The ongoing move away from cash and towards payment by card or smartphone has gained significant pace in recent months. During the current crisis, digital payment technology has quickly taken hold in retail.

The pandemic has succeeded in eroding ingrained habits. In a representative survey by the digital association Bitkom, three quarters of respondents said they are avoiding cash payments wherever possible while the coronavirus holds sway. Seven out of ten would like to see more opportunities for contactless payment. As well as being hygienic, contactless payment by card or smartphone is fast and highly secure. Yet although many people want more digital payment opportunities, retailers in Germany still have some catching up to do. The industry association Bitkom believes that at least one common digital payment option should be available to customers throughout Europe at every point of sale in the future.

This is not about abolishing cash but about offering an additional payment option. It is not possible to give a universal answer to the question of which payment method is the cheapest for retailers. As far as retailers are concerned, fees for cashless payment have certainly been heading in the right direction for several years. A minimum charge of eight cents was formerly applied to Girocard transactions, in addition to processing fees. The fees often cannibalize profits, particularly in the case of low-priced products. On the other hand, operating expenses for accounting and handling are typically higher for cash than for cashless payments.

In many places, amounts of up to EUR 50 can now be paid without handing over the card and typing in a PIN. Previously, the limit for PIN-free contactless payment was EUR 25. Mobile payments via smartphone are gaining traction as a way of avoiding PIN entry for sums above EUR 50. Smartphone payments can be approved securely via fingerprint or face recognition, thus speeding up the process at the till. Cash is thus no longer quickest.

Removal of value limits

In order to promote card payment and payment via Smartphone or Smartwatch in a proactive manner, Bitkom proposes to abolish the value limits for digital payments. This is because many retailers have refused to accept digital payments below a certain amount so far. Customers are then forced to resort back to cash. Bitkom also wants to see financial support for the introduction of terminals for electronic payment, which would help retailers to provide new payment options.

In order to promote card payment and payment via Smartphone or Smartwatch in a proactive manner, Bitkom proposes to abolish the value limits for digital payments. This is because many retailers have refused to accept digital payments below a certain amount so far. Customers are then forced to resort back to cash. Bitkom also wants to see financial support for the introduction of terminals for electronic payment, which would help retailers to provide new payment options.

Finally, payment flexibility is also in demand in the cloud. In Google Cloud, for instance, cloud billing concepts allow settlement in all manner of ways in order to meet customer requirements. Detailed information on cloud billing is available here.

 

Quelle Titelbild: Unsplash / cardmapr

 

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