Apple Pay Alternative: Volksbanken Launch NFC Payments on iPhone

The Volksbanken and Raiffeisenbanken have begun introducing contactless payments via Girocard on the iPhone. This is reported by the US financial news agency Bloomberg. The digital Girocard in the VR-Banking App uses the NFC interface and works independently of Apple Pay. According to user reports online, six institutions are initially participating in the trial: Volksbanken Mittelhessen and Mittelfranken, Berliner Volksbank, Stuttgarter Volksbank, Raiffeisen-Volksbank Aurich, and VR-Bank Memmingen. More banks in the network are expected to follow by January 15th.

The function was actually supposed to be available in September. The National Association of Volksbanken and Raiffeisenbanken (BVR) explained the delay in August on LinkedIn: Development was “well advanced, but not yet complete.” The background is technical issues in setting up the digital Girocard, which could not yet be fully resolved.

To set it up, customers open the “Cards” menu in the VR-Banking App and order the digital Girocard. They can either use the security number of their physical card or request a separate PIN. After a double-press on the side button, the app can be used at the payment terminal.

More Than Just Payments Possible

The digital Girocard not only enables contactless payments at all Girocard terminals. Users can also withdraw cash at ATMs and retrieve account statements at self-service terminals. The app also sends push notifications for debit card transactions. Support for the Apple Watch is not planned; the smartwatch's NFC function remains exclusive to Apple Pay.

The solution was developed by Atruvia AG, the IT service provider for cooperative banks. The app is TÜV-certified and uses encrypted data transmission. Unlike Apple Pay, users must manually activate the VR-Banking app, as it is not automatically set as the default wallet.

EU Forced Apple to Open Up

The alternative to Apple Pay was made possible by the EU's Digital Markets Act (DMA). In 2024, the EU Commission accused Apple of market abuse because the company reserved the NFC interface exclusively for Apple Pay. Since 2025, third-party providers must gain access to the technology. The first provider to launch contactless payments on the iPhone was PayPal in May, followed by Curve Pay.

The Volksbanken solution differs from PayPal and Curve in its focus on the Girocard. While PayPal uses a virtual Mastercard and Curve bundles multiple cards, the VR-Banking App concentrates on the debit card system widely used in Germany. The function has been available on Android for years.

It is not known whether the BVR plans to integrate credit cards into the app in the future. Currently, the focus is on optimizing Girocard functions. In parallel, the network is working on expanding Wero, the European payment system, which is also expected to be available for in-store payments from 2026.

(mki)