Giropay says ADIEU: Millions of users have to reorient themselves!

Giropay says ADIEU: Millions of users have to reorient themselves!

Kassel, Deutschland - Kassel - Giropay, the German payment service provider, has officially announced that he will hire his services. This affects about four million users who are now facing the challenge of looking around for a new payment method. The service operated by Paydirekt had already announced its closure at the end of the year, and now the users have received termination emails in which they are informed that their access will no longer be available by December 31, 2024.

The Giropay payment procedure, which was originally launched in 2015, has proven to be very successful and, despite millions of registrations, was only able to achieve a minimal market share. Statistics show that only 25 million transactions and a payment volume of 1.6 billion euros have been handled via Giropay - which is less than one percent of the entire German online trade. For comparison: In 2023, PayPal did 28 percent of online purchases in Germany and reported over 35 million active customer accounts.

last possible uses by the end of the year

customers still have the option of using the Giropay services by the end of the year, but some retailers could possibly remove the payment method from their systems earlier. Giropay provides users that reimbursements and returns can take place by the end of January 2025, after which these inquiries go to the respective dealers. In addition, customers can redeem vouchers by December 31, 2024 at the latest.

a setback for German banks who tried to compete with Giropay. In a press release, the reasons for the closure were cited, which is part of a major restructuring. Many of the banks involved now want to concentrate on a new project called European Payments Initiative (EPI) that aims to act regardless of PayPal's dominance.

New e-commerce approach and outlook

With the launch of EPI, which has made it possible to pay for cell phone and e-commerce payments since July 2024, another step is taken in the direction of a new payment landscape in Europe. The new service is called "Wero", and the operators are optimistic that the experience with Giropay can flow into the new service.

The past few months have also been shaped by changes in other payment methods. The EC card has lost its previously used Maestro function, which indicates the changing landscape in payment transactions. Experts in the industry comment on the future of the various services and wonder whether the maintenance of Paydirekt would have been useful.

The changes in the payment service area clearly show how dynamic and challenging this market is. While Giropay is withdrawing, other providers such as PayPal have already shaped the rules of the game in online trade and are driving the next developments, so that the main topics in e-commerce will continue to focus.

Further information on this topic can be found in a detailed report on www.fnp.de .