Partner banks get out of Paydirekt
Paydirekt, the payment system of the German banks, loses the ING Germany, the Hypovereinsbank, the German Santander and other private banks as partners. The aforementioned companies have canceled their shares as of 31 December 2019. Outwardly, it is said that the institutions had disturbed the complex governance structure of the German Paypal clone. Actually, there is a lack of willingness to participate in the forthcoming funding round. Talks about a cash injection in the three-digit millions are due this year.
What is next for banks?
All in all, the partners who want to turn their backs on Paydirekt hold eleven percent of the shares. It is still unclear what should happen to these. It is conceivable to divide the open shares into Deutsche Bank and Commerzbank. However, the two banks did not want to comment on this.
Paydirekt, one among many?
Paydirekt is an online payment service that was launched in 2015 by a number of German banks and savings banks. For larger merchants Paydirekt is a payment method among many. The service competes directly with, among others, the US company Paypal.
Customers of affected banks should be able to continue to use the service.