Ministry of Finance plans to make digital payments compulsory in the retail and hospitality sectors

If you don't have cash with you, you often can't pay for your kebab or coffee. That should change, the option for digital payment will become mandatory. Are notes and coins out then?

No card payment? This should no longer happen in the future. (Archive image) Photo: Peter Kneffel/dpa

Berlin. In the future, shops and restaurants will have to accept digital payments with cards or cell phones in addition to cash. “Cash only” signs should now be a thing of the past. Finance Minister Lars Klingbeil (SPD) has launched a corresponding project. According to information from the German Press Agency, the key points are currently being coordinated with the other ministries.

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. Smaller shops, late bars and restaurants in particular do not currently accept card payments.

At the same time, there are more and more cafés 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 has become common practice to put up a sign before making a purchase indicating that only card payments are accepted.

The aim 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. This will implement a project from the coalition agreement between the Union and the SPD. 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 or additional costs. 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.

To whom exceptions apply

At the same time, the ministry emphasizes the key points: paying with cash should still be possible, it's just a matter of additional options.

Yes, the obligation should only apply to companies. Non-commercial organizations such as amateur sports clubs and charities should continue to have the option of only working with cash. At village festivals, flea markets and similar occasions, it's better to keep your wallet packed. The ministry also wants to examine whether hardship regulations are necessary.

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The ministry argues that many people currently want to pay by card, but this is often not accepted, especially in smaller shops, or only accepted above a certain amount.

Digital payments also help combat tax evasion, money laundering and other financial crimes, as such payments are always documented.

About every second transaction is cashless

Last year, people in Germany paid for their daily purchases digitally slightly more often than with cash. According to the Bundesbank, 55 percent of transactions were cashless, and the value is increasing.

The debit card (26 percent) was used most frequently, mostly the Girocard, which is often still called an EC card. Cards are mainly used for larger amounts. Mobile payments with smartphones or smartwatches increased to ten percent. Citizens used cash in 45 percent of transactions. This is especially true for older people, people with health restrictions, low incomes or little digital experience.

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This is probably due to the costs. Not only do you have to purchase reading devices, but you also sometimes have to pay transaction fees. According to a Bundesbank analysis from last year, the cheapest way to do business is when customers pay with notes and coins or use the Girocard. International debit cards (Visa/Mastercard) and credit cards incur higher costs.

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The other ministries can now comment on the key points. There may still be some changes before a bill is written, as well as before a resolution in the Bundestag.

The aim of the Ministry of Finance is for the draft to be approved by the cabinet this year and then implemented in 2027.

More: People in Germany mostly pay without cash

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