Digital Girocard: the national alternative to PayPal and Co. starts in stages

A year after the starting signal, German banks and savings banks are preparing the next step to standardize their online payment processes. “The contractual and technical basis for the integration of the digital Girocard are currently being created,” the German banking sector (DK) said when asked by the German news agency. “The integration of the Girocard as an additional gateway into the Giropay online payment method is expected to start in the second half of the year”.

This digital tour card will first be available to customers of the cooperative financial group, and then to savings bank customers by the end of this year, “before being extended to other groups of institutions,” the five associations explained. banking organizations in Denmark. This year’s DK leader is the Federal Association of German Banks (BdB). The completion of the integration of the digital Girocard in online trading is “expected in the second half of 2022”.

In March last year, the associations announced that they would combine their Paydirekt, Giropay and Kwitt online payment methods under the Giropay brand. From 10 May 2021, consumers were introduced to the new brand in a transition phase that lasted several months.

Public, cooperative and private institutions want to enable consumers, by combining payment methods, to make online payments as easy as possible and to transfer money quickly from one account to another, regardless of which bank the account is with. ultimately. Ultimately, the domestic credit industry wants to establish an alternative to Paypal, Apple Pay and Co.

“The market for payment methods is highly competitive. It is all the more important, especially in view of a piece of national independence, that we, as the German banking sector, can offer customers a sustainable national payment method,” said the associations. sector.

According to Paydirekt, the operating company responsible for merging the online payment processes of banks and savings banks in Germany, with the savings bank financial group, the cooperative finance group, Deutsche Bank and Commerzbank, “almost the entire German banking sector with a total of approximately 1,500 banks and savings banks are involved in the implementation measures “.

According to information, the new Giropay method has so far about 7.5 million users. You can pay this way in more than 27,000 online shops and in more than 1,400 municipalities. When they started a year ago, Giropay and Paydirekt together covered around two percent of the German online payments market. According to statements made at the time, the domestic industry saw the medium-term potential to increase its market share by up to 50%. For comparison: US competitor PayPal has more than 29 million active customers in Germany, according to the latest information.


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