24 Sep 2024
Did you know that 6 of 10 Germans have switched to contactless payments with their mobile phones or contactless cards, constituting 60% of the total population? This comes a long way from their apparent aversion to it in earlier years before the pandemic. COVID-19 has transformed our societies in many ways, such as how we live our daily lives. This includes the rise of trends like working from home, online grocery shopping and our general attitudes towards sanitation and hygiene. Many immigrants, too, have shifted to contactless transactions as they now prefer online money transfers. Ghanaian expatriates also prefer to make an online money transfer from Germany to Ghana.
This is because it is far more convenient, easy and hassle-free to send money online than to use other (sometimes illegal) methods of money transfer. If you are still hesitating to hop on this new tide of change, consider the following benefits of contactless payments before you make your decision:
Contactless payments have revolutionized the way we make transactions, offering convenience, speed, and security. By simply tapping or hovering your card or device over a POS, you can quickly and easily complete your purchase without the need for physical cash or inserting a card.
It means exactly what it sounds like. Making payments without having to use physical cash, using a PIN or inserting a card are termed contactless transactions. All it requires is simple tapping or hovering a card over a point-of-sale (POS). These POS have something called Near Field Communication (NFC) technology which allows them to detect your contactless-enabled card.
A range of devices can be used to make these transactions, depending on your convenience. You can use your card (credit or debit), your smartphone or a smartwatch for fast contactless payments. Germans use apps like Apple Pay, Google Pay, and Samsung Pay to make online payments. Any device that comes with built-in NFC technology can be used for contactless transactions. They can also be used to make a money transfer from Germany to Ghana without much hassle.
Another enhancement in contactless payments is coming in the form of Biometric authentication. This adds another layer of security with multi-factor authentication. In compliance with the Strong Customer Authentication (SCA), which is a European regulatory requirement. Surveys have shown that almost half the German population is already in favor of biometric payments. This also eliminates the risk of losing a standard card or getting it stolen.
When the German Finance Minister proposed a plan for discontinuing the use of cash for purchases exceeding 5000 euros, the public didn’t receive it very well. An open letter titled “Hands Off Our Cash” published in German media gained traction, showing the public’s disapproval of the plan. In general, people tend to steer away from drastic changes such as this based on fear. In this case, it was mostly the risk of losing control over one’s resources and privacy concerns. Nevertheless, not all change is bad.
German financial institutions are vigilant enough to observe and maintain strict safety protocols. Technologically advanced, they have security mechanisms such as encryption and transaction limits to prevent fraud. There are also efficient monitoring systems that track any unusual financial activity, such as unauthorized transactions. On the contrary, carrying large amounts of physical cash could prove riskier than carrying a simple contactless-enabled card.
With the changing ways of the world, people are moving towards convenience more than ever. Gone are the days of long queues and longer waiting times. Contactless payments are swift, requiring a mere tap. From paying for a coffee cup at your local café to buying your monthly groceries, you can use your NFC-equipped device for all transactions. It rids you of the hassle of scouring your wallets for cash or change.
For most expats, sending money back home is a priority but it is a task that often requires special time, and effort and often proves costly. Cash management fees and several trips to the bank are part of the entire ordeal. However, contactless payments offer great convenience to expats like Ghanaians who wish to send money online to Germany from Ghana without much hassle.
Another great benefit of going contactless, especially for expats who do not have time to keep their cash inflows and outflows in order, is free financial tracking and budgeting. Most of the payment apps and banks now offer real-time updates and a history of all of your financial transactions. This means that you can easily keep track of how much you’ve spent, how much you’ve got left and what payments are due. For Ghanaians who often send money online to Ghana from Germany, contactless transactions are not only easy but also help you avoid payment delays.
As mentioned before, Germans are increasingly more inclined towards contactless payments, especially after 2020. This means that soon, physical methods of financial transactions will go obsolete. The wise decision in this case would be to adapt to change while it is happening. Not only will it make your life easier but it will also prevent you from feeling alienated by a society that has changed its ways of daily interactions.
Germany, ahead in technological advancements, is moving speedily towards contactless payments. This is because no-contact transactions are far more convenient and secure. As an expat, if you are looking for easier and safer ways to send money to Ghana from Germany, you require a trusted service like ACE Money Transfer for your transactions. ACE is reliable, fast, easy and it values its customers.
Contactless payments use Near Field Communication (NFC) technology. Simply tap your card, smartphone, or smartwatch on the terminal to complete the transaction.
Yes, contactless payments are secure, using encryption and transaction limits to protect against fraud. Banks also monitor for unusual activity.
Yes, you can use smartphones with NFC capabilities through apps like Apple Pay, Google Pay, or Samsung Pay to make contactless payments in Germany.
Contactless payments offer convenience, enhanced security, and easy tracking of expenses, making daily life and money transfers more efficient.
Contactless payments are widely accepted across Germany, including in shops, restaurants, public transport, and supermarkets.
ACE Money Transfer allows you to send money online easily from Germany to Ghana using their secure platform. You can use debit cards, credit cards, or bank transfers for fast, reliable transactions.
