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“A year ago I couldn't pay by card at my local bakery,” says Bundesbank board member Burkhard Balz.

“Today, a year later, you are already being looked at if you still want to pay with cash.” Many Germans have probably had similar experiences in recent months.

And Balz sums up a development of the past few months that was largely driven by the pandemic: Germany's accelerated farewell to cash.

And a comprehensive survey of the Bundesbank, which was carried out between August and October, now underpins this with figures.

It carries out these examinations every three years.

This time 5022 representatively selected people were interviewed, 4227 of them kept a payment diary for at least one day, i.e. noted all payments they made with the location and method of payment.

And the results are clear.

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"We are seeing a significant increase in card payments," says Balz.

Specifically, Germans still use cash in 60 percent of all transactions.

But three years ago three quarters of all payments were made in cash.

And the change is even more dramatic when you relate it to the value of the payments.

Less than a third of sales were now made in cash, three years ago it was almost half.

Card payment has increased significantly.

Whereas in 2017 giro or credit cards were used in only 20.5 percent of transactions, this now happened in 29 percent.

Transfers and direct debits have also increased, but this is mainly due to the increased turnover on the Internet.

At the checkout, where this form of payment is not used, more than half of sales, exactly 55 percent, are now made with cards.

The decisive factor is that cards are now being used more and more frequently for small amounts, according to Balz.

It is true that amounts up to five euros are still paid in cash in 89 percent of cases.

Between five and 20 euros it is also 70 percent.

The cash share rises again above 500 euros

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But the situation is reversed from an amount of 20 euros.

Between 20 and 50 euros, 45 percent of transactions are made with the Girocard and another eight percent with credit cards.

Only 43 percent of those paying, i.e. a minority, use cash here.

Three years ago cards were only in front for amounts between 50 and 100 euros.

Now the cash payment is just a quarter here.

For amounts over 500 euros, however, the proportion is then surprisingly larger again and is 36 percent.

"Corona has accelerated the transition to cashless payments," concludes Balz.

And this development will not be turned back after the end of the pandemic.

"That depicts the post-corona normality."

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It is important to him that the Bundesbank continues to support all payment methods, especially cash payments.

At the same time, this also means that it does not prefer any payment method and does not hinder the development towards card payments.

A technical innovation that is making card payment increasingly attractive to many is the option of contactless payment, in which the card is only held briefly to a reader.

Three quarters of those who have a giro or debit card with contactless functionality also use it.

It is around two thirds for credit card owners.

Paying by smartphone on the rise

A fifth of those who use this feature now did it for the first time during the pandemic.

Most did it because they were asked to do so by signs at the checkout or because they themselves simply found it more hygienic.

Payment by smartphone is also on the rise.

So far, only around three percent of transactions at the cash register are made via services such as ApplePay, GooglePay or the banking apps of the savings banks and Volksbanks.

Overall, only around 13 percent of those who own a smartphone have used it so far.

But there are big differences between the sexes and the age groups.

Although only nine percent of women use it, it is twice as many among men.

Among the younger ones up to 34 years of age it is even 22 to 23 percent.

In the age groups above, the older the cohorts are, the fewer there are.

But even with people over 65, at least five percent pay by smartphone.

Of those who have not yet done so, 70 percent say they see no need for it.

But experience shows that such a need can easily be awakened.

This was also evident with contactless payments.

Every eighth went over to this because friends or acquaintances showed it or drew attention to it.

And once enough people pull out their smartphones at the bakery in the morning, that too could soon be part of the new normal.

The corona crisis is driving the money revolution

The Corona crisis triggers a small revolution in Germany.

Since the beginning of the epidemic, cash has been abandoned more and more for reasons of hygiene.

Paying by card or even by mobile phone is experiencing a boom in the land of cash lovers.

Source: WORLD