What does the study analyse?
The study, commissioned by the Deutsche Bundesbank, is based on a representative survey of 2001 people in 2023. The aim was to calculate the total costs of cash, debit and credit card payments. Both monetary (e.g. fees, financial losses) and non-monetary costs (e.g. time spent, data disclosure) were included.
The most important results
Cash: Cheap but time-consuming
Cash has the lowest cost per transaction. But the benefits don’t stop there: Most Germans trust cash, especially because of its privacy protection. Almost 85 per cent of respondents cited cash as the most secure payment method in terms of data protection.
However, the non-monetary costs, such as the time involved, should not be underestimated. On average, it takes longer to go to the cash machine and pay at the checkout than it does to make a card payment. In total, cash users spend about 5.3 hours per year.
Debit cards: efficient but not anonymous
Debit cards offer a good balance between cost and time. They are even cheaper than cash in terms of transaction value. The average monthly fee for debit cards is around €2, which is significantly lower than the cost of credit cards.
However, the use of debit cards is associated with less anonymity. The data collected during transactions can be used by banks and merchants, which can be a disadvantage for privacy-conscious consumers.
Credit cards: convenient but expensive
Credit cards are the most expensive of the three options analysed. With an average monthly fee of €4.50 and higher fees per transaction, they carry a significant weight. There are also potential risks, such as fraud or misuse, which, although partly covered by legislation, can cause additional concern.
Nevertheless, credit cards offer advantages: they can be used flexibly and are indispensable, especially when shopping online or travelling. But this convenience comes at a price.
Time expenditure and data protection as important factors
A key aspect of the study is the time taken. Cash payments take an average of 18.7 seconds in physical stores, while card payments take around 20.1 seconds. Interestingly, mobile payment methods such as contactless card payments or smartphone apps reduce the time required.
Data protection is also an increasingly important consideration. While cash payments are virtually anonymous, card payments and digital payment methods in particular leave a data trail. Around 75 per cent of respondents consider mobile payment methods to be the least secure option in terms of protecting their privacy.
A question of priorities
The study shows that the choice of payment method is not just about cost. Consumers should consider which factors are more important to them: Cost savings, time expenditure or data protection. Cash is still competitive and enjoys a high level of trust, while debit cards score points for efficiency and low cost. Credit cards remain a more expensive but convenient alternative.
Cash remains an indispensable means of payment for most Germans. Even if financial incentives were offered, the majority of consumers would not be prepared to give it up. Freedom of choice between payment methods therefore remains a key factor – and a luxury that Germans appreciate.
Consumers' view of the cost of cash and card payments
translated with deepl.com
