DeutschThe Deutsche Kreditwirtschaft published statistics about payment methods in Germany.[1] There are 4,5 billion transactions by Girocard (debit cards) per year with an average payment amount of 46,86€.
What does it mean for retail?
The development of payment procedures of the retail sector was analysed by the newsletter of „Finanz-scene.de“. In total, the share of cash payments fell to 48,3% and of direct debits to 10%, while Girocard’s share made only 30,1% of payment transactions in retail. [2] This is also due to the fact, that retailers still do not offer more options and that there are still signs with „Only cash payments“.
Despite the growing offer of mobile payment options, compared to other countries, it is still difficult for Germans to say good-bye to cash. Security aspects, fees and the hesitant approach of retailers to advance in this field, are among the reasons.
Advantages of modern payment methods
Modern payment methods lead to higher cost efficiency, speed and transparency. The technology is developing, card-based solutions give way to alternative payment methods which rise with e-commerce and FinTechs.
Because of e-commerce, customer expectations and also because of new regulations, like the PSD2, mobile and alternative payment methods gain ground. The market is still complex, there exist a number of strong alternative solutions to PayPal and Apple Pay.
Time for strategic choice
When selecting a platform, customer expectations, training of employees and costs and security aspects are to be considered. But please keep in mind that cash payments involve risks and costs as well.
If you need support to make the right choice, I will be there for you with my expertise in cash management processes and systems.
[1] https://www.girocard.eu/presse-mediathek/pressemitteilungen/2020/girocard-jahreszahlen-2019/
[2] https://finanz-szene.de/payments/ist-die-girocard-dem-untergang-geweiht-das-sagen-die-zahlen/