Why has Giropay closed?

Considering Giropay was one of the most popular online banking methods in Germany, with 45 million users, its closure may come as a bit of a surprise. However, this reflects the European Payment Initiative’s aim to create a unified real-time payments system across Europe. The new system, known as ‘Wero’, is currently still in its pilot phase, but it is planned to be rolled out fully in 2025. The idea behind a single European payment system is that it will be more streamlined and cohesive for both individuals and businesses.

Adapting to Change: What Business Need to do Now

After removing Giropay as a payment option, businesses may now be looking for a new alternative option for accepting payments. In order to keep payment operations running smoothly, there is a need to move fast. Ultimately, today’s customers want a variety of ways to pay for their goods and services.

This may sound like a challenge, but it also presents an opportunity to adopt newer, more efficient technologies.

Open Banking: A New Frontier with Yapily

Open banking is at the forefront of modern financial services, enabling third-party providers to access bank data and offer more competitive payment solutions. At Yapily, we think of it as one platform, unlimited possibilities.

As a payment method that has grown substantially in recent years, open banking offers a perfect alternative to Giropay - fast, secure, easy for merchants to integrate and easy for customers to use. By facilitating direct account-to-account payments, checkouts are not abandoned when customers have to go and find their card details.

Higher payment completion rates and faster settlement speeds bring businesses improved cash flow while reducing the complexities associated with traditional payment methods.

Integration and Security with Yapily

The additional benefits of open banking would be lost if they came with a painful integration and unreliable security. That’s why Yapily provides comprehensive API documentation and dedicated support, ensuring businesses can integrate Yapily’s solutions seamlessly. As a tech-first company, Yapily has a strong focus on robust encryption and stringent authentication protocols, critical for keeping transactions secure in the digital age.

Conclusion: Embracing the Future with Yapily

The streamlining of online payments across Europe is undoubtedly a good thing, but Giropay and Sofort have ceased operating before that solution is ready. Businesses and consumers need a replacement payment option, but open banking gives them so much more. For Giropay users, the news of its closure will have understandably caused concern, but the opportunity it has created is reason for excitement.

Get in touch to learn more about how Yapily can power your product innovation. Exploring your options? Check out our Open Banking Buyer’s Guide to understand how to vet providers and choose the best partner.