On September 11, 2026, a dpa news report spread like wildfire: “Card Payments: Retailers and Restaurants May Be Required to Accept Card Payments in the Future.” There isn’t much more information available at this point; it’s possible that by the time this article is published, the news will already have been superseded by the release of a draft bill—but there will likely still be a need for discussion even after that. But let’s start at the beginning.

What the Coalition Agreement Says

The coalition parties CDU/CSU and SPD of the 21st Bundestag agreed on the following in the coalition agreement dated May 5, 2025: “We are committed to genuine freedom of choice in payment transactions and want cash and at least one digital payment option to be gradually made available as a matter of principle.” And in the sentence preceding it: “We will ensure that everyone can continue to decide for themselves how they pay for everyday purchases.”

This is likely to form the basis for the draft bill as well, meaning that people who prefer to pay with cash will still be able to do so—even at stores that have already stopped accepting cash. That way, a secret visit to the ice cream shop can remain undiscovered.

What does “gradually” mean?

The more interesting part is in the second clause—“a digital payment option” and “gradual.” “Gradual” can mean many things, such as a phased approach based on revenue or business size, application to specific industries with later expansion, an obligation initially without penalties, a kind of grandfather clause, or even that there won’t be any “gradual” implementation at all.

What does “European” mean?

This raises the question of what “a digital payment option” might mean and whether it will remain as stated in the coalition agreement. According to the key points document reported on by dpa and ZDF, the digital payment option is to be a European one, and businesses subject to the requirement will have a choice. There are to be no sales thresholds.

This cannot refer to the digital euro, since it will not enter pilot operations until the second half of 2027 at the earliest, and acceptance is expected to become mandatory later (in 2029) anyway. So what does “European” mean in this context? A well-known wallet provider based in Luxembourg; international card brands, because the card-issuing bank is licensed in Europe; or only well-known national methods as well as new European A2A-based methods?

The frequently used headline “Every business will soon have to offer card payments ” is misleading in this respect, but it does reveal a tendency to copy headlines from one another or have them copied.

What’s the point of all this?

But why is such a legislative proposal necessary in the first place? A commitment to cash is one thing, but why the “digital payment option”? Perhaps because a politician was annoyed by the many LinkedIn posts saying “cash only” or “card payments only for amounts over 10 euros”? Or because it’s time for a “major economic stimulus package for payment service providers” to offset the ever-increasing regulatory requirements for regulated companies? An obvious reason could be the fight against tax evasion. But does that really help? Let’s take a closer look.

The Perspectives of Those Involved

People want to pay according to their own preferences—using their favorite wallet, their favorite card, or other methods, in addition to cash, of course. The reasons for this are varied. People want to earn points, perhaps pay later—but in any case, they want the process to be simple, secure, fast, and free. A requirement to offer digital payments would therefore be nothing but an advantage.

Businesses want it to be affordable and secure, and accounting shouldn’t get any more complicated either. Costs are part of the overall calculation and are indirectly paid for by the end customer. SoftPOS and “pay-as-you-go” offerings provide an affordable way to get started. And the reason why one dry cleaner manages to come up with a suitable cost estimate while another doesn’t likely has less to do with digital payments. The question remains, however, whether a business can afford to offer only one payment method and have to make do with accepting cash from customers who don’t want to or can’t use it.

Payment providers are also unlikely to object, though a certain level of revenue is necessary; otherwise, the acquisition, onboarding, and KYC costs won’t pay off.

Additional perspectives can be found in the German Bundestag’s lobby registry—there is already a great deal of activity there.

No Cash Register, No Oversight

In addition to the attempt to make citizens and voters a little happier, it could indeed be a matter of combating tax evasion. But then businesses must also be audited, and sanctions are needed in the event of violations. And cash hasn’t disappeared as a result. This is where the cash register comes into play—or, to put it more formally, the draft “Law on the Introduction of a Mandatory Cash Register System, the Fight Against Tax Evasion, and the Further Digitalization of Tax Law.” Aside from the barely comprehensible half-heartedness of this endeavor (extensive exemptions and, above all, the very late implementation), it is unclear why mandating the acceptance of a digital payment option would help.

A Look Abroad

Looking at other countries—such as Italy, Hungary, Belgium, Poland, Romania, Greece, and Slovakia—could help in drafting the law on mandatory acceptance. In Italy, such obligations have been in place since 2014, though penalties were not introduced until 2022. The road to getting there has been bumpy, to say the least. The common thread in all these countries: taxes.

The impact on tax revenue has been disappointing. It was only after the mandatory use of POS terminals and other measures were implemented that the government’s coffers saw an increase of several billion. In Greece and Italy, payment service providers are required to report data from connected merchants centrally to a government agency. As part of the implementation of the mandatory cash register requirement, this information was integrated. The effectiveness of laws also depends on how well they are enforced.

Are ordinary citizens any better off?

Neither the ice cream shop nor the dry cleaner—and certainly not the restaurant industry, which, as is well known, passed on the VAT reduction in full to customers—needs to worry solely because of the requirement to accept a digital payment method.

So, when it comes to the recitals, that leaves only the happy citizen. Since Germany ranks only 17th in the 2026 World Happiness Report, behind Kosovo, perhaps that’s motivation enough.

Combined with a health insurance and registration package, things would look quite different.