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Mobile payment with a digital credit card and girocard at German Volksbanken Raiffeisenbanken

31/01/2018 Munich/Wiesbaden (Germany) Giesecke+Devrient

Munich/Wiesbaden (Germany), January 31, 2018 – In December 2017, the Cooperative Financial Network Volksbanken Raiffeisenbanken in Germany started a “Family&Friends” pilot project for mobile payment via smartphones, using a digitized credit card or girocard (girocard being the most widely used payment card in Germany). This new mobile payment solution has been very well accepted, not only by the 200 employees of the two pilot banks, i.e. Volksbank Mittelhessen and VR-Bank HessenLand, but also by commerce and retailers.

A secure and user-friendly solution
DG VERLAG worked closely with G+D Mobile Security to provide digitized payment cards with the highest level of security and protection to the German cooperative banks. The solution is based on Host Card Emulation (HCE) technology which is state-of-the-art for mobile payment and will allow the bank to integrate future requirements. Part of the bank customer’s payment card data will remain inside the secure digital
HCE card production system, while another part of these data is transferred to the customer’s smartphone. As soon as the bank customer orders the digitized version of his or her payment card and activates it via the VR-Banking App on the phone, the smartphone can be used for payment transactions by holding it close to a Point-of-Sale payment terminal in a shop. The mobile payment solution supports both Visa and Mastercard payment schemes as well as the Cooperative Financial Network’s background systems. It has been approved by the credit card organizations as being compliant to their high security and quality standards.

Close co-operation as a success factor
The Convego® CloudPay service by G+D Mobile Security is being used in numerous mobile payment solutions worldwide. This internationally successful solution has been customized according to the Cooperative Financial Network’s specific requirements and is being run by G+D Mobile Security as a Managed Service on behalf of DG VERLAG. DG VERLAG, with its long-term experience in providing and managing physical payment cards, provides this new service for digital cards to the member banks of Cooperative Financial Network Volksbanken Raiffeisenbanken.

“We are pleased to offer a user-friendly and secure new way of payment to the customers of Volksbanken and Raiffeisenbanken, with G+D Mobile Security as our partner. Together, we have been working on several other successful solutions in the context of our digital strategy, which has been a very valuable experience.” says DG VERLAG Member of the Board, Franz-J. Köllner.

“Working with DG VERLAG to advance the digitization of retail banking in Germany is a wonderful opportunity for G+D Mobile Security” states Rainer Basler, Head of Customer Relationship Europe for G+D Mobile Security Financial Services. “Bank customers have an increased demand for mobile services that complement the established channels in retail banking. G+D supports DG VERLAG in addressing this demand by providing technologically advanced solution modules that will enable bank customers to experience new, simple and convenient ways of payment.”

Commercial launch
The commercial launch of the new mobile payment service is scheduled for the summer of 2018, making it available to customers of about 85 percent of Volksbanken and Raiffeisenbanken. Other launch partners for the digital credit card and girocard, in addition to DG VERLAG, G+D Mobile Security and the bank branches of the pilot phase, include the National Association of German Cooperative Banks (BVR), DZ BANK, Fiducia & GAD IT and CardProcess.

The Deutscher Genossenschafts-Verlag eG (DG VERLAG), Wiesbaden, is the competence center for solutions, services and products of the Cooperative Financial Network Volksbanken Raiffeisenbanken, the
goods and service cooperatives as well as the cooperative institutions in Germany. With its offerings, DG VERLAG supports the market success as well as the efficiency of its members and customers. As the card
competence center of the Cooperative Financial Network, it provides the Volksbanken and Raiffeisenbanken with the products of the cooperative card family as well as devices to secure online banking. www.dgverlag.de

DG Verlag press contact:
Christoph Korn, phone +49 6 11 50 66-21 45, Email: presse@dgverlag.de

About G+D Mobile Security
G+D Mobile Security is a global mobile security technology company headquartered in Munich, Germany. The company is part of the Giesecke+Devrient group. G+D Mobile Security has a workforce of 5,800 employees and generated sales of approximately EUR 860 m in the 2016 fiscal year. More than 50 sales and partner offices as well as 20+ certified production and personalization sites and data centers ensure customer proximity worldwide.

G+D Mobile Security manages and secures billions of digital identities throughout their entire life cycle. Our products and solutions are used by commercial banks, mobile network operators, car and mobile device manufacturers, business enterprises, transit authorities and health insurances and their customers every day to secure payment, communication and device-to-device interaction. G+D Mobile Security is a technology leader its markets and holds a strong competitive position.

VR banking app on a smartphone, with a credit card reader in the background
Someone holds a smartphone running the VR Banking app in front of a credit card reader

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Christoph Lang

Head of Corporate Brand Communications and Government Relations Spokesman

Phone: +49 89 4119-2164
E-Mail: christoph.lang@gi-de.com