Dec 31, 2024
Germany: Cost of cash / cash or debit card less costly than with credit card
2. Germany: Cost of cash / cash or debit card less costly than with credit card
Source: BIN
The Deutsche Bundesbank has conducted a study about 'Costs of cash and card payments from a consumer perspective' in 2023.
Key Extract / Learnings:
Paying with cash (or a debit card) is the cheapest payment method for consumers in Germany.
Cash incurs the lowest costs per payment transaction, while debit cards are cheapest in relation to the amount of money spent. Paying with a credit card is in any case considerably more expensive
Consumers in Germany do not see much difference between the costs of using cash or a debit card, explains Bundesbank Executive Board member Mr. Burkhard Balz. In terms of costs, cash can therefore certainly hold its own in relation to digital means of payments.
The study reveals the relatively high costs associated with disclosing data when making non-cash payments. This underscores how sensible it is for the digital euro to be created as a low-data alternative to existing digital payment methods.
The study also quantifies the benefits of cash for consumers. The survey asked consumers how much money they would be prepared to pay in order to be able to use cash. 26 % said they would be unwilling to switch away from cash even for a price reduction of €3.
Sample Size / Market Research:
To determine the costs that consumers incur through use of means of payment, the market research institute Forsa has commissioned on behalf of the Deutsche Bundesbank (Central Bank of Germany) a representative survey.
Overall 2,001 German-speaking people were surveyed in 2023, who had a checking account and at least are 18 years old.