Cash in Germany: an indispensable means of payment for everyone

Cash in Germany: an indispensable means of payment for everyone

Berlin (ots)

In Germany, cash is still a widespread payment method. Despite the increasing trend towards digital and contactless payment options, which was reinforced by Corona pandemic, statistics of the Bundesbank show that cash dominates 51 percent of all purchases. This payment behavior speaks for the deeply rooted preference of the Germans for cash and the associated advantages that go beyond the mere function of the money.

The meaning of cash is not only limited to economic aspects; It also serves as an inclusive means of payment that meets different social functions. For this reason, several organizations, including the Social Association of Germany (SOVD), the Deutsche Bundesbank and the German Association of Blind and Visually Impairment, have come together and created a document that emphasizes the essential role of cash in society.

cash in the social context

Michaela Engelmeier, the CEO of the SOVD, emphasizes the indispensability of cash in everyday life of many people. "Cash offers independence from technical systems as well as payment providers and credit tests at Schufa," explains Engelmeier. This independence is of crucial importance in today's digitized world, especially for people who may not have bank accounts or credit cards.

Another important aspect is protection against digital fraud attempts. Cash helps people to keep a clear overview of their expenses because it is tangible and does not disappear into virtual accounts. Engelmeier also emphasizes that cashless payment methods are often problematic for people in precarious financial positions because they do not have the necessary technical means.

• cash is uncomplicated and enables transactions without additional fees.
• at social events such as flea markets or cake sales, cash remains the preferred means of payment.
• cash donations are of crucial importance for homeless people.

Engelmeier calls on politics to recognize the importance of cash and to support its continued existence: "Cash must be preserved as a means of payment. It is an indispensable means of social inclusion and protects many people from financial risks." The politicians are encouraged to create framework conditions that will continue to use cash in the future.

the social value of cash

cash not only has an economic value; It is a symbol of social cohesion. In the case of non-commercial offers, especially in disadvantaged districts, cash often remains the means of payment of the choice, since it is both uncomplicated and does not raise any financial hurdles. These aspects are crucial to enable people to access fundamental goods and services.

Some people see cash as outdated and prefer the convenience of digital payments. But a decline in cash could have far -reaching consequences. Engelmeier and the supportive organizations focus on the value of the cash as an integrative tool for social issues. The cash is not only a means of payment, but also an important resource for social interactions and the development of communities.

The creation of a framework that takes into account both the use of cash and the security of digital payment methods could be the key to connect these two worlds and to meet the needs of all citizens. In this way, cash remains an important instrument for maintaining financial autonomy and promoting social cohesion.

The role of cash in German society

cash plays a crucial role in the daily life of the Germans. According to a study by the Deutsche Bundesbank from 2021, there are over 100 million banknotes in Germany and around 20 billion coins in circulation. Despite the increase in digital payment methods, cash remains the most used payment method. Especially with small transactions, many people continue to prefer cash payments, which indicates strong trust in physical money.

This preference is also supported by the idea that cash enables more control over finance. People often find physical money more tangible, which helps them to better understand their expenses. This tendency towards cash payments has a long tradition in Germany, where cash is regarded as a safe and anonymous path of the transaction.

integration of cash in social contexts

cash is indispensable for numerous social interactions and social contributions. In the case of flea markets, church events or social projects, cash is often used because it can be used easily and without fees. Organizations that rely on donations, such as plates or homeless homes, also benefit significantly from cash donations. These donations are often important financial support for the needy.

The importance of cash goes beyond mere paying; It also creates space for social exchange and encounters. In rural areas, where the connection to digital payment methods is often restricted, cash remains a central element in everyday life. The politicians are asked to honor not only the economic but also the social dimension of cash and take appropriate measures to maintain.

Current statistics for the use of cash

The use of cash is still high, despite the increasing spread of digital payment methods. A survey from 2023 shows that 55 % of German consumers use cash in daily small amounts. This number proves the persistent relevance of cash, even in an increasingly digitized world.

In addition, data from the Federal Statistical Office prove that more than 40 % of Germans regularly use cash for purchases of over 20 euros. This shows that cash continues to play an important role in higher price categories.

These statistics illustrate the need to continue to promote cash use and ensure that all sections of the population have access to this means of payment. According to the Bundesbank, it is essential to offer a diversified payment system that meets the different needs of citizens.

Further information on the role of cash in the German economy can be found on the website of the Deutsche Bundesbank .