German banks aim to terminate use of Paydirekt payment system.
Paydirekt, designed as a competitor to Paypal, has failed to gain significant traction. Recent reports indicate that German banks and savings banks are planning to discontinue Paydirekt by the end of this year.
Citing reliable sources, the "Sueddeutsche Zeitung" states that these financial institutions are currently considering the future of Paydirekt GmbH, the company behind the payment service. Once a decision has been reached at shareholder level, an official statement will be released.
Paydirekt came into existence in 2015 but struggled to gain popularity. In 2021, the project combined with another bank-backed initiative, Giropay. However, even with both methods combining forces, they managed to achieve a market share of less than 1% by the end of 2022. Paypal, on the other hand, processed nearly a third of all online transactions in Germany at that time.
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The German banks' planned shutdown of Paydirekt by the end of this year might affect the payment methods available for consumers. Despite being introduced in 2015, Paydirekt, a rival to Paypal, failed to secure a prominent market position, with a market share of less than 1% by 2022. Even after combining forces with Giropay in 2021, their market share remained insignificant compared to Paypal's nearly one-third share of online transactions in Germany at that time.
