Payment transactions

Bumpy Year for Paydirekt

  • Why it matters

    Why it matters

    Paydirekt faces a tough battle against industry heavyweights like PayPal but the service has the support of German banks and a growing number of retailers in the country.

  • Facts

    Facts

    • Paydirekt has about 800,000 registered users, compared to 16 million for PayPal.
    • The service has signed up about 400 retailers.
    • Some 20 percent of online sales are made through PayPal.
  • Audio

    Audio

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Verkaufsoffener Sonntag in Berlin
Germans are expected to splurge on Christmas gifts this year and Paydirekt hopes to win a part of their transactions. Robert Schlesinger/DPA

Payment procedures depend on a broad user base. Paydirekt, the online payment service of a group of prominent German savings, private and cooperative banks, is no exception. And that’s why the service provider is urging employees of all member banks to sign up.

If employees don’t use the service, “why should our customers?” said Frank Schwab, the head of the GIZS savings bank subsidiary that provides innovative payment methods to savings banks and is also directly responsible for Paydirekt.

Paydirekt urgently needs more users. With about 800,000 registered private customers, the joint venture lags far behind the market leader, PayPal. The U.S. payment service, which has been active in Germany for several years, has more than 16 million active users.

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