OTTO, the German online platform has introduced instant bank transfers to its retailers and consumers. It enables customers to transfer payments instantly for their purchases. Using this payment method, the user fills out a mask with the recipient, IBAN, amount and purpose and releases the order. The key difference: the money now reaches the recipient within seconds. "Instant Payment is not primarily a new payment system, but corrects the outdated processing of bank transfers in the digital age," said Anke Brummack, Payments analyst at OTTO.
The German FinTech industry, along with the whole of the EU, is working towards making instant payments a reality. OTTO did not want to wait for a solution and in the meantime partnered with the German Hanseatic Bank to develop an API and introduce instant bank transfer payments today. 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 expected across the EU.
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