More payments will be made through card than cash in Germany in 2020, according to global market research company Euromonitor International. A first in history for the German consumer payment market. Total card payment transaction value in Germany is projected to surge by 28%, while cash transactions will drop by 34% in 2019-2025, according to the report by Euromonitor International.
"As a response to the COVID-19 pandemic, German consumers showed an abrupt shift in payment behaviours, increasingly using card payments over physical cash for hygiene reasons. A growing number of them also started to use the contactless card function and smartphones for mobile payments for the first time," analyses Ratna Sita, head of DACH research at Euromonitor International.
This trend is also supported by the growing trust from consumers over their privacy around card usage. Increasing trust in security measures and assurances from issuers and merchants are strengthening consumers' confidence. Simultaneously, improved convenience over card payments without a PIN or signature become more popular. German consumers are set to become heavy payment card users by 2040, with an increase in their mobile device usage for payments.
"COVID-19 accelerated change in consumers' behaviour towards payments. In the future, the average German consumer will be older, technologically savvy and more open to new experiences, a shift from a more conservative behaviour in the past," Sita concludes.