miércoles, 1 de marzo de 2023

Less is more: Why more and more German consumers are switching to cashless payments

The trend toward cashless payment has become increasingly prevalent in Germany in recent years. Credit cards, online banking and mobile payment methods such as Apple Pay or Google Wallet are being used by more and more consumers to pay for their purchases.

The topic of the abolition of the debit card in german retail chains has been the subject of much discussion in recent weeks alone. As the news magazine "Spiegel" reported just a few days ago, the German technology retail chain closely associated with Apple is abolishing Gravis is abolishing cash payments. According to the report, the measure applies to all 40 stores nationwide. The amount of the purchase is not decisive. But what are the reasons for this trend? And how will it develop in the future?

But is cashless payment really the future?

First of all, there are many advantages to going cashless.

  1. Safety:
    One of the most important advantages of cashless payment is increased security. The risk of loss or theft of cash is minimized because there is no longer any physical currency. Lost cards can be quickly blocked, and there are options such as two-factor authentication to prevent fraud.

  2. Convenience:
    Cashless payment makes the purchasing process faster and easier. Customers do not have to search for suitable change or carry around large amounts of cash. Most cashless payment systems can be be used with a single click or by scanning a QR code.

  3. Accuracy:
    Cashless payment minimizes the human errors that can occur when handling cash. can occur. Amounts are calculated accurately and there is no need for the vendor to count or hand out cash.

  4. Traceability:
    Another important characteristic of cashless transactions is that they are generally are fully traceable. Every transaction is recorded and can be easily verified if necessary.

  5. Rewards and discounts:
    Many cashless payment systems offer rewards or discounts for customers who use use this option. For example, customers can collect points that can later be exchanged for products or services.

  6. International use:
    Cashless payments can be used worldwide. This makes them a practical practical and flexible option for travelers who do not need to juggle different currencies.

  7. Hygiene:
    In times of pandemics or when infections are being transmitted, cashless payment is more hygienic and safer than using cash. Studies have shown that the virus can survive and be transmitted on paper money. can be transmitted.

  8. Eco-friendliness:
    Cashless payment is also more environmentally friendly than printing, transporting and disposing of paper money. It reduces the need for physical money and thus lowers the consumption of energy and resources that is required to produce and transport paper money.

However, the trend toward cashless payment can also be criticized.

There are fears that customers' privacy and data will be jeopardized by the increasing digitization and networking of society. The loss of freedom and independence due to the disappearance of cash is also feared.

Cashless payment methods are based on electronic systems that are susceptible to technical errors and failures. If the technology fails, there can be long waits at the checkout and delays in payment. Although such outages are rare, they can be frustrating and annoying for consumers and merchants alike.

In addition, not all consumers have access to the technologies needed for cashless payments. Older people or people with low incomes may not be able to afford expensive smartphones, or may not be familiar with the technology. If cashless payments become the only option, these consumer groups may be excluded.

The future of the Girocard: upgrading for digital use

The German banking industry has announced a further upgrade of the so called Girocard to make it more attractive for digital use and for use in online commerce. This will include functions such as payment within smartphone apps, linking with bonus programs or integration into wallets. In particular, contactless payment by card and the digital Girocard in smartphones or smartwatches are the focus of these new developments.

Contactless payments can already be made today with debit and credit cards equipped with an NFC chip. The data for payment is exchanged in encrypted form with the terminal at the checkout when customers bring their card, smartphone or smartwatch close to the terminal. smartwatch near the device.

A large proportion of the Girocards issued by banks and savings banks in Germany are already equipped with the contactless function. According to industry estimates, fast payment in passing is now possible at 95% of the more than million terminals in the retail sector.

The Girocard will therefore continue to gain in importance and will also play an important role in the digital age. With the new functions will make cashless and contactless payments easier, more convenient and more secure for customers. We look forward to seeing what other developments the future will bring.

Do you have more questions about cashless payment? Give us a call or send us an email.
We will be happy to advise you personally!

Your Smartstore Team

Email: info@smartstore.com
Fon: +49 (0)231-5335-0
SmartStore AG
Kaiserstraße 63-65
44135 Dortmund

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