The “EC card” for current accounts is still the most commonly used means of payment in Germany. The banks want to continue to hold on to the giro card and are planning to make it fit for the digital world. Among other things, new functions are intended to simplify online trading.
The Federal Association of German Banks (BdB) announced that it would continue to use the giro card in the future. “We want to make the Girocard even more usable with new functions in online trading and in the digital world,” says Henriette Peucker from the BdB. The industry association is thus trying to allay the concerns that arose with the planned abolition of the Maestro function from July 2023. According to Mastercard, the reason is the lack of compatibility of the Maestro function with many online portals. No wonder – because the competition from Apple Pay, Google Pay and PayPal is increasing. The US companies have long been integrated into the websites of large online retailers and some offer buyer protection payments like PayPal. The online payment providers are therefore a safe alternative for fast online payments for many consumers.
In-app payments as a new function for Girokarte
In order to counteract the strong competitive pressure, the giro card should have additional functions. Specifically, it is about paying a deposit when, for example, a hotel room or a rental car is rented. In addition, the banks and savings banks finally want to bring the giro card to the smartphone to enable in-app payments.
Competing products such as Apple Pay and Google Pay offer the possibility to pay for additional content and subscriptions directly in an app with in-app payments. Mass implementation of their payment systems is made easier for Google and Apple because they are linked to the Google account or the Apple ID of the respective smartphone user.
Joint online payment procedure planned
The banks therefore have the problem of integrating their new functions for the giro card into online trading websites and smartphone apps. “We are therefore further developing the Girocard and aligning it even more closely with the needs of customers,” explains Peucker. With regard to the costs for the additional functions of the giro card, the Savings Banks and Banking Association is still keeping a low profile. “Each institute decides for itself on its product and pricing policy,” says Peucker.
The comprehensive use of the payment offer is to be ensured by integrating the giro card into a common online payment process. The technical preparations have already been completed and the offer has already been made available to customers. So far, however, only one retailer is offering the new giro card functions.
With the merger of the online payment process of the savings banks and banks, the gaps that abolished the Maestro function could also close. Only until mid-2023 will it be possible to pay with the card or withdraw money abroad using giro cards with the blue and red Maestro logo. New partners should continue to ensure the giro card and its functions abroad. Until now, only a credit card or debit card could replace the Maestro function. An online function for paying with the giro card could also alleviate the problem of international payments.