Volksbanken Launch Independent iPhone Contactless Payment Solution Amid EU Requirements

The network of Volksbanken and Raiffeisenbanken has introduced a new contactless payment feature for iPhone users, enabling transactions using the widely adopted German Girocard through the VR-Banking-App. This move follows recent European Union regulations mandating Apple to provide third-party access to the iPhone's NFC interface, previously restricted to Apple Pay.

Initially, six banks within the cooperative group have begun offering the feature to their customers, including Volksbanken Mittelhessen, Mittelfranken, Berlin, Stuttgart, Raiffeisen-Volksbank Aurich, and VR-Bank Memmingen. The rollout is set to expand to additional member banks in the coming weeks.

Customers can activate the digital Girocard by accessing the 'Cards' section within the VR-Banking-App, where they may either transfer the security number from their physical card or request a new PIN. Payments are made by double-pressing the iPhone side button and holding the device near a compatible payment terminal. This digital solution operates independently of Apple Pay, providing an alternative for users seeking to utilize their Girocard directly through their iPhone.

Beyond contactless payments, the digital Girocard supports cash withdrawals at ATMs and the retrieval of account statements at self-service terminals. The app also issues push notifications for each debit transaction, enhancing transaction transparency for users. However, this functionality is currently limited to iPhones and does not extend to the Apple Watch, as Apple restricts third-party NFC access on its smartwatch platform.

The technical foundation for the service was developed by Atruvia AG, the IT provider for the cooperative banking sector. The app employs encrypted data transmission and has undergone certification by TÜV, underscoring a commitment to data security. Unlike Apple Pay, users must manually activate the VR-Banking-App for payments, as it does not automatically serve as the default wallet on the device.

The new payment option became feasible following the enforcement of the Digital Markets Act (DMA) by the European Union. In response to findings of anti-competitive behavior, Apple was required to open its NFC interface to third-party providers from 2025 onward. This regulatory change has led to the emergence of alternative payment services for iPhone users, including PayPal and Curve Pay, which have launched their own contactless solutions earlier this year. However, the Volksbanken approach is distinct in its exclusive focus on the German Girocard, a debit system that is prevalent throughout Germany, in contrast to PayPal's reliance on virtual Mastercards or Curve's multi-card management.

The functionality provided by the VR-Banking-App has been available to Android users for several years, highlighting a shift towards platform parity in digital banking services. While there is no confirmation regarding the future addition of credit card support within the app, the current focus remains on optimizing Girocard capabilities. In parallel, the Volksbanken group is working on enhancing Wero, a European payment system expected to support in-store payments from 2026 onwards.

This initiative marks a significant step in the evolution of mobile banking in Germany, offering consumers increased flexibility and choice in digital payments while addressing regulatory requirements for fair competition in the financial technology sector.