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As a PSP itself, MultiSafepay is well versed in the potential of bank transfer solutions in different markets. In 2017, 60% of e-commerce sales in the Netherlands were completed through iDEAL – the country’s predominant bank transfer solution – while just 16% of payments were completed with a credit or debit card. Deutsche Bank’s RtP solution promises to be rolled out in a similar model right across Europe - and markets, where debit cards cannot be used, or are rarely used, for online payments, will be ripe for disruption.
Germany is one such market, where Girocard, the nation’s domestic debit card, is not yet e-commerce enabled. Imagine a customer is looking to buy their groceries from an online supermarket in Germany. With Girocard not enabled, the German shopper might choose a third-party bank transfer provider, such as Giropay or SOFORT payment. The user enters their bank details, a second-step authentication code and the money is then taken directly from the user’s bank account. On the face of it, this process may seem no different from RtP. Behind the scenes, however, the payment takes 2-3 days to process, which can create cash-flow issues for the merchant. As Olaf explains “since bank transfers are the de facto method for online payments in Germany, there is a gap in the market for a solution like Request to Pay, which operates in a similar way, but with heaps of added benefits.”
There is also scope for the solution to gain traction in markets where debit cards are regularly used for online transactions, with online sellers likely to favour this payment method over card payments that have longer settlement periods and incur higher fees. Adoption among consumers, however, may rely on these businesses providing incentives to make the switch.