What is Giropay?

Merchant Form

Giropay is an online payment system that is very widespread in Germany. Its founding year was 2005. Yet it was ready for commercial use in 2006. The payment system is available for both merchants and individuals. It works on the basis of the user’s bank. So, it’s possible to exploit Giropay similar to how you use your online banking app.

A variety of banks partner with Giropay. The main partners are the cooperative banks and Sparkasse. Nevertheless, the major commercial banks participate as well. Thanks to this, this payment system covers over 17 million customers.

Giropay provides safe, fast, and easy payments for individual and business users. This criterion is possible because Giropay is, in fact, an extension of customers’ bank app. All information comes from the trusted by the user bank and is verified by PIN or TAN.

What are the benefits of Giropay?

For customers, Giropay uses the same environment as their banks’ online banking sites. The level of security depends on the participating bank. Also, Giropay requires no additional registering. The system is fully compatible with PCs, tablets, and smartphones. Moreover, the payment goes just in a few clicks. All sensitive and personal accounts and sales data remain safe. Also, Giropay answers the highest security and data protection standards.

The top security level is possible thanks to using the safe bank or Sparkasse without extra need to expose personal data. The overall payment procedure takes a few taps only. That makes Giropay highly preferable by users.

How the user creates Giropay account

To make the payment, the customer chooses the bank/Sparkasse to connect to Giropay. Then s/he needs to log in to access banking account data. To approve the payment customer uses TAN to make a pre-filled Giropay transfer.

How Giropay works

Merchant offers Giropay as a payment method, often in addition to the regular credit card payment options.

  1. The user selects Giropay and chooses their bank.
  2. The customer is redirected to their bank’s login page.
  3. The participating bank displays transaction data.
  4. The consumer enters the account number or PIN.
  5. Bank authorizes transaction in real-time, deducting the amount directly from the consumer’s account (if there is not enough balance, the transaction will be refused).
  6. Merchant received real-time confirmation of the payment by the bank.
  7. The customer is redirected back to the merchant page with a confirmation that the payment has been successful.

All-in-all, Giropay is a payment method you need to consider if you target Germany. Plenty of German citizens use this option to pay online. Claim Giropay to increase customer retention in the region and develop the user experience.

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