Cash Remains a Central Part of the Payment Landscape: What the Latest Payment Studies Mean for Banks, Retailers and Cash Management Providers

The latest “Payment Behaviour in Germany 2025” study by the Deutsche Bundesbank highlights a historic development in the German payments market: for the first time, more everyday payments are being made cashlessly than with cash. At the same time, the study confirms that cash continues to play a central role in daily life. These findings are complemented by recent figures from the EHI Retail Institute, which particularly underline the strong growth of mobile payment solutions.

It is important to note that the two studies examine different areas of the payment landscape. While the Bundesbank analyses payment behaviour across everyday transactions as a whole, the EHI Retail Institute focuses exclusively on stationary retail. Together, the studies provide a comprehensive picture of current developments in the payments market.

Cashless Payments Overtake Cash for the First Time

According to the Bundesbank, 55 percent of all recorded purchases in 2025 were paid for using cashless methods. Cash accounted for 45 percent of payments, representing a decline of six percentage points compared with the previous survey in 2023. As a result, cashless payments have, for the first time, overtaken cash across all everyday transactions.

After cash, debit cards remain the second most important payment method, while mobile payment options such as smartphones and smartwatches continue to gain ground.

Particularly noteworthy is the fact that mobile payments were already used for ten percent of all transactions. Internet-based payment services also doubled their share. These developments clearly demonstrate that consumers are increasingly integrating digital and convenient payment options into their daily routines.

Cash Remains Slightly Ahead in Stationary Retail

Despite declining usage shares, cash remains an important part of the payment landscape. Data from the EHI study shows that, in stationary retail, cash still narrowly outperforms card payments in terms of the number of purchases.

In addition, cash continues to play an important role in person-to-person payments, charitable donations and many other everyday situations. In stationary retail specifically, consumers still pay slightly more often with cash than with non-cash methods when measured by transaction count.

Cash acceptance also remains high. According to the Bundesbank, consumers were able to pay with cash in 94 percent of their in-store purchases. Furthermore, 80 percent of respondents consider the option to pay with cash important.

These findings highlight that the discussion should not be framed as “cash versus digital”. Instead, consumers increasingly value the freedom to choose their preferred payment method.

Mobile Payments Continue to Gain Momentum

The latest EHI figures illustrate just how rapidly payment behaviour is evolving. In 2025, mobile payments accounted for 19.3 percent of all cashless payments in stationary retail. The previous year, the figure stood at 12.8 percent. This means that nearly one in five cashless payments is now made using a smartphone or smartwatch.

A key driver of this development is the growing availability of digital wallet solutions. In addition, the opening of the iPhone’s NFC interface has created increased competition and new opportunities for mobile payment providers.

At the same time, almost nine out of ten card payments are now made contactlessly. This demonstrates how strongly digital and convenient payment processes are shaping the retail sector.

Retail Continues to Shift Towards Card Payments

The EHI study also shows that the revenue share generated through card payments in retail continues to grow, reaching 65.1 percent. Cash accounts for 32.3 percent of retail revenue. With a revenue share of 40.5 percent, the Girocard remains the most important individual card payment method in the German retail market. At the same time, international debit cards from Visa and Mastercard are becoming increasingly significant.

From a revenue perspective, card payments now clearly dominate stationary retail. However, the picture changes when looking at the number of purchases. Here, cash still narrowly leads with 50.5 percent of all transactions, compared with 48.1 percent for card payments. The gap continues to shrink year by year.

What Do These Findings Mean for Banks, Retailers and Cash Management Providers?

Together, the Bundesbank and EHI studies paint the picture of a hybrid payment ecosystem. While more cashless than cash transactions are now recorded across everyday payments overall, cash remains highly relevant in stationary retail and still holds a slight lead in terms of transaction volume. At the same time, cashless and mobile payment methods continue to gain market share.

For banks, retailers and cash management providers, this means that both worlds must function reliably. Consumers expect access to modern digital payment options as well as a secure and comprehensive cash infrastructure. At the same time, demands regarding transparency, efficiency and cost-effectiveness across the entire cash cycle continue to increase.

Digitalisation Supports the Cash Cycle as Well

As payment behaviour evolves, the requirements for managing cash processes are becoming more complex. Transparency, efficiency and availability are increasingly important throughout the entire cash logistics chain.

Digital solutions help organisations manage cash inventories, transportation processes and payment flows more efficiently while reducing administrative effort. Cash processes can therefore be operated just as modern and data-driven as digital payment systems. With solutions such as ALVARA Interactive Cash Control (ICC) and Pecunia, ALVARA supports banks, retailers and cash management providers in managing the entire cash cycle transparently and efficiently. This is achieved through the digital control and documentation of cash processes across the entire value chain.

Conclusion

The latest studies show that payment behaviour in Germany continues to evolve. Looking at all everyday transactions, more payments are now made cashlessly than with cash. In stationary retail, however, the picture is more nuanced: while card payments generate the largest share of revenue, consumers still pay slightly more often with cash when measured by the number of purchases.

At the same time, mobile payments continue to gain importance and are becoming an increasingly established payment method in retail.

The findings demonstrate that consumers are not looking for a choice between cash and digital payments, but rather the freedom to use whichever payment method best suits their needs. For banks, retailers and cash management providers, this means ensuring that both worlds work seamlessly together while keeping the underlying processes efficient and transparent.

Manage Cash Processes Efficiently

The demands placed on banks, retailers and cash management providers continue to grow. With ALVARA’s digital solutions, organisations gain transparency across the entire cash cycle, optimise operational processes and maintain full visibility of cash inventories, transports and cash movements at all times. Let us help you optimise your cash management processes.