Supermarkets in a money dilemma: withdrawing money while shopping is becoming a problem

Supermarkets in a money dilemma: withdrawing money while shopping is becoming a problem

Withdrawing money from the supermarket is becoming increasingly popular as it is convenient and hassle-free. More and more customers are using this service, which is offered by supermarkets, drugstores and hardware stores. The convenient ability to withdraw up to 200 euros when shopping has caused merchant payouts to customers to increase significantly from 2019 to 2023.

Paradoxically, the demand for withdrawing money when shopping is increasing, even though fewer and fewer people are paying with cash. This is due, among other things, to the declining number of ATMs, as Horst Rüter from the retail research institute EHI explains. Withdrawals from supermarkets are becoming increasingly attractive, especially in rural areas where bank branches and ATMs have been dismantled.

The service of withdrawing money from the supermarket is attractive to customers because it is free of additional fees and makes it easy to obtain cash. Despite these advantages, markets could face difficulties in the long term as increasing demand for cash withdrawals and reduced use of cash could affect the availability of cash in markets.

The initial benefits for merchants, such as increasing sales and improving their image, could lead to problems in the long term due to the increased demand for cash withdrawals. The study by the retail research institute EHI indicates that restrictions for customers could be likely, for example through lower limits on amounts withdrawn. Despite criticism of the fee model and the burden on markets, it is unlikely that the offer will be discontinued in the near future.