Latest News

The CEO of the European Payments Initiative says Trump's fears have boosted its appeal

The CEO of the European Payments Initiative, who is based in Brussels, said that fears of President Donald Trump's administration limiting Europe's?access to U.S. payment infrastructure has boosted regional adoption of a rival European payment platform. Wero, a payment platform developed by the Brussels-based firm, is an alternative to Mastercard Visa and Apple Pay, which dominate in-store payments across Europe.

Founded by 16 major European banks including BNPParibas, Deutsche Bank and other payment providers in 2020, the group now has 45 members. Fintechs Mollie and Worldpay have recently joined, as well as N26 and?.

EUROPEANS FEAR BEING CUT OFF from US PAYMENTS System EPI's CEO,?Martina Weimert, said that there is a sense urgency to reduce European dependence on U.S. companies. In an interview, when asked if merchants were preparing for the possible cut-off of Europe from the financial systems of the Trump administration, she replied "absolutely". She also said that two large merchants had cited Wero's international resilience as the reason they chose it. Weimert stated that this scenario was not a completely 'out of the blue' event. She said that these things can happen very quickly.

Trump's "America First", which is upending the global order, and tearing apart long-standing transatlantic relations, has prompted European Union efforts in order to reduce their reliance on U.S. firms, especially those involved in strategic industries such as payments, technology, etc. Wero is facing a steep uphill battle when it launches in 2024. According to the European Central Bank, it is currently only used for peer-to -peer transfers. International card schemes such as Visa and Mastercard, however, account for two thirds of euro zone card transactions.

The national payment schemes supported by the banks of Spain and Italy raises concerns about fragmentation despite their promises to work together on a pan European platform.

DIGITAL EURO SCEPTICISM

Wero is now available in Belgium, France, and Germany. Its number of users has risen from 43.5 million to 52.5 million, which is still only a small fraction of the payments industry in Europe. EPI has plans to expand into Luxembourg and the Netherlands within the next 12 months. Weimert stated that she did not see the digital euro which the ECB intends to issue in 2020 as competition, but rather something that could be incorporated into Wero's wallet. She was concerned if it arrived soon enough. "I have no problem with the digital euro. "I don't have a problem?with the digital euro."

(source: Reuters)