The total cost of handling physical cash in the German economy has been estimated at EUR12.5 billion per year, by a team of academics in Berlin. The study, conducted by the Research Center for Financial Services at Steinbeis University, found that each German citizen pays around EUR150 per year to keep the cash system running.
Cash costs add up throughout the whole cash cycle: from production costs, transportation costs, insurance costs, cash handling, security and through to losses of interest. With EUR6.7 billion, the largest burden is carried by merchants, followed by banks with EUR4.5 billion.
The study explores a number of ways countries can reduce cash payments including implementation of limits for cash transaction amounts that exceed a specific level and banning/ limiting cash payments for cigarettes and other cash-based vending machines.
The report’s author Professor Jens Kleine says: „In order to reduce the cost of the payment system, individuals need to understand the real costs of the different payment methods.”
Javier Perez, President of MasterCard Europe, commented:“The use of cash, which is still significant in many countries around Europe, comes at a high cost to the economy. We believe that innovation in electronic payments not only delivers greater transparency of transaction but, as we see from today’s report, creates a more cost effective way of paying for all stakeholders.”
„Tendinţele pe care le-am remarcat înainte de începerea pandemiei s-au accelerat pe perioada stării de urgenţă. Am văzut acest lucru ca o oportunitate, un tipping point pentru bancă. Post-pandemie nu avem cum sa ne întoarcem la comportamentul financiar pe care îl aveam până în februarie a.c. Relaţia românilor cu online-ul s-a schimbat. In plus, cardul fizic se va dematerializa. Vom asista la o scădere a cererii pentru cardurile fizice, respectiv la o creştere a preferinţei pentru componenta digitală a acestora.”