Germans Prefer Card Payments To Cash, Study Finds
For the first time, the share of card transactions in the German retail market is higher than for cash, according to a study by the EHI Retail Institute.
In 2018, 48.6% of the retail transactions were made with cards, while 48.3% were cash transactions.
Card Payment Trend
These developments shows that the customer trend towards card payments, which has lasted for several years, is going to continue.
"The figures show once again that the girocard is the most popular payment method for retail customers," said HDE (Handelsverband Deutschland) payment expert Ulrich Binnebößel.
"But the girocard must also evolve in order to be able to meet the requirements of consumers and the trade concerning modern payment methods in the future."
All payment methods have to adapt to the changing purchasing behaviour of consumers, as well as the blurring boundaries between online trading and traditional business, he added.
Moreover, many retailers have their own apps that enable online shopping but also support store visits. For example, modern self-checkout solutions can make it possible for the customers to pay 'at the shelf' with their smartphones.
"Unfortunately, these so-called in-app payments are often only possible with US payment methods. The German banking industry is now challenged to accommodate traders' requirements and further develop girocard to remain competitive over the long term", said Binnebößel.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Jana Zimmermann. Click subscribe to sign up to ESM: The European Supermarket Magazine.