Considering everyone is carrying around wads to pay in cash. Are thieves/muggings a big problem in Germany?
Not really. Things are quire cheap so you don't have to carry a lot around. Also the crime rate is really low.
Why Germans pay cash for almost everything
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Re: Why Germans pay cash for almost everything
#32According to https://www.cashforless.de/ec_cash_info/Fakten_zur_Kartenzah... methods for payments in stores 2011 was 57% cash, 5.3% credit card, 33% debit card ( https://en.wikipedia.org/wiki/Electronic_cash ). > "of course, [the Germans] attitudes toward currency must owe something to Germany’s tumultuous monetary history. During the Weimar-era hyperinflation that peaked in 1923 [...]" > "the German tendency to sett…
Your economy is much more stable than mine in the UK yet anecdotally I've observed we use cards to pay for everything. Even silly little things that only cost a couple of £. In fact it is rare that I ever carry cash. The same is true for a fair number of my friends and family as well.
I second this anecdata. I carry an Amex (credit) and a Mastercard (debit) backup. I don't carry any cash unless I know I have an imminent need.
Re: Why Germans pay cash for almost everything
#33As a Swiss German I think the currency stability argument is moot. Swiss Frank is one of the most stable currencies available and we still have a similar attitude to cash as Germans. IMO it's mainly due to the following reasons:
1) CC is slow, at least in Switzerland. Like in Germany, efficiency is baked into the culture - people hate to wait on someone paying his chocolate bar with credit card. It's also not rare for people to show you that discontempt. This trains people into behaving.
2) Switzerland, as most of Germany, is a mostly urbanized place with good public transport and facilities close to where people live. Meaning, there's way less weekly mall-shopping going on than in less dense countries like the US or France. So, the average total price is lower since shopping trips are more frequent, often about every second or third day after work.
3) Security concerns. For a long time CC were as insecure as the US ones, with a simple swipe of the magnetic stripe being sufficient, and CC fraud was relatively frequent. So, many people have an instinct of only using CC when necessary, and if at all possible not in public places. Debit card on the other hand have always been relatively secure (6-digit pin code, 3 tries), so they are used more often, maybe more so than in the German example since Swiss banks have pushed them since around 20 years ago.
Re: Why Germans pay cash for almost everything
#34In America, I would prefer to use a debit card or cash, but many credit card issuers offer 1%-3% cash back, meaning, they give back 1%-3% of the purchases you make. That amount adds up over time.
whats the fine print for your 1-3% cash back? wondered about that. Will you be sharing (allowing the card issuer) to sell meta data of your transactions?
Re: Why Germans pay cash for almost everything
#35Considering everyone is carrying around wads to pay in cash. Are thieves/muggings a big problem in Germany?
According to http://www.nationmaster.com/country-info/stats/Crime/Robberi... Germany has 65.2 robberies per 100k whereas the US is sitting at 146. Poverty rates are higher in the US but I think that Germany's relative safety is what makes people feel comfortable carrying cash. I'd go back to cash if I could, but it's not safe and the local government where I live has basically no interest in making it any safer...
Re: Why Germans pay cash for almost everything
#36According to https://www.cashforless.de/ec_cash_info/Fakten_zur_Kartenzah... methods for payments in stores 2011 was 57% cash, 5.3% credit card, 33% debit card ( https://en.wikipedia.org/wiki/Electronic_cash ). > "of course, [the Germans] attitudes toward currency must owe something to Germany’s tumultuous monetary history. During the Weimar-era hyperinflation that peaked in 1923 [...]" > "the German tendency to sett…
Did you learn about the inflation @ school? In the UK we weren't taught about the Weimar Republic's hyperinflation (in education up to 16 y/o). My friend who did history @ a more advanced level was, however.
Yes, I learned about the Weimarer Republik and it's economic issues in school in Germany. (I guess it was in 8th or 9th grade and that history class was mandatory.)
Re: Why Germans pay cash for almost everything
#37According to https://www.cashforless.de/ec_cash_info/Fakten_zur_Kartenzah... methods for payments in stores 2011 was 57% cash, 5.3% credit card, 33% debit card ( https://en.wikipedia.org/wiki/Electronic_cash ). > "of course, [the Germans] attitudes toward currency must owe something to Germany’s tumultuous monetary history. During the Weimar-era hyperinflation that peaked in 1923 [...]" > "the German tendency to sett…
Argentina has rampant cash usage at all stages of inflation, mostly for tax evasion purposes (VAT is 21%)
Re: Why Germans pay cash for almost everything
#38In America, I would prefer to use a debit card or cash, but many credit card issuers offer 1%-3% cash back, meaning, they give back 1%-3% of the purchases you make. That amount adds up over time.
Because you are paying much more in transaction fees. In the EU, transaction fees are capped at <<1% so there are no silly cash-back programs.
In the UK Amex offer a 5% cashback card right now. It's not very long term and drops to 1% after a while but hey, they exist in Europe.
Re: Why Germans pay cash for almost everything
#39"German aversion to mortgage debt is part of the reason why the country has some of the lowest homeownership rates in the developed world."
That's not just because of an aversion to debt. German Banks require a much larger down payment for their mortgages. Usually 30% or more.
Banks will also look at the physical age of the borrower. They will not hand out 20-30 year loans to someone in their 60s.
Re: Why Germans pay cash for almost everything
#40It's funny that Lidl, the store in the picture at the top of the article, is one of the stores I always pay with debit card in Germany. They have great NFC support and don't give a damn if I pay my 79¢ bread with card.