Europe is accelerating efforts to build its own payment network and reduce its dependence on American financial giants Visa Inc. and Mastercard Inc., turning what was once a long-term policy goal into a strategic economic priority. European Central Bank President Christine Lagarde has emerged as the initiative’s strongest advocate, arguing that Europe cannot claim true economic sovereignty while relying on foreign-controlled payment systems.
The concern is backed by significant market share. Visa and Mastercard together process an estimated $24 trillion in transactions annually, while handling roughly 61% of euro-area card payments. In 13 of the eurozone’s 21 member states, cross-border card transactions rely exclusively on international payment networks. European officials increasingly view that dependence as both an economic and geopolitical vulnerability.
At the center of Europe’s response is Wero, a digital payment platform launched in 2024 by the European Payments Initiative (EPI). The service began by offering instant person-to-person transfers before expanding into online payments. In-store tap-to-pay capability is scheduled to roll out during 2026 and 2027. The platform has already attracted more than 43 million users across Germany, France and Belgium while processing billions of euros in transactions, with additional expansion into the Netherlands, Luxembourg and Spain.
Momentum increased earlier this year when the European Payments Initiative reached an agreement with the EuroPA Alliance, connecting national payment systems including Spain’s Bizum, Italy’s Bancomat, Portugal’s MB WAY and the Nordic Vipps MobilePay platform. Together, the partnership links roughly 130 million users across 13 European countries, allowing consumers to make payments across borders without routing transactions through American card networks.
The financial incentives are substantial. Traditional card networks generally charge merchants interchange and processing fees, while Wero relies on the Single Euro Payments Area (SEPA) instant payment infrastructure to move money directly between bank accounts. For retailers processing millions of transactions each year, even modest savings can translate into significant reductions in payment costs while keeping customer payment data within Europe’s banking system.
European policymakers are advancing broader reforms alongside the new payment network. The European Parliament has backed development of a digital euro targeted for introduction later this decade, while major European banks continue developing a euro-backed stablecoin. Updated European Union payment regulations have also expanded open-banking access and tightened fee rules, increasing competition with established card providers.
The challenge remains significant. Mastercard alone has more than 900 million branded cards in circulation across Europe, far exceeding Wero’s current user base. Adoption has also been gradual in some markets. Analysts note that consumers generally choose payment methods based on convenience, speed and reliability rather than questions of economic sovereignty, meaning any new platform must match the seamless experience customers already expect.
Supporters argue that recent geopolitical events have strengthened Europe’s resolve. The suspension of Visa and Mastercard operations in Russia following the 2022 invasion of Ukraine demonstrated how globally dominant payment networks can become tools of international policy. Combined with broader trade tensions between Europe and the United States, policymakers say the experience reinforced the need for independent European payment infrastructure.
For businesses, the outcome could eventually mean lower transaction costs and greater control over payment data. For consumers, the success of Europe’s strategy will depend on whether the new payment systems prove as convenient and reliable as the global networks they are attempting to challenge.
JBizNews Desk | Brussels
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