Deutsche Bank Re-enters payments space in joint venture with Fiserv
Deutsche Bank has signed a deal with the US-based payments provider Fiserv to relaunch its payments business and help its customers accept and send payments in person and digitally as well.
The bank had exited the business around a decade back by selling it to EVO Payments as it had felt that the business was no longer viable and was highly risky as it was used for gambling and financial crime. But as we have been saying many times over the last couple of months, the payments business is back in vogue and it is expected to grow in a very large manner all around the world in the coming months.
The main driver behind this change in the digital payments business is the pandemic that has been raging around the world over the last couple of years. This has made people stay indoors and even those who are not used to making payments digitally have been forced to do so during this period.
The joint venture will help the bank users to accept payments through the Fiserv payments platform called Clover that reads payment cards, debit cards, and mobile wallets as well. This platform has been a huge boost for Fiserv over the years and more so during the last couple of years as the payments industry continues to expand and innovate.
“By combining Fiserv payment solutions with our banking products, we will be able to deliver accounts, payment solutions, and banking services to our SMEs,” says Stefan Hoops, head of corporate Bank at Deutsche Bank. “Today, no other provider of such services in Germany can offer this in-depth combination of acceptance solutions with banking services being a true “one-stop-shop” for our clients. This will translate into a better client experience, lower costs, and reduced complexity for clients.”
The re-entry of the bank into the industry is just another proof of the space that is available in the industry for participants and the potential that many continue to see in the years to come for this space to grow. People have experienced the convenience of digital payments over the last 2 years and most of them continue to prefer it even after the pandemic has receded. This is likely to be a huge boost for the industry and with it being well-regulated around the world, it can only grow as more and more participants enter the industry and continue to build and upgrade their products.