Strategy & Digital Transformation Consulting Partner | Board Advisor | Cards, Payments & Open Banking | MBA, INSEAD AMP'19Jul, CGM'20 and IDP-C'24Mar
“German banks are set to shut down their PayPal competitor, Giropay/Paydirekt, and instead align themselves with the European Payments Initiative (#EPI). This move marks a significant shift in the digital payments landscape across Europe. … The decision to abandon both #Paydirekt and #Giropay comes ahead of a crucial shareholder meeting this week. A spokesman confirmed to local paper Finanz-szene that “there are currently coordinations at shareholder level on the future of Giropay and Paydirekt GmbH as an operating company. .. This move is timed just before the launch of #Wero, the payment wallet of the bank-backed European Payments Initiative (EPI). Paydirekt has been around for almost a decade since it was initially launched in 2015. As it expanded over the years, it also merged the Giropay online payment system, building up a service that grew to be one of the largest competitors to PayPal in Germany today. It operates as a joint mobile and online payments initiative of Germany’s largest banks, including Deutsche Bank, Commerzbank AG, comdirect – eine Marke der Commerzbank AG, Sparkassen Finance Group, and Postbank Unternehmensbank. However, with the rise of EPI, the banks have decided to abandon both Giropay and Paydirekt and throw their weight behind the new solution instead. The decision was made during the shareholder meeting, and their spokesperson confirmed it. EPI launched with the goal of building a unified pan-European payment system — something that would transcend the banks themselves. It was initially baked by 31 major Eurozone banks, as well as acquirers Worldline and NETS [Nexi Group]. Since its inception, it also created a digital wallet that would support #accounttoaccount based instant #P2P and consumer-to-business payments. This was followed by the launch of online and mobile shopping payments, and lastly, the PoS terminals. While most major banks in the Eurozone support the startup, a few of them actually decided to distance themselves from it, including Commerzbank and DZ BANK AG. However, Deutsche Bank decided to remain a shareholder. The project’s launch plans include the upcoming deployment in several more countries, including Germany itself, but also Belgium, the Netherlands, and France.” For those close to the German market, the development was long expected but for the industry at large this is a major pivot and something that be create the precedent for other similar moves in Europe, and possibly beyond Europe. In payments, scale and shared platforms matter... #mobilepayments #digital #digitalbanking https://lnkd.in/dsYxf44N https://lnkd.in/dTbFjahQ
Eugene Krasicki
1mo
An interesting post! I would like to clarify what are the potential consequences for consumers as a result of the transition of German banks to EPI?
Rakyou J.
1mo
FYI, somewhat similar with the case of Germany and EU, unifying digital payment infrastructure is also a trend in ASEAN, led by MAS in Singapore. Central banks among ASEAN directly connect their payment railways so that banks can settle and clear with their own currency during cross-border payment :) Thanks for the summary!
That was a big missed opportunity - It also includes several hundred million euros in sunk costs.
Interesting!
Very interesting indeed, Francesco Burelli
Interesting development in the Payment sector :-)
Dani Stoll💎
3w
Interesting shift, Francesco! How will this affect consumers?
Payment Consultant | I partner with businesses to develop & optimize their payment strategies | Fintech | Retail
1moInteresting, While Giropay and its managing entity PayDirekt has never truly challenged Paypal, its moderate success during almost 10y suggests a need for a stronger solution. EPI could be that new euro champion in the long run. for now I'm not sure that shutting it down would be the smartest move (I don't know what would be the smartest move 😜 )