According to the latest study by Germany's central bank, the Bundesbank, on payment behavior, Germans pay for nearly 60 percent of their purchases—both goods and services—in cash. Germany is not the only country standing athwart the global trend toward cashless payments.
When it comes to making payments, cash is still by far the most popular in Germany,” explained Johannes Beermann, the Deutsche Bundesbank board member responsible for cash. Beermann was addressing the German central bank's new report, its sixth study, looking into payments behaviour in the country in 2021.
What is the most common form of payment in Germany?
Cash. Despite the rise of cashless payments, cash continues to be one of the favorite payment methods in Germany. A 2021 report by the Deutsche Bundesbank found that German citizens paid in cash for around 58% of their total purchases.
Bulgaria has the lowest percentage of people with access to the internet out of the countries studied (70%), meaning digital payments are off boundoff-bound for many. As a result, 74% of all payments are cash-based in the country and there are 91 ATMs per 100,000 adults.
Detailed Solution. The correct answer is Sweden. Sweden is World's first country to have a cashless economy. In 2023, Sweden is proudly becoming the first cashless nation in the world, with an economy that goes 100 percent digital.
But in Germany, an obsession with privacy, mistrust of big-tech and fintech in general, and worries about political and financial crises depleting bank balances overnight—an experience rooted in history as well as a cultural desire for control—all contribute to the country's love for cash.
Debit cards and major credit cards (American Express, Visa, Mastercard) may often also be used, but smaller shops and cafés might only accept cash payments. Therefore, visitors should always have some euro bills and coins on hand.
Because a salary in Germany comprises more comprehensive social security and health insurance benefits than in most other countries in the world, half of which is paid by the employer so that the acutal cost of employing someone is about 25% higher than their salary.
Any person entering Germany from a non-EU country and carrying cash with a total value of 10,000 or more euros is obliged to declare that amount of money, immediately and unsolicited, in writing to the competent German customs authorities.
The payment trend is toward cashless, and over 3,000 ATMs have been removed from Germany in recent years. Nevertheless, a complete abolition of cash in Germany is not in the cards.
In Germany (71%) and Austria (79%), cash use is significantly higher than in other European countries. Respondents from Switzerland (63%), Ireland (61%), the Netherlands (57%), and France (55%) also show a relatively high level of cash use, but are well behind Germany and Austria.
While the future demand for cash is uncertain, it is unlikely that cash will die out any time soon. The new fiver, which entered circulation in September 2016, was our first note to be printed on polymer – a thin, flexible plastic. The £10 note followed in 2017. And in 2020, the £20 note will be printed on polymer too.
This stark contrast is mainly due to Germany's cultural aversion to credit-based financial systems. German society has historically frowned upon borrowing and favored a more conservative approach to personal finance.
Sweden's move to a cashless society is encouraged by law and in Sweden, a merchant can legally refuse cash payments. Most Swedish banks don't handle cash transactions in-branch and ATMs are not particularly common (with only 32 per 100,000 people, which is low compared to other countries.
For Germany, this means that single people who make less than €1,148 in net income a month are considered below the poverty line. For single parents with one child, that figure is €1,492, and for a household of two parents and two children, €2,410.
This can vary depending on your lifestyle and location, but generally speaking, it's safe to say that a salary of €70,000 to €80,000 per year is considered more than comfortable in Germany.
A good salary in Germany not only depends on your lifestyle but also on where you live as the cost of living differs from city to city. A good annual gross salary in Germany is between €64,000 to €81,000. But most Germans who earn a yearly gross salary of €60,000 and above are happy with their salary.
Once you're outside the UK, you can use your Lloyds Bank Visa debit card in the same way you do at home. Whether you're paying for a hotel, a meal, or buying petrol from a garage or a supermarket, you'll have the same security and peace of mind.
Bring cash. This is common in Europe and at markets of this type worldwide, but bring cash! Most of the vendors will not accept credit cards. Bring your camera.
You can use your debit or credit card at shops, restaurants and cash machines while you're away. Fees may apply when using your card outside the UK. Switch on notifications in mobile banking so you know when money goes in or out of your account.
In 2021, German households had saved a total of around 311.8 billion euros. While individual household saving patterns and circumstances differ, generally figures showed increased savings rates in recent years.
It is estimated that by the year 2043, the UK will be a completely cashless society, however this depends on how the government accepts and actions a completely cashless UK. The demise in the use of cheques shows a similar progression to cash, in which the use has plummeted.
Britain is moving in a decidedly cashless direction. In the decade between 2012 and 2022, cash payments fell from 54 per cent to 14 per cent according to UK Finance.
