Europe is moving to establish its own payment system, Wero, to reduce reliance on American giants Mastercard and Visa. This initiative, driven by European banks and payment companies, utilizes instant bank transfers to bypass traditional card networks.
Wero aims to lower transaction fees and retain data within Europe. Already boasting tens of millions of users across Germany, France, and Belgium, its adoption is accelerating.
Key motivations behind Wero include enhancing control and reducing costs. The European Central Bank highlights the vulnerability of relying on foreign payment infrastructure, pointing to instances like Visa and Mastercard's swift withdrawal from Russia following the Ukraine invasion as a potential risk.
European Central Bank President Christine Lagarde has identified the dominance of US and Chinese payment systems in Europe as a significant weakness. Furthermore, rising card network fees are impacting businesses, with direct bank payments offering a potential solution for cost savings.
EU leaders view payment systems as critical infrastructure, underscoring the strategic importance of developing an independent European solution.