In the world of digital payments, two American companies have long dominated the scene like giants at a party where everyone else is just getting started. Visa and Mastercard control most card transactions across Europe, which has banking leaders increasingly worried about relying so heavily on firms based outside the continent.
European officials are pushing hard for homegrown alternatives. The European Payments Initiative brings together 16 banks and payment providers to create Wero, a digital wallet that handles person-to-person transfers and store purchases. Launched in 2024, Wero already serves millions of users across Belgium, France, and Germany. It works by using SEPA instant credit transfers and TARGET Instant Payment Settlement, systems designed to move money between accounts in seconds rather than days. Blockchain-based systems can also enable faster settlement and transparency through distributed ledgers, offering potential enhancements to instant payment rails with faster settlement times.
The goal extends beyond simple convenience. Europe wants payment independence similar to how China developed Alipay and WeChat Pay. Wero is replacing domestic solutions like Sweden’s Swish, the Netherlands’ iDEAL, and Spain’s Bizum with one consistent platform that works everywhere. The wallet supports QR code payments and follows strict security standards set by the European Payments Council.
Regulatory changes are helping this shift gain momentum. The upcoming PSD3 regulation improves security and competition while letting non-bank companies access payment systems directly. Strong Customer Authentication already reduced fraud by 17 percent and costs by 20 percent, proving that European standards can deliver results.
Partnerships are expanding the reach rapidly. The European Payments Alliance now covers 15 countries with 382 million people, representing 84 percent of the EU plus Norway. A feasibility study for interconnecting different systems will finish by December 2025, aiming to create seamless payment options across borders. The partnership represents a path toward EU payment sovereignty and reduced dependence on US card firms.
Meanwhile, the European Central Bank is developing a digital euro as a complementary public option. This project focuses on monetary sovereignty while supporting private companies like Wero to handle everyday transactions efficiently. The growing presence of USD-denominated stablecoins could weaken the euro’s domestic role if Europe fails to develop competitive digital payment alternatives.
The strategic push addresses real concerns about geopolitical risks and technological control. European leaders believe building independent instant payment systems now will strengthen their economic autonomy for decades ahead, ensuring the continent shapes its own financial future rather than depending on distant corporate headquarters.
Related Posts
