In Spain, it is almost unthinkable to have cash on you today. Every day it is more common buy and pay for everything with a credit cardregardless of the amount. Activities such as drinking a soft drink or buying a bottle of water are currently paid for with this element. It is a habit that, since the pandemic, has permeated Spanish society but on the other hand, Germany This trend is going in the opposite direction since every day fewer citizens make payments electronically. This practice has a reason and it is something that we Spaniards should start copying. We explain why Germans no longer use credit cards.
Credit cards are being used less and less in Germany
The reason why Germans don’t “trust” the credit cards This was revealed by a Spanish woman who lives in the German country. This clearly shows that the Germans have their reasons for Do not use electronic payment methods.
Mimi Oliván is a content creator on TikTok who shares her experiences as a Spanish woman in Germany. In one of his videos, answered a subscriber’s question about Why Germans don’t pay by cardThe young woman explained that it is not about tax evasion or the underground economy, but about valuing financial confidentiality.
As this TikToker explains, privacy is something that Germans value highly. So, “They don’t trust big tech or financial companies to know where they spend their money.“Avoiding traceability of what they do with their money would be the main reason for continuing to use cash more than credit cards.
The Spanish also revealed that the Germans They usually don’t ask for loans or credit cards, and that they always have enough money in their pockets just in case.
Card and cash usage figures in Germany
We now know why Germans are reluctant to use credit cards. And the data confirms it too. According to the European Central Bank (ECB)Germany is one of the countries in the European Union where cash is most widely used. In 2019, 74% of point-of-sale transactions were made with notes and coinscompared to 19% with cards and 7% with other methods. In Spain, the percentage of cash payments was 48%, while that of cards was 46%.
Some of the reasons for this preference for cash in Germany include the culture of savings, the aversion to debt, the distrust of financial institutions that we have mentioned and the protection of privacy. In addition, Many German traders prefer to avoid commissions What does it mean to accept card payments?
However, The coronavirus pandemic has boosted the use of electronic payment methods in Germanydue to health measures and the increase in e-commerce. According to a survey by the German Institute for Economic Research (DIW), 58% of Germans paid by card at least once a week in 2020, compared to 35% in 2019.
SO, It seems that Germans are slowly changing their payment habitseven though they still have a long way to go to catch up with other more advanced countries in this regard. In the meantime, foreigners visiting Germany would do well to carry some cash with them, just in case.
