The pros and cons of cashless payments

Bargeldloses Bezahlen am Terminal

What is loved by some is watched with discomfort by others.

Cashless payment is becoming more and more popular in Germany. In 2020, around half of all transactions were made with a bank card or smartphone.

But what motivates you to pay by card and why can't you separate others from your cash? I will go into more detail about the advantages and disadvantages of card payment in this article.

Social acceptance:

The saying: "Only cash is true" comes from a time when card payments were not yet socially accepted. Like many other technologies, cashless payment took time before it could be used more widely and the necessary trust had been created in society.

Early adopters (translated "early users") were there, as with many other technologies, people who recognized the advantages of cashless payment at an early stage and who demonstrated the security and suitability for everyday use of this payment method.

But what advantages made cashless payment so attractive that it was used more and more widely?

"People always take the path of least resistance."


Card payments are not only significantly faster, they also do not require change.

The coins that are no longer needed and the small card shape mean that you no longer have to take a large and bulky wallet with you. The resulting slim wallet usually only offers space for cards, bills and, if at all, a small number of coins.

Another advantage is that bank cards, unlike cash, cannot be used independently of the user, which makes card theft uninteresting.

So you no longer have to worry about being robbed or worrying about how much cash you have to take with you to go out to dinner in the evening.

Digital money:

Furthermore, card payment allows you to take advantage of digital money.

Payments by card are not only easier to see and understand, but also save you the regular trip to the ATM. It is no longer necessary to exchange currencies before your trip: you can conveniently process your payments abroad in your local currency.

Credit cards have not only simplified payment at the checkout, but also enable quick and easy payment on the Internet.

While there are many arguments in favor of card payments, there are a few points to keep in mind

Unwanted withdrawals:

While money on your bank card cannot be stolen and used as easily as cash, it is also not completely safe from fraudulent activity.

If your bank card allows contactless payment, a card reader or smartphone can read your card at a certain distance and withdraw money.

In this article, I address this problem and what you can do about it.

Hidden fees and credit card interest

Fast and convenient payment at the supermarket checkout is very convenient, but in some cases it can also be associated with enormous costs.

While one is well aware of their monthly credit card usage fee, many are unsure if and how much they pay per transaction.

If you then also overdraw your credit card, there may be high interest rates on the amount you overdid.

The lack of a feeling of having spent money

Unlike with cash, where you can see how much money is going through your hands, the inhibition threshold when paying by card is significantly lower. The only clue you get about how much money you just spent is what number is shown on the screen in front of you.

Collection of personal data and your shopping behavior

In the same breath that you provide Payback cards with your shopping behavior for evaluation in order to get a shopping discount, your bank also collects your data.

The efforts of Google, Amazon and Apple show that this data is also valuable for other companies. With their payment services Google Pay, Amazon Pay and Apple Pay, they want to gain insights into the purchasing behavior of customers in retail.

While this is not a problem for many, one should be aware of this process of systematically collecting data .

With a future, worldwide abolition of cash and payment processing by digital companies, there will be a shift in control. The anonymity and freedom that cash trading offers and the associated control of citizens over their money can be restricted in digital payment transactions.

Control falls into the hands of corporations and governments.

In extreme cases, they can then decide what we can spend our money on and thus establish a reward and punishment system.

The future of money transfer:

Payment by card is always on the rise. Governments and organizations are campaigning on a large scale for the abolition of cash, starting with the €500 bill.

A cashless society will become more and more digitized with the increasing acceptance of card payments and payments with smartphones and will finally part with the differently colored bills and minted coins.


People's convenience has made card payments a strong part of our society. Card payment not only allows you to pay quickly, but also allows you to switch to a smaller wallet , since you don’t have to take any or less cash with you in your wallet.

Nevertheless, when paying with a card, there is no feeling of how much money you have spent.

For this purpose, payment service providers collect your data in order to evaluate and sell them.

The shifting of control over a digitized currency from citizen to corporation or state can become a system of rewards and punishments in undemocratic government.

Our society, which is becoming more and more digital, will continue to separate itself from cash transactions as the acceptance of card payments and payments with smartphones increases.

Reading next

8 Dinge die einen guten Geldbeutel ausmachen - Kaufkriterien für Geldbeutel - Lockcard


Stuhr, kai

Stuhr, kai

Bargeld vor ever, niemals von der Karte abhängig machen. Wer mit Karte bezahlt, macht sich Glaesern und das hat mit Demokratie nix mehr zu tun. Eher mit Kontrolle…..



Dominik Hazoth

Dominik Hazoth

einen Organspendeausweis bekommt man auch noch gratis bei euch im passendem Format.

Nutze seit, also lange, schon ein Wallet und zuhause in den Halterung und unterwegs klein unauffällig egal welche Hose man trägt. MEGA GUT das ding!

Leave a comment

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.