Nowadays there are already different payment options. In Germany we still pay more and more with cash, but contactless payment has increased due to the corona pandemic. What could payment look like in the future?
How has payment behavior changed during the Corona crisis?
Before the corona pandemic, Germans were increasingly paying in cash. 45% of Germans still use cash. However, that changed during Corona. More and more are resorting to contactless payment methods, so that we only have a 29% share of cash payers. Paying with an EC or credit card has now become established. It is not yet possible to say exactly what the pandemic will look like.
Card payment with PIN entry or signature takes longer than cash payment
Usually paying with cash takes between 15-25 seconds while paying with card takes about 30 seconds. The reason for this is that when paying by card you either have to enter your PIN or a signature is required. Thanks to new technologies such as the NFC function, entering a PIN or signing is no longer necessary for some payments. Then the card payment will be much more convenient and faster.
Online payment has been established in e-commerce for years
In online retail, there are usually several options for the customer to pay for the goods. However, not all retailers offer payment by invoice and direct debit is often excluded. Here the online retailer risks that the customer does not pay for the goods or that the direct debit is reversed. That would mean a lot of administrative work. That is why online payment service providers such as Paypal or Klarna have established themselves. The customer has to connect his bank details to Paypal or Klarna so that the amount is then debited. Additional security such as buyer protection make these payment service providers even more attractive for customers.
Payment behavior of Germans: will paying with a smartphone be the future?
Mobile payment works on a similar principle. Since almost everyone has a smartphone with them these days, mobile payment will also be a part of the future. Here, the bank account is linked with Google Pay or Apple Pay, for example, and then paid at the checkout with the smartphone. The amount will then be deducted from the bank account. In China, the majority of the population already uses smartphones to pay.
An interactive infographic Hegner & Moeller GmbH A country comparison shows, among other things, what percentage of the population still uses cash. How has payment behavior changed as a result of the corona pandemic and which payment methods will the future belong to?
Also read: Brick and mortar retail – what’s coming for retailers and consumers in the near future