Latest Payments Europe research on the German payments landscape reveals that German consumers use cards more often than cash, prioritize security, and distrust cryptocurrencies as a payment method.
Germany, March 31, 2025 – Payments Europe, the European association of the card-based payments industry, has published a new study on the dynamic payment ecosystem in Germany. Based on a survey of consumers and merchants in both physical and online retail, the study highlights a market in transition.
Card Payments More Popular Than Cash
Germany is traditionally considered a cash – oriented country. Therefore, it is not surprising that 63% of all surveyed merchants – 10 percentage points more than the European average – name cash as the most preferred payment method. Cash payments also remain popular among consumers. However, a shift toward card payments is becoming evident: According to the survey results, more consumers have used card payments (93%) than cash (88%) in the past twelve months. Consumers particularly appreciate the convenience and ease of use of card payments in stores.
Respondents from both offline and online retail expect this trend toward card payments to continue. Currently, 35% of merchant revenue in Germany is generated through cash transactions, while card payments account for 38%. Over the next five years, merchants anticipate cash transactions to drop to 27%, while card payments are expected to rise to 42%. Additionally, 89% of merchants believe that the benefits of card payments outweigh the costs, with 58% reporting a noticeable reduction in costs over the past five years.
Greta Schulte, Board Member at Payments Europe and Director of Government & Public Affairs at Deutsche Kreditbank AG (DKB), states: “The trend is clear: German consumers increasingly prefer and use card payments – thanks to their ease of use, enhanced security, and greater efficiency in the payment process. At the same time, digital payment methods are becoming more important. Both merchants and consumers benefit from this diversity – the shift toward greater flexibility in payment transactions is undeniable.”
Mistrust of Cryptocurrencies
When choosing a payment provider, German consumers prioritize security, safety and reliability. For merchants, security is also a key criterion – alongside consumer preference and the ability to reach as many customers as possible – when selecting accepted payment methods.
German consumers are particularly skeptical about cryptocurrencies. A significant 77% consider cryptocurrencies to be untrustworthy as a payment method. A lack of trust among German consumers is also evident when it comes to real-time transfers. With this payment method, respondents are most concerned about fraud and the inability to recover funds in case of an error.
Conversely, online and card payments foster greater confidence: over two-thirds of consumers feel secure with online transactions, and nearly half consider card payments the safest method for larger purchases.