The Persistence of Cash in Germany's Payment Landscape

Germans continue to favor cash payments more than many of their European neighbors, despite a notable decline in cash usage over recent years. The share of cash transactions in Germany has fallen from 83% in 2008 to 51% in 2023. This contrasts with countries like Norway, Denmark, and Spain, where digital payments dominate.

While the trend toward electronic payments has benefited banks and payment service providers, experts predict a slowdown in profitability growth for these companies. The global payments revenue reached $1.8 trillion in 2022, marking a 9% increase over five years, yet only a 5% growth is anticipated until 2028. Germany's transition to digital payments remains gradual, with cash still accounting for a significant portion of transactions.

This study draws on comprehensive statistics from central banks, highlighting Germany's unique position in the evolving payment landscape.