When paying without notes and coins, people in Germany are increasingly turning to the Girocard. Banks and savings banks want to make the payment card even more attractive with additional applications.
The upward trend in cashless payment with the Girocard continues – and banks and savings banks promise further possible uses.
According to figures from the German banking industry, consumers in Germany made around 3.65 billion purchases with the Girocard in the first half of this year. That was 15 percent more than in the first six months of 2022, as announced by the Frankfurt facility Euro Kartensysteme.
“The German banks and savings banks want to use the tailwind of the high level of acceptance to accelerate the development of new solutions for everything to do with the Girocard,” said Euro Kartensysteme. “The long-term goal is that it should be possible to pay with the Girocard in every conceivable situation in Germany.”
Contactless payment increasingly popular
For example, a digital receipt is being worked on together with trading partners. The focus of many developments is the digital Girocard in smartphones or smartwatches, explained Euro Kartensysteme: “For example, it should be expanded to include the option of making payments in apps.”
When paying with the digital Girocard via smartphone or smartwatch, it is also possible to check directly whether the customer is of legal age when buying cigarettes, for example. A pilot project has been running since the end of June.
Above all, contactless payment by card, smartphone or smartwatch is becoming increasingly popular: In four out of five cases (80.9 percent) in the period from January up to and including June 2023, payment was made using this method using the Girocard. At the end of June 2022, this value was still 74.3 percent; by the end of 2022 it was already 79 percent.
Sometimes it is not necessary to enter the secret number
Contactless payment is possible with Girocards and credit cards that have a so-called NFC chip. In addition, money can be transferred contactlessly with a smartphone or smartwatch with services such as Apple Pay and Google Pay or with banking apps.
The data for processing the payment is exchanged in encrypted form with the terminal at the checkout when customers hold their card, smartphone or smartwatch close to the device. For small amounts, it is not even necessary to enter the secret number (PIN). During the corona pandemic, retailers advertised contactless payment as particularly hygienic.
Pay in passing
The majority of the approximately 100 million Girocards that banks and savings banks in Germany have issued to their customers are equipped with the contactless function. According to Euro Kartensysteme, more than 96 percent of the almost 1.1 million terminals in retail now allow quick payment in passing.
Because small amounts are often paid without cash in this way, the average amount paid with the Girocard is falling. According to the information, it amounted to 40.73 euros across all payment transactions in the first half of the current year. A year earlier it was 42.36 euros, and at the end of 2022 it was 42.34 euros.
According to Euro Kartensysteme, total sales with the Girocard in the first half of 2023 were EUR 149 billion, around eleven percent higher than in the same period last year (EUR 134 billion). In 2022 as a whole, it was a good 284 billion euros.
Source: Stern
