Giropay

Giropay is an online payment system that is very common in Germany. It was founded in 2005. But it was ready for commercial use in 2006. The payment system can be used by merchants and individuals. It is based on the user's bank. Therefore, you can use Giropay just like an online banking application.

Several banks cooperate with Giropay. The main partners are Co-op Bank and Sparkasse. However, major commercial banks are also involved. Thanks to this, the payment system covers more than 17 million customers.

Giropay provides secure, fast and convenient payment services for individual and corporate users. This standard is possible because Giropay is actually an extension of the customer's bank application. All information comes from the trust of the user's bank and is verified by PIN or TAN.

What are the benefits of Giropay?

For customers, Giropay uses the same environment as their bank's online banking website. The security level depends on the participating banks. In addition, Giropay does not require additional registration. The system is fully compatible with PCs, tablets and smartphones. In addition, payments can be made with just a few clicks. All sensitive and personal account and sales data remain secure. In addition, Giropay meets the highest security and data protection standards.

Since no additional personal data is exposed using a secure bank or Sparkasse, the highest level of security is achieved. The entire payment process can be completed in just a few clicks. This makes Giropay popular with users.

How users create a Giropay account

To make a payment, the customer needs to select a bank/Sparkasse to connect to Giropay. He/she then needs to log in to access the bank account data. To approve the payment, the customer needs a pre-filled Giropay transfer with TAN.

How Giropay works

Merchants offer Giropay as a payment method, usually as a supplement to regular credit card payment options.

1. The user selects Giropay and chooses their bank.
2. The customer is redirected to the login page of their bank.
3. The participating bank displays the transaction data.
4. The consumer enters the account number or PIN.
5. The bank authorizes the transaction in real time and deducts the amount directly from the consumer's account (if the balance is insufficient, the transaction will be rejected).
6. The merchant receives payment confirmation from the bank in real time.
7. The customer is redirected back to the merchant page with confirmation that the payment was successful.

All in all, if your target is Germany, Giropay is a payment method you need to consider. Many German citizens use this option for online payments. Claiming Giropay can increase customer retention and improve user experience in the region.