Europe urgently needs to reduce its dependence on American payment systems such as Visa and Mastercard, said Martin Weimert, head of the European Payment Initiative (EPI).
It fears that their dominance by Americans in the market could be used as a weapon if transatlantic relations deteriorate, writes the Financial Times.
"We are heavily dependent on international [payment] solutions. Yes, we have good national assets, such as domestic payment systems, but we have nothing cross-border," said Weimert.
According to the European Central Bank (ECB), in 2022, Visa and Mastercard accounted for nearly two-thirds of transactions in the eurozone, with 13 member countries lacking a national alternative to American payment systems. However, even where there are domestic payment systems, their usage is declining, the newspaper notes.
"Deep integration has created dependencies that could be abused when not all partners are allies," warned former Italian Prime Minister and ex-ECB head Mario Draghi. "Interdependence, once seen as a source of mutual restraint, has become a source of leverage and control," he added.
EPI, which includes BNP Paribas and Deutsche Bank, launched a European alternative to Apple Pay called Wero in 2024. Currently, this digital payment system has 48.5 million users in Belgium, France, and Germany, with plans to expand its usage by 2027.
The ECB is also promoting the idea of a digital euro across the eurozone to strengthen the EU's monetary sovereignty.
