Germany to mandate digital payment options for most merchants

Under new regulations, German merchants must provide at least one digital payment option that originates from Europe, though they can decide which system to use. The rule also permits digital payments for low-value transactions and bans any additional charge to the buyer for using such methods. Customers will retain the freedom to pay in cash, by card or through other cashless means.

The law will not apply to non-profit organisations, amateur sports clubs, charitable associations or occasional village fairs and flea markets, and the ministry is considering further exemptions where implementation would be excessively costly or complex. The finance ministry is finalising the details with other departments, citing tax evasion and money-laundering concerns as motivations, while noting that digital payments already accounted for 55 % of transactions last year and continue to grow.