Covid-19 & Cashless Payments: Point of No Return? – A German Perspective for the Future Trend in Payment for Europe
Although cashless and contactless payments are becoming increasingly important as a result of digitalization and currently due to Corona, the fear of contactless payments still remains. Especially Germans have a special relationship to cash. According to a study on “cashless payments”, 45% of consumers in Germany do not use online banking. However, during the COVID-19 pandemic cash has been suspected of transmitting the virus. Some companies have also stopped accepting cash despite the right of the customer to pay cash. Thus, has led to an increase in cashless payments. In March 2020, the quota of contactless payments was 52% and the share of cash payments by turnover is expected to fall to 32% by 2025. Indeed, the abolition of cash could make life easier, however, the state could access citizens’ savings directly through negative interest rates, for example to finance the immense costs of corona crisis management. For cutting further cost due to low or negative interest rates, the banks could be forced to pass on the comparatively high costs of cash supply to customers in the form of higher fees for cash withdrawals or by charging fees for card payments. But even though cashless payment also might bring problems in terms of security issues, the boost of cashless payments brings important benefits.
This webinar will determine the advantages of cashless payments and will highlight how digital payments has been developed under Covid-19 as well as the impact on the industries and SMEs for future trends.