Germany plans mandate for digital payments by 2027

Germany is considering significant reforms to its payment landscape. Federal Finance Minister Lars Klingbeil is proposing legislation that would require businesses, restaurants, and service providers to accept at least one form of digital payment, such as cards or smartphones, in addition to cash. The goal is to implement this by 2027, with a draft law expected in the cabinet later this year. Proponents argue that digital payments increase transparency and help combat tax evasion and money laundering.

A YouGov survey for the Genoverband found that 56 percent of adults in Germany experienced difficulty paying digitally at least once this year, an increase from 45 percent in 2021. While the proposal has received support from many Volksbank executives, retail representatives have expressed concerns regarding transaction fees and the potential financial burden on small businesses.

Separately, new EU-wide regulations are set to take effect in July 2027, introducing a 10,000 euro limit on cash payments for commercial transactions to prevent terrorism financing and money laundering. In Germany, this will also involve stricter identification and documentation requirements for cash transactions starting at 3,000 euros.