German consumers seem particularly fond of one of the oldest payment systems, cash. They are the most cash-intensive developed countries on earth. No one knows why Germans are so keen on cash. Some Germans say cash is easier to track your money and spending. Unlike in China today, where almost everything can be paid with a mobile phone, Germans still cling to a rustic preference for cash.
Many people may not know much about the German character, for example, because they do not like to use credit CARDS and prefer to pay in cash,In particular, the Euro has issued 500 Euros in denomination bills, enough for them to pay a relatively large sum of money.
In Germany, acceptance of mobile payments is significantly lower. At the shopping supermarket, people either pay by card or directly in cash – hardly anyone pays with a smartphone. The difference between Germany and China is that Germany has its own mobile payment system — but there are too many competitors in the market. No one knows which software to download, or when to use the phone to pay for it. In China, the whole payment market is almost divided between WeChat payment and Alipay.
In Germany, which has always been at the forefront of the world in science and technology, why is it so “lagging ” in the field of mobile payments? That’s because 77% of Germans prefer to pay in cash because they feel more secure using it.
But with the push of a wave of mobile payments, there has now been a very big change in the situation in Germany, according to media reports.
For the first time in Germany last year, the turnover paid for by CARDS in physical stores was more than cash, according to business research institute EHI on Tuesday (May 7).
The report marks an increasing shift in the use of cards to pay for Germans accustomed to paying in cash. The amount paid with the card last year exceeded the cash consumption for the first time.
Germany spent about 209 billion Euros last year on cards, accounting for 48.6% of total turnover and about 208 billion Euros in cash payments, or 48.3%. By comparison, half of all payments in 2017 were made in cash.
This trend does not mean that the meaning of cash has decreased in Germany. It is reported that in small denomination consumption, cash is still the first. In 2018, more than three-fourths of the 20 billion deals were through cash.