New secondary payment systems on combo cards are becoming popular as the end of Maestro cards in Europe causes a stir. Maestro cards have long been a secondary function of giro cards in German banks and savings banks, allowing them to be used abroad as a means of payment and at ATMs. The discontinuation of Maestro has raised concerns about the future of the Girocard, with speculation that Visa may also phase out its comparable V Pay system. From Saturday, banks and savings banks will no longer be able to issue cards with the Maestro function. However, valid Girocards with the Maestro logo will continue to work abroad until their expiry date. Andreas Martin from the board of the Federal Association of German Volks- und Raiffeisenbanken (BVR) criticizes the alarm caused by the end of Maestro, stating that it is not a problem for the Girocard or its users. He suggests that national banks and savings banks could set up a new co-badging to replace Maestro with another payment variant, such as Debit Mastercard (DMC) or V Pay.
Replacing one system with another is not as simple as it seems. The Bank-Verlag has developed a “ComboCard” that can be adapted to the Girocard. This new combination card offers the service features of a credit card, making it a more affordable option for customers who do not want to rely solely on the Girocard. While savings banks and cooperative banks have been experimenting with new co-badging solutions, private banks have been slower to adopt them. The Frankfurt Degussa Bank was the first to introduce the ComboCard, focusing on smooth exchange, customer benefits, and loyalty. The demand for the e-commerce function of the ComboCard has been lower than expected, but there have been more cases of fraud. Debit Mastercard has posed some challenges for customers abroad, but these issues have largely been resolved. Customer feedback on the ComboCard has been positive, and there have been no complaints about the reservation limit.
In order to adapt to changing shopping and payment behavior, the credit industry has launched the “Girocard 4.0” initiative. This initiative aims to make payment processes invisible, instant, and simple, as well as adapting the Girocard for mobile payments and easier integration into apps. At the same time, cash should still be supported. The development of new co-badging processes with debit processes from international card organizations is seen as a challenge, as it brings two competitors together on one card. The German banking industry must go its own development path, as the European Payments Initiative (EPI) focuses on account-to-account payments rather than harmonized card payment processes. The Girocard is expected to support digital receipts, open up new market segments, and act as a “melting pot” for in-app purchases.
