Anyone who has ever been able to pay for drinks digitally in a remote bay in an emerging country will sometimes have questions about some of the many “Cash Only” signs in German shops and restaurants. Questions from tax fairness to money laundering. Above all, he or she is likely to be annoyed if they cannot buy coffee, lunch or toys due to a lack of cash.
At least the latter could soon be over. According to a media report, shops and restaurants will in future have to accept digital payments with cards or cell phones in addition to cash, so “cash only” signs will have to disappear. Finance Minister Lars Klingbeil (SPD) has initiated a corresponding project, reports the dpa news agency, citing relevant key points of the house that are currently being coordinated with other ministries.
No more minimum sales for card payments
However, this is unlikely to be entirely uncontroversial. Euro notes and coins are legal tender in Germany. This results in an obligation to accept cash. The stores do not have to accept card payments. At the same time, Germans love cash. Despite cell phone payments or credit cards, this payment method is particularly widespread in this country compared to other countries. There is even a saying: “Only cash is truth,” say the supporters.
At the same time, there are more and more cafes and self-service checkouts in supermarkets where you cannot pay in cash. This is possible if the dealer and customer agree on it in advance. It is customary to place a sign before purchase indicating that only card payments are accepted.
According to the agency report, the aim of the current initiative is freedom of choice. The customer should be able to decide whether to pay in cash or digitally – i.e. by card, cell phone or watch. “We want companies to offer a digital payment option wherever goods and services are paid for directly on site,” says the key points.
The obligation should apply to retail, gastronomy and the service sector. Which digital payment method is offered should be the responsibility of the owner. The key points state that the “digital payment methods available and commonly used on the market” would be permitted. But at least a European procedure must be accepted. There should be no sales limits, and additional costs for card payments should not be charged. So you should be able to pay for coffee or a chocolate bar just as cashlessly as you would for a larger purchase or a visit to the hairdresser.
Mandatory should come as early as 2027
Some retailers have so far argued that they have to purchase reading devices and sometimes also pay transaction fees. In fact, according to a Bundesbank analysis from last year, businesses are cheaper when paying with notes and coins or a Girocard instead of a credit card. However, dealing with cash can also be expensive. It has to be transported and stored safely; banks often charge fees for this.
Despite all the debate, the draft is expected to be approved by the cabinet this year and then implemented in 2027. The Union and SPD had already agreed on this in the coalition agreement. But there should also be exceptions: Non-commercial organizations such as amateur sports clubs and charities should continue to be able to offer “cash only”.
Read the SPIEGEL report published in 2024 on the topic here: The last fight for cash.
