Germany's payment landscape shifts: Cashless transactions lead, but cash remains popular

Frankfurt - Card and smartphone are replacing notes and coins. Consumers in Germany made their daily purchases more frequently without cash last year, a representative study by the Bundesbank has revealed. Cash was still by far the most used payment method in Germany in 2025, but for the first time since the central bank's initial analysis in 2008, cashless payment methods have taken the overall lead.

“The trend towards cashless payments is continuing,” said Bundesbank board member Burkhard Balz in Frankfurt. Last year, people in Germany paid without cash in more than half of all cases (55 percent). The Bundesbank established this based on payment behaviour data collected between September 8 and December 2, 2025.

Germans frequently use the Girocard – as a card or mobile

The debit card (26 percent) was used most frequently, especially the Girocard, which is often still called the EC card. Debit cards accounted for the largest share of total transaction value, as they are more frequently used for larger purchases, a trend consistent with 2023. This figure fell by 4 percentage points to 28 percent.

The number of mobile payment transactions using a smartphone or smartwatch increased by another four percentage points to 10 percent compared to the previous survey.

Cash remains popular

According to the findings, people used cash for 45 percent of all payments. This figure remains very high compared to the rest of Europe. In 2023, cash payments in Germany still led at 51 percent, while in 2008 the figure was as high as 83 percent.

Older people and those with health restrictions tend to use cash more frequently. The same is true for individuals with low incomes or limited digital experience. 12 percent of respondents stated that they would have great difficulty managing their daily affairs without cash. According to the survey, this is at least partially true for a further 29 percent.

“Regardless of personal preferences, 80 percent of respondents consider it important that it is still possible to pay in cash,” Balz explained. Accessing cash is becoming more difficult, particularly in rural areas, as ATMs are removed and bank branches close. Respondents could pay for in-store purchases with cash in 94 percent of cases. Cash is less frequently accepted on public transport and at retail self-service checkouts, however.

Bundesbank: Ensuring freedom of choice in payment

Despite the trend towards digitalisation, paying without notes and coins is not yet possible everywhere. Approximately a quarter of respondents reported being unable to make a desired cashless payment on at least one occasion. People must be able to “pay with cash and without, according to their own needs,” Balz emphasised. “Complete freedom of choice is not currently available.”

Both the European Central Bank (ECB) and the EU Commission have repeatedly countered fears that cash could be abolished. A June 2023 proposal from the Brussels authority for a legal framework stipulates that the digital euro, which central banks have been developing for years, will become legal tender. It is not intended to replace notes and coins, however. The EU Commission also wants to legislate to ensure that cash remains widely accepted and readily available throughout the European Union.