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Germany : Cash payments are quick and cheap.

Cash is a quick and cheap means of payment in the German retail trade sector. On average, cash payments take just over 22 seconds and cost around 24 cent per transaction, according to a study on the costs of cash payments in the retail trade sector which the Deutsche Bundesbank carried out in cooperation with EHI Retail Institute.

Johannes Beermann, the Bundesbank Executive Board member responsible for cash management, commented that cash is still the quickest and most cost effective form of payment at the point of sale. The study found that cash payments are roughly seven seconds quicker than card and PIN payments and no less than 16 seconds faster than card and signature payments.

In terms of costs, cash payments and girocard payments do not differ by much. The study singles out cash payments of up to 50, which it found to be cheaper on account of the lower average fixed costs of cash payments. Girocard payments prove to be most cost effective for higher payment amounts.

The German retail trade sector processes roughly 20 billion transactions per year. Three out of four payments at the point of sale are settled in cash, Mr Beermann explained. However, the number of cashless payments is steadily on the rise.

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Publication:Mena Report
Date:Feb 16, 2019
Words:222
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