In the Coalition Agreement for the 21st Legislative Period, the Christian Democratic Union (CDU), Christian Social Union (CSU), and Social Democratic Party (SPD) outlined a political declaration of intent that could become law. They stated that businesses in Germany should offer at least one digital payment option. The most obvious payment type could be card payments because they are popular with German customers.

This article explores current and future regulations, including what businesses are affected. We also explain the prevalence of card payments in Germany and what advantages card payments offer businesses.

What’s in this article?

• Are businesses in Germany obligated to offer card payments?
  
• How will the obligation to accept card payments be regulated in the future?
  
• Who will have to offer card payments in Germany?
  
• How prevalent are card payments in Germany?
  
• What are the advantages of card payments for businesses in Germany?
  
• How Stripe Payments can help
  

Are businesses in Germany obligated to offer card payments?

Currently, there is no legal obligation in Germany for businesses to offer card payments. Businesses are free to choose which payment methods they accept. This means retailers, for example, can decide whether to accept only cash payments, only card payments, or a variety of payment options.

However, studies suggest that businesses could benefit from accepting more payment methods than cash. In 2023, 9 out of 10 German respondents surveyed stated that card payments should be accepted by every retailer. Nearly 40% stated that they had left or not entered a shop if the only payment option offered was cash.

How will the obligation to accept card payments be regulated in the future?

In Section 2.1 of the Coalition Agreement entitled “Budget, Finances, and Taxes,” the CDU, CSU, and SPD made the following declaration of intent:

“We shall ensure that, moving forward, everyone may decide for themselves how they pay for everyday transactions. We shall retain cash as a common payment method. We shall advocate for freedom of choice when it comes to payments, and in principle wish that cash and, gradually, at least one digital payment option shall be offered.”

This statement could mean businesses will no longer be able to rely exclusively on cash payments in the future. If this becomes law, businesses in Germany will be obligated to offer at least one electronic payment method, such as card or mobile payments.

Timeline

The Coalition Agreement does not explicitly mention when the obligation to accept card payments or alternative digital payment options might come into effect. This depends on what happens next with the legislative process. Currently, this is only a political declaration of intent, and at the time of publication (August 2025), a draft bill has not yet been written.

The first step would likely be to initiate conversations with retailers, industry associations, and consumer organizations. The Federal Ministry of Finance or the Federal Ministry for Economic Affairs could then coordinate with associations and federal states to draw up a corresponding proposal.

The declaration also explicitly indicates a “staggered rollout.” Therefore, businesses should expect to see transition periods and, potentially, industry-specific or turnover-based exemptions, where applicable. The latter, for example, could be a possibility for smaller enterprises that do not currently have the technology infrastructure to accept card payments.

While there is currently no concrete law in place, businesses should start preparing for the planned transition now. Those who currently only accept cash payments can implement digital payment options at any time without great effort or expense. Stripe Terminal gives businesses the ability to offer cashless payments with card readers or mobile point-of-sale terminals. Stripe Payments also provides access to more than 100 payment options. All payments can be transferred directly to the business's bookkeeping system for further processing.

What’s behind the new regulations

The German government has two primary aims in pursuing these new regulations. First, they want customers to have freedom of choice when paying, regardless of industry, type of transaction, or transaction volume. While Germany has traditionally been a cash nation, payment behavior is increasingly shifting. Giving customers the option to choose cash or digital payment methods will hopefully make businesses more customer-centric.

Second, the government aims to further accelerate digitization in the payment system. Electronic payments are faster and more transparent. This makes them easier to trace than cash payments, which can help prevent tax fraud.

Who will have to offer card payments in Germany?

The wording in the Coalition Agreement is not specific. However, business owners can assume that the planned regulations will apply to all brick-and-mortar businesses that interact directly with customers. This could be the case regardless of a business’s industry, size, and revenue category. This could include any business that sells products or services to private customers, including retailers, restaurants, sellers at weekly markets, taxi drivers, and hairdressers.

How prevalent are card payments in Germany?

The total volume of retail sales made in Germany in 2023 was €485 billion. Around €172 billion of that was paid in cash. This is about 35.5% of all sales, which was down 2% year-on-year. By contrast, card payment sales continued to increase and were around €300 billion in 2023, or about 62% of all sales.

The number of card payments is also on the rise. According to the Deutsche Bundesbank, 11.8 billion transactions were registered in 2023, up 16% year-on-year. The majority of these transactions (83%) were made using a debit card. Credit cards without a credit function were used for 15% of all electronic card payments, while cards with this function accounted for 2%.

Both turnover and number of transactions indicate that card payments have become the preferred payment option for retail purchases in Germany. The shift away from cash and toward digital payment processes sends a clear signal to German businesses that they should consider incorporating card payments. Continuing to accept only cash payments could lead to losing customers.

What are the advantages of card payments for businesses in Germany?

Accepting card payments comes with a number of advantages for German businesses:

More efficient settlement

Card payments can reduce the average time to pay at the checkout compared to cash payments. This is especially true for contactless transactions. According to a survey by the Deutsche Bundesbank, a cash payment takes around 19 seconds to complete, while a contactless card payment that doesn’t require a personal identification number (PIN) takes roughly 15 seconds. This time saving can make a difference, especially for businesses with high footfall, such as grocery stores, bakeries, or cafés. Faster payments can also mean shorter lines and more efficient processes for staff.

Better security

Businesses who only accept cash payments are generally exposed to a higher security risk. This is particularly true of industries that have high daily sales volumes. Keeping cash in the register or a safe makes businesses potential targets for theft. There is also a higher risk of internal irregularities with cash payments—such as cash register manipulation or employee skimming. On the other hand, card payments leave traceable transaction trails that are easy to document and review.

Higher sales

Early behavioral economics studies have shown that customers who pay cash feel a so-called “pain of paying” more acutely. Using cash and physically handing it over trigger a measurable aversion in the brain. With card payments, there is greater emotional distance from purchases. This can lead to customers being more likely to spend larger sums and make impulse purchases, as recent studies confirm. Therefore, offering card payments can help businesses lower the barrier to purchases, which can boost sales.

Fewer errors

German businesses are required to observe the principles for the proper management and storage of books, records, and documents in electronic form (GoBD). Card payments are registered automatically, which means they can be documented in compliance with the GoBD without the risk of tampering.

Unlike cash payments, card sales don’t require manual recording, which can help eliminate input errors, rounding differences, and missing receipts. Ideally, card transaction data is transferred directly from a business’s point-of-sale (POS) system to its bookkeeping software, which can reduce the likelihood of errors and administrative tasks. It can also decrease the risk of issues during audits, which can be a significant benefit in Germany because of its extensive administrative requirements.

Increased customer satisfaction

The option of paying by card gives customers more flexibility, convenience, and security. This can enhance customer satisfaction and loyalty. In addition, international visitors can pay by card as normal and are not reliant on cash. For German businesses in holiday regions or at airports, this can be a particularly important advantage.

How Stripe Payments can help

Stripe Payments provides a unified, global payments solution that helps any business—from scaling startups to global enterprises—accept payments online, in person, and around the world.

Stripe Payments can help you:

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Learn more about how Stripe Payments can power your online and in-person payments, or get started today.