Postbank customers can now withdraw or deposit up to 1,000 euros at supermarket checkouts using the ‘Cash via Barcode’ feature, available at 12,500 locations across Germany. This service facilitates cash withdrawals during shopping but comes with challenges for retailers, including rising transaction fees. While cash withdrawals surged significantly in recent years, the decline of ATMs and increasing preference for cashless payments raise concerns about future cash availability and potential bottlenecks at checkouts.
As of today, Postbank customers can now conveniently withdraw or deposit up to 1,000 euros at supermarket checkouts, enhancing the shopping experience with the new cashback service. While this trend is gaining traction among consumers, it presents certain challenges for retailers.
Enhanced Cash Withdrawal Options
Postbank customers now have the opportunity to withdraw a maximum of 999.99 euros daily at 12,500 supermarkets and drugstores across the country, thanks to the launch of the ‘Cash via Barcode’ feature. Notable retail partners include Rewe, Penny, Rossmann, and dm. This new service aligns with the growing consumer preference for cash withdrawals during shopping.
How to Use the Cash via Barcode Service
With the ‘Cash via Barcode’ service, customers can easily withdraw cash at various retail checkouts. As per the EHI Retail Institute, grocery stores, drugstores, and hardware stores have already been offering cashback services. Customers can make a purchase as low as 0.01 euros to be eligible for cash payouts, though typical minimum purchases range from five to twenty euros, with a maximum cash payout of 200 euros. Currently, deposits are a new addition to this service, allowing Postbank customers to handle their banking needs more seamlessly.
To use this service, customers must generate a barcode through the Postbank app and present it at the checkout within two hours. It’s important to note that having a checking account with Postbank is a prerequisite for this feature. The service is expected to expand to Deutsche Bank customers in the latter half of next year.
Despite the convenience of this service, a Postbank representative clarified that cash payouts at retail locations are not guaranteed. However, experiences from partner retailers indicate that the service generally operates smoothly. To manage cash availability, the barcode system limits cash payouts to 300 euros per transaction, allowing customers to generate additional barcodes if they require more cash. Retailers can then refer customers to different checkouts or access cash from their safes if needed.
Impacts on Retailers and Cash Accessibility
The rise of cash payouts at supermarket checkouts has led to an increasing number of transactions. In fact, a recent study by the EHI Retail Institute noted that consumers withdrew a staggering 12.31 billion euros through 122 million payout transactions last year, a significant increase from 2022.
However, this trend has its downsides for retailers, who face transaction fees associated with these services. According to EHI, fees paid by retailers to the banking sector for these cash services surged from 3.2 million euros in 2019 to 17.2 million euros in 2023. Retailers express frustration over having to pay fees for a service that substitutes for the declining number of ATMs.
Additionally, fewer ATMs and branches have made cash withdrawals more challenging in Germany. The growing preference for cashless payments has further complicated matters, with card-based sales in physical retail reaching a record 300 billion euros in 2023. This has resulted in cash transactions dropping to just 35.5 percent of total sales.
Concerns are mounting regarding potential cash shortages in the future, as increasing consumer demand for cash may not align with the diminishing availability of cash due to the rising popularity of card payments. Study author Horst Rüter warns that this mismatch could lead to bottlenecks at checkouts, affecting the availability of cash services in the years to come.