Germany plans mandatory digital payments and electronic receipts

The German government is advancing significant regulatory changes to modernize the country's financial and retail landscape. The Federal Ministry of Finance plans to mandate that businesses, restaurants, and service providers offer at least one digital payment option starting in 2027. While cash remains legal to ensure consumer choice, the move aims to combat tax evasion, money laundering, and financial crime by creating traceable digital footprints. At least one European payment method must be accepted.

In a related move to reduce bureaucracy and prevent tax fraud, the German cabinet has approved a draft law to phase out paper receipts. By 2028, digital receipts are expected to become the standard. Additionally, companies with an annual turnover exceeding 100,000 euros will be required to use electronic cash register systems to replace 'open cash registers' that currently rely on manual or handwritten records. Small businesses with annual cash turnovers under 12,000 euros will be exempt.

The proposals have met with criticism from the German Retail Association (HDE), which argues that a mandatory acceptance of digital payments is unnecessary, creates bureaucratic hurdles, and primarily benefits global card providers. Meanwhile, the banking sector is also undergoing shifts, with Sparkasse initiating a major modernization of its card systems, replacing approximately 14 million Girocards with a new design.