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Savings Banks in Germany Announce 2018 Rollout of new Mobile Payment Service

by on October 7, 2017
 

Most consumers have gotten rather accustomed to the concept of mobile banking applications. That situation is slightly different in Germany, for some reason. Local savings banks are only now rolling out mobile payment services. They certainly are late to the party. This rollout is expected to commence  at some point in 2018.

Mobile payments are the future of finance, that much is rather evident. Both developed and developing nations have shown a keen interest in this concept. While these solutions are not equally popular everywhere at the same time, things have evolved by quite a margin. Germany is a bit behind the global curve in this regard. More specifically local savings banks will only now commence their rollout of mobile payment services. A rather surprising turn of events, to say the least.

More Payment Solutions are Coming to Germany

More specifically, this new mobile solution is built by S-Payment. It is a subsidiary of the Deutscher Sparkassen Verlag group. Ten MasterCard-issuing savings banks are currently trialing this new product. It is a big step in the right direction, although one that is surprisingly late. One would expect Germany to be one of the top countries when it comes to mobile solutions. However, that is not the case whatsoever.

Once the nationwide commercial phase commences a lot of existing payment solutions will be supported. Consumers can use girocard mobile as well as other financial schemes. It is good to see this hybrid combination of existing and new payment solutions Whether or not there is a real demand for this new product, remains to be seen, though. Moreover, there is no guarantee retailers will embrace this solution.

Under the hood, this solution will secure transactions through tokenization. More specifically, the mobile product uses the MasterCard Digital Enablement Service. This service is provided by G+D Mobile Security. Nationwide projects like these can go a very long way toward shaping the future of commerce in Germany.

Header image courtesy of Shutterstock

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