Beginning January 1, 2025, customers of the Sparkasse Bank will see significant changes to their payment services as the bank discontinues its popular offerings, giropay and Kwitt. While customers can continue to use giropay for online transactions until the end of this year, the service will officially shut down on December 31, 2024. Fortunately, users will still be able to send money using giropay for the time being, as the functionality remains available.
Alongside giropay, the mobile payment service Kwitt will also be phased out. This app has enabled users to transfer smaller sums of money quickly and easily via their smartphones and has been particularly popular among users. By the time the calendar turns to 2025, Kwitt will no longer exist, compelling Sparkasse customers to adjust their payment habits accordingly.
To address this gap, the bank is introducing Wero, a new payment service initially launching across Germany, Belgium, and France. This app aims to not only replace Kwitt but also to expand upon its functionalities. Customers will be able to send money securely without needing to use traditional IBANs; instead, all they will require is the recipient's phone number or email. "Wero provides the ability to send money swiftly and securely, even on weekends," Sparkasse highlighted on its website.
The introduction of Wero signals Sparkasse's ambition to create a truly European payment platform. This initiative mirrors existing services such as PayPal but is rooted firmly within the European banking framework. With Wero, Sparkasse hopes to empower users with greater financial independence from American payment systems.
Historically, giropay has served as Germany's alternative to PayPal since its introduction. Launched initially to facilitate online banking transactions, giropay merged with Kwitt's service five years later to broaden its appeal. Despite these combined efforts, giropay struggled to capture significant market share against international competitors.
According to Sparkasse, this shift follows decisions made at the company assembly of paydirekt GmbH, the parent company overseeing the payment services. During the assembly, it was decided to discontinue both services following their underperformance. The bank's move is part of broader changes occurring across the European banking sector as institutions strive to provide customers with more appealing and secure transaction options.
Sparkasse’s decision points to the urgent need for banks to innovate continuously, ensuring their services remain relevant and user-friendly. Looking forward, Wero aims to accommodate even more features to fortify its competitiveness against established players like PayPal and Apple Pay.
Sparkasse is not alone in this transition. Numerous other banks, such as Deutsche Bank, Volksbank, Sparda-Bank, Postbank, and PSD-Bank, have already adopted Wero as their new payment function. By consolidations such as these, the pathway to creating comprehensive digital wallet solutions is becoming clearer.
All customers using giropay should have received notifications about the service's discontinuation, and Sparkasse assures users they need not take any additional action at this moment. Access to their accounts will remain available until January 31, 2025, allowing them to prepare for the changes.
With both giropay and Kwitt heading for retirement, millions of Sparkasse customers must now adapt to these new systems and explore the potential benefits of Wero. While changes are always challenging, this transition opens doors to innovations aimed at enhancing customer experience and security.
