The payment service Paydirekt merges with Giropay. Since the former brand has remained essentially unsuccessful, it is left behind
Es is a bang in the German banking industry: Paydirekt, which should be pushed into the market with all its might by the financial institutions as a competitor of the payment service Paypal, will disappear from the market. This was announced in an internal newsletter of the savings banks, from which the industry portal Finanz-Szene quoted: “We are preparing for the” implementation of the market launch of our future brand for digital payments “, it said awkwardly.
That this would happen had been a foregone conclusion for some time. For some time now, the German banks and savings banks have been talking about merging the various payment offers for customers under the project name “digital credit industry”. In short, the whole thing is as trendy as you want to be; with a hashtag: #DK. In addition to the merger of Giropay and Paydirekt, it is also about the merger with Kwitt, which enables faster sending of money. The Girocard should also be integrated if possible. The specific project for this is called X-Pay.
The details were unclear for a long time, now it is clear: Paydirekt swallows Giropay, the name Paydirekt will disappear. The purchase price should be in the low double-digit million range. The two procedures work differently: While you first have to register with Paydirekt, you can register with Giropay as you would with online banking. That was the great advantage of the payment system, which was also part of its success. It will be exciting to see what the technical details look like here later: Is there some immature compromise, as was the case in the past, or is there actually a technical advance?
In the case of Paydirekt, it has long been sick on several fronts. For one thing, the service came way too late. It was too expensive for the merchants, so that despite 1500 connected payment points, there was never really a relevant number of transactions. The shareholder structure was far too complex for quick and easy decisions to be made, as is often necessary in the digital world. In addition, their own goals were set so high that Paydirekt had to fail because of their own demands. Giropay, on the other hand, led a niche existence, but at least worked there noiselessly and reliably.
The merger to #DK, which has now started with the merger of Paydirekt and Giropay, is only a first step. If Kwitt is also integrated, a counterbalance to providers such as PayPal could actually be created, at least at the functional level. After capitulating to Apple and Google, the German banking industry evidently said goodbye to its own mobile payment services. Regardless of this, #DK could then be incorporated into the “European Payment Initiative”, which is intended to counterbalance Mastercard and Apple.