There are no social or political reservations with regard to online pawning services.
Undertakings engaged in pawnbroking, where they conduct this business by granting loans against pledges, are not deemed to be credit institutions, but need a license according to section 34 of the industrial code (Gewerbeordnung –“GewO”).
The remuneration and interest the pawnbroker can demand is regulated in the Pfandleiherverordnung (PfandlV). According to the PfandlV the pawnbroker can demand 1 % interest per month, a remuneration, which can be freely negotiated for loans above 300,00 Euros, and the necessary costs for the exploitation of the pawn.
The costs for a licence are about 400 Euros.
The provider of the pawn service has to be reliable also with regard to his financial situation.
The market online pawnbroking is a niche market in Germany.