shops still rely entirely on cash. But Bitkom wants to change that. The association supports the government's plans for nationwide freedom of choice in payment methods and thus brings a breath of fresh air into the debate about payment in the republic. According to a survey conducted by Bitkom, 74 percent of Germans are annoyed when they can only pay with cash. Many would like to see a legal obligation: 70 percent would not mind if shops had to offer at least one digital payment option.

This concern is not new. During the European Football Championship, Germany was heavily criticized by international fans because of the “cash only” payment in many pubs and kiosks. Bitkom therefore calls for the acceptance of at least one digital payment method to be introduced across the board as an equivalent alternative to cash in all areas, from retail to restaurants to authorities. IT-Times notes that it is also important that minimum amounts for digital payments are eliminated in order to increase the pressure to use.

Government is planning legal regulations

The federal government is currently pursuing the goal that every store must offer both cash and at least one digital payment option. The Federal Council supports this initiative and also calls for a mandatory digital payment option. Bitkom suggests integrating these regulations into existing laws such as the Civil Code and the Trade Code. The association would like the regulations to remain technology-neutral so that future developments can also be taken into account.

Of course, there are exceptions: Small or special businesses, such as non-profit organizations or temporary markets, could be exempt from this regulation. In order to make the transition easier, Bitkom is planning accompanying measures such as tax incentives and funding programs that are intended to support the introduction of digital payment methods. “Freedom of choice when paying is overdue,” said Bitkom President Dr. Ralf Wintergerst. However, this freedom does not mean the end of cash, but simply a modernization of the payment system.

Experiences from other countries

Experience from other European countries shows that the use of digital payment methods has been successfully integrated. In Denmark, for example, 89 percent of respondents use local digital payment methods for payments between private individuals. In Sweden it is also 86 percent. According to a study by [der Bank Blog](https://www.der-bank-blog.de/digitale-payment methods-vormarsch-infografik/studien/37719852/), 69 percent of those surveyed in Germany intend to continue using cash frequently. However, the trend appears to be changing, as 40 percent of Irish and 39 percent of Swedes plan to pay more by card or mobile payments. In the Nordic countries, however, cash has increasingly faded into the background.

What is also important to consider: user connection and willingness to use digital payment methods have been increasing in recent years. Concerns about technical problems, data security and possible misuse remain present, but the survey shows that a change in thinking is underway. At a time when retail relies more on convenience and speed than ever, the digital payment method is becoming the driving force for future sales and customer loyalty.

So it remains exciting to see how the legislative changes will affect consumers' payment behavior. The federal government's next steps could be crucial to how Germany can catch up with payments in the next few years. After the bitter discussions about “cash only”, one can hope that the digital future in payment transactions will soon become tangible.