Cash For Future Why the Germans Do not Prefer Electronic Payments

Future payments are part payouts that are a result of court proceedings. These payments are mostly received in the form of structured settlements, annuities and annuity settlements. Other types of future payments include, mortgage notes, trust deeds and lottery payments. Future payments are a form of secured long-term income or simply fixed cash income.

However, there are times when people may require large amount of cash at one time. Instead of taking a loan or selling assets, people can easily sell their future payments for cash. Future payments are mostly secured payments. Hence, funding companies provide immediate cash in exchange of these payments. However, it is important to realize that cash for future payments are always available at a discounted rate.

People mostly sell their future payments to increase cash flow at present. Cash could be needed to fund investment opportunities, expensive medical care, vacations and college tuition fees. Other reasons to obtain cash for future payments could be to pay taxes or to meet unexpected financial needs. Some people prefer immediate cash to future payments as it saves them the effort of waiting for cash every month.

While selling future payments for cash, the seller can choose from various options. It is possible to sell partial payments. This means, people can sell a part of their future payments instead of selling all of them. This is done, in order to make available a particular sum of money for a specified need. Full payments can also be sold. The seller receives a lump sum equal to the discounted value of the payments sold.

Cash for future payments is also available by selling shared payments. In such cases cash for a part of the future payments sold is received immediately. The remaining cash for future payments is received on a payable date. Cash for future payments is a matter of personal choice and may even prove to be profitable, if invested well.

The world of payments is rapidly moving towards the digital options. However, still several customers use cash and they finalized their transactions by using actual cash.

Industry experts are predicting that cash will be obsolete in a few coming years. However, there is a European country which is following a totally opposite trend. In Germany, the use of physical cash is more than any other country in the world. According to a research conducted by Federal Reserve, the people of Germany use cash in 82 percent of their financial transactions. 13 percent of these transactions are executed by using debt cards while only 2 percent of the transactions are carried out using credit cards.

Germans keep more cash in their wallets as compared to the amount carried  소액결제현금화 by people in other countries. On average, each German keeps $123 in his wallet. As per the research, the average amount kept in the wallet by Germans is almost double as compared to the quantity of cash kept by people in other countries. Americans keep $74 in their wallets, on average, while the people of Netherland carries $51.

The people of Germany not only like to pay in cash but also, they want complete freedom to do so. A recommendation to limit the use of cash faced extreme opposition from consumers and political experts. According to Guardian’s report, there was a ban imposed in Germany on making any payment via cash which has worth more than 5 thousand pounds. The purpose of this ban was aimed at stopping money laundering and the use of cash to support terrorist activities. Such bans are commonly imposed in other countries of European union but in Germany, this suggestion faced strong criticism by the majority of the political groups.

According to Guardian, the head of Germany’s Central Bank, Jens Weidmann said while talking to the journalist of Germany’s newspaper named “The Bild” that if Germans get the impression that the use of cash is going to be gradually restricted in the country, it can prove to be actually fatal.

Even the newspaper was also against this suggestion. In February 2016, the newspaper published an open letter and urged the readers to sign it and send it to the finance minister.

The commitment of German people with the use of actual cash is so strong that most of the people are storing the cash in their houses. As per Wall Street Journal, the majority of Germans are withdrawing their money from banks and storing it in the safes inside their houses. This trend is so intense that a vault making company reported 25 percent increase sales increase in the first half of the year 2016. Several other such companies are delivering their maximum production in order to meet the increased demand of vaults.

Despite the fact that electronic payments have made the things extremely easy for the people, why Germans still prefer physical cash over electronic payment? One reason for this is the security. Germans believe that payments via physical cash are more safe and reliable as compared to electronic payments.

To cater these issues, it is recommended that such a payment partner should be chosen which is compliant with the standards of data security. Moreover, the payment processor chosen by German people should accept several payment options. Online traders can only accept electronic modes of payment, but if Germans are provided with multiple payment options, they can easily choose the one which is best suited to their needs and expectations.