Germany: Cash is Cheapest Payment Instrument for Retailers

A new Deutsche Bundesbank study, ‘The cost of payment methods in the retail sector accessible’, analyses both monetary costs – fees, charges, equipment and transport costs – and non-monetary costs – the time spent by retailers using payment instruments at the point of sale or for administrative expenses ¹.

This report synthesises findings from extensive research, including surveys of hundreds of German retailers, transaction time measurements, and international comparative studies. It provides a detailed, structured analysis of the cost efficiency of different payment methods in German retail, segmented by company size, industry, and transaction value.

Cash cheapest in terms of cost per payment 

Cash remains the most cost-efficient payment method for small transaction amounts (up to €20). The average cost per cash transaction is €0.43, primarily due to minimal device costs and absence of transaction fees. Cash payments require simple infrastructure—mainly cash registers and secure storage—resulting in low monetary costs.