Cashless payment: Girocard payments at a record level

Status: 02/16/2022 10:34 a.m

Cashless payment is becoming increasingly popular in Germany. Never before have consumers used the Girocard as frequently as in 2021. In two thirds of the cases, contactless payments were made.

Consumers in Germany made around 5.9 billion cashless purchases last year with the Girocard – also known colloquially as an EC card. That was more transactions than ever before, as announced by the Frankfurt facility Euro Kartensysteme. The record of 5.5 billion achieved just a year earlier was exceeded by around eight percent – despite the temporary restrictions in stationary retail due to the corona pandemic.

“Contactless payment was also the driving force behind this development in 2021,” stated the joint venture of the German banking industry. The proportion of contactless Girocard payments had climbed from around 63 percent at the beginning of last year to around 73 percent by the end of the year. “Contactless payment in the Girocard system with card, smartphone or smartwatch has thus become established in the everyday life of customers.”

Two out of three payments are contactless

On average over the year, two out of three payment transactions (66.5 percent) were made contactless with the Girocard. A year earlier, the proportion was 50.1 percent. Contactless payment is possible with Girocards and credit cards that have a so-called NFC chip. In addition, money can be transferred contactlessly with a smartphone or smartwatch with services such as Apple Pay and Google Pay or with banking apps.

The data for processing the payment is exchanged in encrypted form with the terminal at the checkout when customers hold their card, smartphone or smartwatch close to the device. For small amounts, it is not even necessary to enter the secret number (PIN). This type of payment was advertised in retail during the pandemic for reasons of hygiene.

Average payment amount decreases

This is one of the reasons why the German banking industry had doubled the limit for card payments without entering a PIN in retail from 25 to 50 euros per use. Smaller shops are also increasingly offering contactless payment. As a result, consumers are increasingly paying their bills without notes and coins – even for smaller amounts.

The average amount paid with the Girocard fell further from EUR 43.14 to EUR 42.82 within a year. For contactless payments with the Girocard, on the other hand, the average amount rose from 35.31 euros to 37.70 euros. The majority of the approximately 100 million Girocards that banks and savings banks in Germany have issued to their customers are equipped with the contactless payment function. According to industry estimates, 90 to 95 percent of the more than 970,000 terminals in retail allow quick, on-the-fly payments.

The Girocard is the most popular bank card in this country. According to the Bundesbank, 95 percent of Germans have at least one Girocard. However, some experts fear that it may disappear in the future due to the stopping of the Maestro function. In addition, some institutes now have to pay a monthly fee.

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