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Payments

OTTO enters the payment market and founds OTTO Payments

2/21/2023
In June 2021, Bafin (German Federal Office for Financial Services Supervision) granted OTTO the necessary license with that OTTO Payments can now offer merchants and marketplace partners various payment options from a single source. This provides many advantages for merchants and customers.

The biggest advantage of our subsidiary OTTO Payments is that we are no longer reliant on external service providers for invoice and instalment purchases.

A look back

Until now, the complex technical integration of the various payment services was partly carried out by OTTO itself as well as by external service providers. This was about to change: In order to drive forward the transformation to a platform, OTTO decided to set up its own payment company and thus create the basis for a standardised and modern payment process in the checkout. PEG Payment Entwicklungsgesellschaft mbH was founded for this purpose in autumn 2020. The application for a licence was then submitted in February 2021. The licence was granted on 21 June 2022. Mirko Krauel, Managing Director Market at OTTO Payments: ‘We are proud to have established a payment service provider with a licence from the corporate world in just under two years.’
Advantage for customers
For our customers, the payment process at the end of an order is standardised and clearly structured by OTTO Payments. Put simply, there is only one invoice per order and different payment methods can be used.

With OTTO Payments we can offer the following payment methods:

  • Purchase on account (creditworthiness required)
  • Payment by instalments (subject to creditworthiness, for an additional charge)
  • 100 days payment break (creditworthiness required, for an additional charge)
  • PayPal
  • direct debit
  • Credit card/debit card
  • Prepayment
  • Advantage for the seller

The money of customers who pay their invoices no longer takes a diversion via external service providers, the partners now receive the payments faster. The marketplace partners on otto.de are connected to OTTO Payments.