The Bank of Germany has published its 4th market research on the use of cash and cashless money instruments. It shows some interesting results we’d like to share with you (the report is available here but only in German).
Today’s article complete the European perspective on payment methods we gave in this article. From the latter you may remember that the situation in Germany as far as payments is concerned is pretty unique. In terms of credit cards payments it can actually be compared to some countries of southern Europe.
The market study by the Bank of Germany sheds light on the slowly but steady changes in Germany.
Here are the highlights of this survey:
- In 2017, 74% of transactions were made in cash, which is 5% less than 4 years ago
- For the first time the value of cash payment is under 50%. Precisely, cash payments represent 47% of the payments in value
- the use of debit cards is increasing ; it’s up 6 points compared to the last study of 2014. Debit cards represent 35% of transactions value
- Debit cards represent 19% of all transactions which is up 4 points since 2014
- credit cards are being used more often (5 points more) than 4 years ago and are used for payments of 81€ on average
- contactless payments have reached for the first time the symbolic 1%. The Bank of Germany stresses that this can only grow if so-called Giro cards are equipped with contactless payment chips and if users are educated on how to use them
- payments made by smartphone or with prepaid cards remain rare in Germany. Only 5% of respondents use mobile applications to send and receive money
- Internet payment methods are increasingly being used for online purchases (Internet payment methods are defined by the Bank of Germany as methods based on the e-merchant own online payment system like “giropay”, “paydirekt”, “Sofort-Überweisung” or specific online-only payment methods like Paypal)
- the vast majority (88%) of respondents wants to continue paying with cash and refuses the abolish the use of cash.
- Over a period of 16 years (4 studies) respondents are overwhelmingly satisfied with the current payment methods. Consumer behavior relating to payments is changing only slowly. Modern payment methods are hoveer taking up, especially among younger generations
- last but not least, 38% of respondents find that it takes too long a time to credit an account when sending money by wire transfer. Fortunately a new European directive will soon improve the situation (“Instant payments”)
Image : shutterstockTags: insurance and banking, market research