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PayPal competition? Banks and savings banks merge services

According to the Handelsblatt, German banks and savings banks are considering merging the Paydirekt and Giropay payment services.

The Kwitt service is also to be combined with the other payment services for mobile-to-mobile payments.

It would be the first concrete step of the #DK project, which stands for “digital credit economy”.

To make PayPal more competitive, German banks and savings banks want to combine their payment services for private customers Giropay, Paydirekt and Kwitt under one brand. The “Handelsblatt” reports. First, Paydirekt and Giropay are to merge.

It would be the first concrete step of the #DK project, which stands for digital banking. It was announced a year ago that the financial sector is planning to realign its offers.

Giropay and Paydirekt only play a very small role in Germany

So far, the payment services of German banks and savings banks have only played a very small role compared to the large US provider Paypal. To a large extent, consumers pay for their online purchases by invoice. However, consumers also frequently use credit cards, direct debits and PayPal.

As the “Handelsblatt” writes, PayPal has 25.6 million customers in Germany, while Paydirekt, which started in 2015, has 3.2 million customers. From the banks’ perspective, this is a disappointment, the newspaper said. Giropay, which has been on the market for significantly longer, is also used comparatively little.

Kwitt enables payment from mobile phone to mobile phone

Kwitt, in turn, enables payments from mobile phone to mobile phone and has so far been available to customers of savings banks, Volksbanken and Raiffeisenbanken. This system is also to be combined in the new brand. It is said to be a first step in order to finally be able to stand up to the big US competitor.

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