According to the results of a representative survey from October 2021, 75 percent of people would like to be able to choose whether to pay in cash or cashless. However, the market is developing in a different direction, states the Federation of German Consumer Organizations (vzbv): banks are dismantling ATMs and retailers are asking for cashless payments. According to the vzbv, this means that the federal government must make cash future-proof.
Dorothea Mohn, head of the vzbv financial market team, thinks: “Credit card providers, digital corporations, banks and parts of the retail sector are promoting cashless payments – at the expense of cash. In the interests of consumers: that’s not inside.” Most of them see it the same way: In a survey (PDF file) commissioned by the vzbv, it was found in December 2019 that 72 percent wanted to keep the cash option. Despite the pandemic, the proportion has even increased slightly in just under two years.
Control over spending
But cashless payments are also becoming more important, because the proportion of those who would forego it has almost halved in the same period (2019: 14%, 2021: 8%). 35 percent of those surveyed named “control over spending” as the most important reason for using cash, followed by “personal freedom” with 17 percent. This was followed by “habit” as well as “data protection / anonymity” and “cash as an important form of payment” with 13 percent each.
While cash remains important to people, it is getting harder to get hold of. Heiko Fürst, consultant in the vzbv market observation financial market team, explains: “The proportion of consumers who have already had problems withdrawing cash has risen in the last two years”. In 2021, 31 percent said they had at least occasional problems with withdrawing money. In 2019 it was only 24 percent.
Cash undesirable
Most often, withdrawing cash failed because there was no ATM nearby (32%) or because it was defective (25%). More than a third (38%) of all respondents had difficulties getting rid of the money: in 23 percent the merchant asked for cashless payment, 19 percent had the impression that cash was undesirable.
Mohn therefore sums up: “When it comes to cash, the market is not developing in the interests of consumers. The EU has already recognized the danger to cash and the new federal government should now take action.” It should develop a package of measures that guarantees simple and affordable access to cash in the area and ensures universal acceptance of cash in retail and catering.
[Update 28.12.2021 16:10: Übertragungsfehler korrigiert, 19% statt 29%.]
(ea)