Contactless Girocard Payments Gaining Popularity
In a nutshell, paying with contactless Girocards is now the norm in Germany. The German banking industry's joint venture, Euro Kartensystem GmbH, revealed on Wednesday that over three-quarters of all Girocard transactions were made contactlessly in the first half of the year. This method of payment, which became increasingly popular during the COVID-19 pandemic due to hygiene considerations, saw an impressive ten percentage point increase compared to the previous year.
The Girocard's use has grown significantly, with around 3.17 billion payment transactions in the first half of 2022, reflecting a 17.1% increase compared to the year before. The total turnover reached approximately 134 billion euros, a 17.9% increase. The number of electronic cash registers in retail where Girocards can be used surpassed one million for the first time, marking an 11% increase compared to the first half of 2021.
Although Girocard's dominance in e-commerce is less pronounced than in physical retail, its role extends to age verification in automated digital transactions, like vending machines. In addition, the rise of innovations like SoftPOS (contactless payments via mobile devices) indicates the growing acceptance of contactless payments among merchants, although these advancements are not exclusive to Girocard.
Despite increasing competition from international card schemes like Visa/Mastercard, Girocard maintains relevance through its extensive contactless adoption. The scheme's strong security reputation, high penetration in offline transactions, and NFC-enabled terminals make it a popular choice among consumers seeking speed and security. In contrast, digital wallets and Pay by Bank services are gaining traction, but Girocard's contactless usage remains significant in sectors prioritizing NFC-based security and speed.
- The surge in contactless Girocard transactions, which accounted for over three-quarters of all Girocard payments in the first half of the year, reflects the growing acceptance of finance technology and contactless payments among merchants.
- The German banking industry's joint venture, Euro Kartensystem GmbH, reported an impressive ten percentage point increase in contactless Girocard transactions compared to the previous year, showing its significance in finance and its role in everyday transactions.
- In addition to its dominance in physical retail, the Girocard is also used for age verification in automated digital transactions like vending machines, demonstrating its versatility and wide-ranging influence in finance.
- High penetration in offline transactions, strong security reputation, and NFC-enabled terminals make the Girocard a popular choice among consumers who prioritize speed and security in their finance-related activities, despite increasing competition from international card schemes like Visa/Mastercard.
