Only around 50 savings banks can currently offer their customers the new digital payment card.
(Photo: dpa)
Frankfurt The German savings banks give their Girocard an additional function: the digital “Sparkassen-Card”, which is stored in the “Mobile Pay” and “Apple Pay” apps, will be expanded in future to include the “Debit Mastercard” payment method. This was announced by the German Savings Banks and Giro Association (DSGV) on Tuesday.
The managing director of the DSGV, Joachim Schmalzl, explains: “The Debit Mastercard payment method expands the range by millions of acceptance points in shops worldwide, in online shops and apps.”
The DSGV also rates this step as a “clear commitment to the popular Girocard payment method”. Other payment transaction experts see it the same way. Because the payment card, which is very popular and widespread in Germany, is actually under pressure.
The reason: the Girocard lacks some functionalities of other cards, such as the possibility to pay with it on the Internet. Some banks and direct banks are therefore increasingly replacing the Girocard with debit cards from Visa or Mastercard.
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At the moment, all banks have to consider which card strategy they want to use in the future: Up to now, Girocards could be used internationally because they were equipped with the Maestro debit payment method from Mastercard. But Mastercard wants to take the Maestro system off the market in most European countries from the second half of 2023. That would further restrict the possible uses of the Girocard.
No advantage for all Sparkasse customers
Virtual cards that offer two payment methods are rare internationally. According to S-Payment, the Sparkassen-Finanzgruppe’s payment competence center, there are only examples in France, Australia, New Zealand and Brazil. It is also not certain that the example of the savings banks will be followed by many imitators, because every payment system used increases the costs for the banks.
However, not every savings bank customer will benefit from the new options: Only those savings bank customers who already have a physical savings bank card with the Girocard and Debit Mastercard payment methods are activated.
According to S-Payment, around 50 of the more than 370 savings banks nationwide use the Girocard with the so-called co-badge debit Mastercard – the product has been around since October 2020. Whether a savings bank uses cards with these two payment methods is up to them own decision.
According to the association, customers who have physical cards with the double payment system will automatically receive the improved digital Sparkasse card in the next few weeks. You can then use them in the Mobile Payments or Apple Pay apps.
At the end of this year, the savings banks want to introduce the combination of Girocard and “Visa Debit” in addition to the Mastercard co-badge. In the first quarter of 2023, the Visa debit payment function will also be made available digitally.
More: German banks are fighting for the future of the Girocard