OTTO is the second biggest online retail destination in Germany and claims to be the biggest online retailer there for fashion and lifestyle products.
Otto introduce instant bank transfer payments
Online retailer and marketplace, Otto have introduced a first for German retailers and consumers – Otto instant bank transfer payments enable customers to transfer payments instantly for their purchases. You can read more about the selling opportunity on Otto here.
This is key for the Germany where there is a love of bank transfer and payment on invoice. It’s easy to forget here in the UK that we’ve had instant payments for several years and where spending on credit or debit card is the defacto norm. In Germany, the ability for a customer to pay via their preferred payment method – bank transfer – and for the merchant to receive the funds instantly without a delay in fulfilling the order is a key step forward.
The German fintech industry, and indeed the whole of the EU, are working towards making instant payments a reality. The European Central Bank (ECB) has launched an instant Euro payment system, TARGET Instant Payment Settlement (TIPS), a new component of the Eurosystem’s TARGET Services and aims to enable banks to offer fund transfers in real time and around the clock, 365 days a year.
Otto didn’t want to wait for a solution and in the mean time partnered with the German Hanseatic Bank to develop an API and introduce instant bank transfer payments today.
“Some banks are currently charging their customers a fee for using Instant Payments. We hope that this is a rethinking and the real-time transfer soon everywhere at no extra cost for private customers”
– Boris Jendruschewitz of Otto Group
For online merchants selling via marketplaces, it will be down to the marketplaces to adopt new payment solutions and instant bank transfers is certainly something we’d expect eBay Payments to roll out with Adyen across the EU. What this development with Otto does mean is when selling via your website consumers, at least in Germany, will start to consider bank transfer without any delay in the order completion and fulfilment process.