The Covid-19 crisis has accelerated the trend towards cashless payments

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The Covid-19 crisis has accelerated the trend towards cashless payments. Almost half of Germans have changed their payment behaviors in response to the global pandemic

According to Germany Trade and Invest, Germany – a society long dominated by cash payments – has seen a marked increase in cash-free payments in stationary retail since the start of the Covid-19 crisis in the country. Although major restrictions on movement have been put in place, the country has not been in a state of complete lockdown at any time.

Almost half of Germans changing payment behavior

And customers are changing their payment behavior. Forty-three percent of people have changed their payment behavior in recent weeks according to a Bundesbank survey. More and more Germans are opting for cashless and contactless payment at the point of sale. This development has been encouraged by a number of factors since the start of the crisis.

On the one hand, there is the appeal to pay attention to what one touches, accompanied by greater caution in handling cash. Supermarkets, for example, are asking their customers to make cashless payments in order to limit the contact that their employees have with customers. The German banking industry has also increased the limit for contactless payment in the girocard system from EUR 25 to EUR 50. And many smaller shops, including bakeries and kiosks, where cash has long been the traditional method of payment, are also now offering cashless payment options.

Fintech companies supporting migration

Fintech companies have supported this rapid migration. Checkout provider Gastrofix, for example, has developed a digital support package – including card reader for contactless payment, digital menu with ordering function, and a customer database including voucher management – for restauranteurs to offer out-of-home business during the recent ban on restaurant opening.

Source: Germany Trade and Invest

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