Dec 26, 2017 Admin Payment methods
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Giropay is a Germany-based internet payment platform which allows customers make purchases on the internet through direct transfer from their bank account. Giropay is owned by Giropay GmbH and a lot of cooperative banks in Germany are on the Giropay platform. There are not many banks from the private sector on the platforms but Giropay still serves about 17 million online banking customers in Germany. Also, 60 percent of commercial bank customers make use of Giropay which means that Giropay serves the majority of the German online banking market.

Giropay is a great alternative for customers who do not want to use their credit or debit cards online. Giropay provides a high level of safety because every transaction on Giropay is facilitated by the customer’s bank and transaction history can be pulled from the bank at any time.

Basic Principle

The Giropay platform is a real-time payment method of making payments on the internet. There is no difference between the Giropay platform and regular online banking platforms. Giropay works hand in hand with banks and the level of security is highly dependent on the participating bank. Some banks offer two-factor authentication while some others make use of PIN only. Giropay does not share sensitive information with the merchant you are making payment to and there are absolutely no risks of chargebacks.

How Giropay Works?

  1. Giropay is listed a payment option in addition to other payment options on Merchant.
  2. Customer selects Giropay and their bank.
  3. Customer is redirected to their bank’s online banking platform and required to log in.
  4. Customer’s bank displays transaction information.
  5. Customer enters bank account details and pin.
  6. Remittance slip is sent to customer as confirmation of transaction. The remittance slip contains the transaction number which the customer enters to confirm the transaction.
  7. If the customer’s bank offers a two-factor authentication token, the customer signs the transaction digitally with the 2FA token.
  8. Transaction is authorized by customer’s bank and money is deducted directly.
  9. Merchant receives confirmation of transaction.
  10. Transaction is confirmed successful on merchant website.


Pros of Using Giropay

For Merchants

  1. Giropay is a highly trusted online buying platform in Germany.
  2. Giropay accepts more than only credit cards.
  3. It has lower risks of returns or chargebacks.
  4. A lot of customers in Germany are familiar with Giropay, so it is a widely adopted payment option.

For Customers

  1. It is a trusted and safe payment option.
  2. It does not require the use of debit or credit card.
  3. Giropay is secure, convenient, simple and reliable.
  4. Since it is a Germany-based payment option, it is language and currency localized.

The only drawback of using Giropay is that it cannot be used for international payments as it is mainly for transactions within Germany. It however offers a high level of safety and ease of usage as it does not even require customers to sign up. Customers only need to select Giropay as payment option during checkout as long as their bank is a participant on the platform.

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