What’s happening with Giropay?
If you’ve been using Trust Payments for processing transactions, you might have noticed that Giropay is no longer available as a payment option. With Giropay closing, as a merchant, you need to take action if you haven’t already. This change might be unexpected, and we’re here to help you understand what’s going on and what steps you need to take to adjust.
The reason behind Giropay’s closing
On June 24, 2024, Paydirekt, the owner of Giropay, announced their decision to discontinue Giropay. Trust Payments was informed that after June 30, 2024, Giropay would stop onboarding new merchants and processing payments. This decision was made by Paydirekt, and unfortunately, Trust Payments has no control over it.
Giropay struggled to compete and establish itself as a rival of PayPal in Germany. Launched in 2015, Giropay merged with Paydirekt as a unified mobile and online payment system. This initiative was backed by major German banks, including Commerzbank, Comdirect and Deutsche Bank.
How will Giropay closing impact on your business
From July 1, 2024, onwards, Giropay will no longer function as a payment method. Retaining Giropay in your checkout process after this date will result in errors, disrupting your customers’ experience.
Steps to Take Before June 30, 2024
To ensure a smooth transition, follow these steps based on your current integration type:
Hosted checkout
Trust Payments will automatically remove Giropay as a payment option by June 30, 2024. No action is needed from you.
Plug-in integration
Go to your integration settings and disable Giropay before June 30, 2024, to avoid any errors.
Custom API integration
Manually remove Giropay from your payment options in your checkout system before the deadline. Failing to do so will result in errors after June 30, 2024.
Additionally, update your website and support materials to remove any references to Giropay as an accepted payment method.
How this will affect Giropay refunds
Before June 30, 2024
Refunds will be processed as usual. The refund process remains unchanged. This means that if you need to issue a refund to a customer who used Giropay, you can do so through your existing payment processing setup without any additional steps. Customers will receive their refunds directly to their bank accounts as they normally would, ensuring a smooth and familiar process for both merchants and customers.
After June 30, 2024
Refunds will fail to complete. You will need to contact the customer to arrange the refund using an alternative method of payment. This might include issuing refunds via bank transfer, credit card, or another payment service such as Trust Payments. It’s important to update your refund policies and ensure that your customer service team is prepared to handle these changes efficiently.
What alternative payment method can I offer to my customers?
We recommend switching to Trustly, another bank transfer-based payment method that offers reliable service for your customers.
By adopting Trustly as an alternative payment method, you can maintain the efficiency and reliability of your payment processing, minimising disruptions and ensuring continued customer satisfaction in the wake of Giropay’s closing.
Adapting to change after Giropay shutdown
While the discontinuation of Giropay might seem sudden, by following these steps, you can ensure that your payment processing continues without a hitch . Trust Payments is dedicated to helping you through this transition smoothly. If you have any questions or need further assistance, our support team is always here to help. Your business success remains our top priority.
FAQs about Giropay
Giropay was an online payment method popular in Germany, allowing customers to make secure payments directly from their bank accounts.
Giropay was similar to other online banking payment methods like iDEAL in the Netherlands or EPS in Austria. These payment methods allow customers to make secure online payments directly from their bank accounts, bypassing the need for credit cards or other third-party payment systems.
Giropay was used by 45 million customers, nearly 54% of Germany's population. The closure will impact these users, requiring them to switch to other payment options for their transactions.
The closure of Giropay impacts businesses across various sectors that have integrated Giropay as a payment processing solution. Any merchant relying on Giropay for processing transactions will need to adjust their payment methods before June 30, 2024, when Giropay ceases operations. This includes e-commerce platforms, service providers, and retailers who cater to customers using bank transfer-based payments in Germany and other supported regions. Ensuring a seamless transition to alternative payment methods like Trust Payments is crucial to avoid disruptions in payment processing and maintain customer satisfaction.
