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

One 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 bases for the integration of the digital Girocard are being created,” said the German banking sector (DK) when asked by the German press agency. “The integration of the Girocard as an additional access route into the Giropay online payment method should start in the second half of the year.”

This digital transfer card will first be offered to customers of the cooperative financial group, then to customers of savings banks by the end of the current year, “before it is deployed in other groups. of institutes”, explained the five banking associations organized in the DK. This year’s DK leader is the Federal Association of German Banks (BdB). The completion of the integration of the digital Girocard into e-commerce is “expected in the second half of 2022”.

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

Public, cooperative and private law institutes want to enable consumers, by merging payment methods, to pay online as easily as possible and to transfer money quickly from account to account – regardless of the bank with which the account is finally held. Ultimately, the national credit industry wants to establish an alternative to Paypal, Apple Pay and Co.

“The market for means of payment is highly competitive. It is all the more important – especially in view of a national independence share – that we, as the German banking industry, can offer customers a means of sustainable national payment”, affirmed the professional associations.

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

According to the information, the new Giropay method has so far about 7.5 million users. You can thus pay 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 2% of the German online payments market. According to statements made at the time, the domestic industry saw medium-term potential to increase its market share to as much as 50%. For comparison: According to the latest information, the American competitor Paypal has more than 29 million active customers in Germany.


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