Institute for Simplicity

German consumers seem to understand more about complexity than we thought. Mobile payment stuggles to become popular, a recent research by Deloitte states (FAZ, 21.12.2016). Many consumers worry about security, do not see any real value in this new technology, do not know where stores accept this payment method or they simply find it too complicated.

Consumers in Germany are famous for their preference for cash. Considering aspects of complexity, using cash for payments has some advantages: no need to check the expenses later on. Once paid by cash the payment process is completed, no invoice or account statement which requires checking later on. All electronic payments at the bakery, the newspaper stand or grocery store need an additional review when the account statements arrives or the credit card company sends the bill.

Credit card and Mobile payment seem to offer convenience but in fact results in additional tasks and less clarity. In terms of complexity it is reasonable to pay most of the purchases by cash and only use cards or mobile payment methods for large bills which naturally exceed the cash on hand. Maybe the germans understand more about complexity than we expected.