"Cash only" is ending: shops and restaurants must offer card payment
If you only have a card on you, you can still hit the same wall at many checkouts: no card, no coffee. That could change. Germany's Federal Finance Minister Lars Klingbeil (SPD) has put forward a key-points paper (Eckpunktepapier) under which shops, restaurants and service providers would, in future, have to offer at least one digital payment method — in addition to cash. "Cash only" signs would become a thing of the past. For now it is a draft being coordinated between the ministries — so not yet law.
What currently applies
Euro notes and coins are legal tender in Germany, which creates an obligation to accept cash. Shops, however, are not required to accept cards. Smaller shops, kiosks and restaurants in particular often take no cards today. Conversely, there are more and more cafés and self-checkouts where you cannot pay in cash — which is allowed when the merchant and customer agree on it beforehand.
What the finance ministry is planning
- Retailers, hospitality and service providers should accept at least one common digital payment method — such as card, smartphone or smartwatch.
- The business itself decides which method to offer. At least one European method must be among them.
- Cash stays mandatory: this is only about additional options.
- No turnover thresholds and no extra costs for customers — a chocolate bar should be payable cashless just like a haircut.
Who the obligation would apply to
It would affect businesses in retail, hospitality and services — wherever goods and services are paid for directly on site. Non-commercial organisations such as amateur sports clubs and charities would be exempt. At village festivals and flea markets, then, cash remains the way to go for now. The ministry is still examining whether additional hardship rules are needed.
Why it is planned
The initiative implements an agreement from the coalition treaty between the Union (CDU/CSU) and the SPD. The stated goal is freedom of choice: customers should be able to decide for themselves whether to pay in cash or digitally. The ministry also points to a second effect — digital payments are always documented and therefore help combat tax evasion, money laundering and other financial crime.
How people pay today
The trend supports the plan: last year, according to the Bundesbank, 55 percent of transactions were cashless — and rising. The debit card was used most often (26 percent), usually the Girocard. Mobile payment via smartphone or smartwatch grew to ten percent. In 45 percent of cases people still paid cash — especially older people and those with health limitations, lower incomes or less digital experience.
What happens next
First, the other ministries can comment on the key points. Changes are still possible before a draft law is written and passed in the Bundestag. The finance ministry aims to have the draft approved by the cabinet this year, with the obligation then taking effect in 2027.
