Study: Cash no longer king in Germany as mobile payments gain ground

After decades of slow take-up, cashless payments now make up a majority of transactions in Germany, the country's central bank reported on Wednesday. 

Germany has lagged its European neighbours in the transition away from notes and coins, with many visitors to the country still surprised by the widespread survival of cash-only shops and bars. 

The trend towards a low-cash society is gaining pace, however, with the Bundesbank reporting in its biennial report on payment methods that only 45% of transactions employed cash last year, down from 51% in 2023. 

The study, based on survey responses and payment data collected between September and December 2025, found 26% of payments were made with debit cards, with 10% using mobile phones or smartwatches - up four percentage points in two years.

Measured by the size of payments, cash is only the joint-second most popular method of payment, alongside direct debits and behind debit cards. 

Older people, those with health conditions or low incomes or people without digital experience tend to use cash more frequently.

“Regardless of personal preferences, 80% of those surveyed believe it is important to be able to continue paying in cash," explained Bundesbank official Burkhald Balz. 

However, as ATMs and bank branches close, it is becoming increasingly difficult at times to obtain cash, particularly in rural areas.

Respondents were able to pay for local purchases in cash in 94% of cases; however, cash is accepted less frequently on public transport and at self-service checkouts in shops.

While cashless payments are increasingly the trend across the European Union, both the European Central Bank (ECB) and the European Commission have repeatedly sought to allay fears that cash might be abolished.