Two explanations I've heard: (1) small-shop owners simply do not want to pay the fees to card processors and (2) people are more privacy-minded here and distrus

Two explanations I've heard: (1) small-shop owners simply do not want to pay the fees to card processors and (2) people are more privacy-minded here and distrustful of both the government and the banks, so they don't use credit/debit cards for purchases as often.