Increased Reliance on Wero, Decreased Usage of PayPal
Europe Urged to Break Away from U.S. Dominance in Digital Payments
Frankfurt – In a call-to-action address at the 23rd Retail Banking Day of the Börsen-Zeitung, Tanja Müller-Ziegler, board member of the Association of German Volksbanks and Raiffeisen Banks (BVR), urged Europe to free itself from digital dependence, particularly on the U.S. She emphasized the pressing need for the continent to develop its own digital payment solutions and implement them swiftly.
Europe is standing at a critical juncture, with international tensions escalating the need for self-reliance. As Müller-Ziegler pointed out, the question is no longer feasibility but whether Europe has the fortitude and political will to implement independent solutions.
Central to this effort is the development of the Digital Euro, a secure, universally accepted payment option for European consumers. The European Central Bank (ECB) is working towards launching this digital currency as a means to maintain financial sovereignty, reduce dependence on foreign payment providers, and safeguard Europe's economic independence.
By providing a cost-effective standard that encourages private-sector collaboration, the digital euro will pave the way for innovation across Europe, benefiting local payment firms at the expense of U.S. giants.
Additionally, the EU's Instant Payments Regulation is mandating that euro-denominated banks fully support instant payments by October 2025, with non-euro countries following by 2027. This regulation will create a more efficient and less costly European payments landscape, empowering banks and consumers alike and further reducing reliance on U.S.-based payment systems.
From 2025, Payment Service Providers (PSPs) in Europe will gain direct access to core European payment infrastructures, which will allow them to become central players in the instant payments ecosystem. This move will enhance the overall resilience and self-sufficiency of Europe's payment infrastructure, further minimizing dependence on foreign operators.
Furthermore, projects on payment interoperability across Europe are underway, with the aim of harmonizing digital payment systems while respecting national differences. Collectively, these initiatives constitute a comprehensive approach to developing a robust, sovereign European payments ecosystem, limiting the influence of global payment giants primarily based in the U.S.
In conclusion, the European Union is making substantial progress in breaking its digital dependence on the U.S. by launching the Digital Euro, enforcing instant payment regulations, granting direct access to European payment infrastructures for providers, and promoting payment interoperability. These strategic steps signal a significant shift towards an independent and resilient European payment system.
- The European Central Bank's (ECB) initiative to launch the Digital Euro is aimed at reducing Europe's dependence on foreign payment providers, such as US-based giants, and safeguarding its economic independence.
- By mandating banks to fully support instant payments by 2025 and granting Payment Service Providers (PSPs) direct access to European payment infrastructures, the EU aims to create a more efficient, cost-effective, and self-sufficient European payments landscape, thereby limiting the influence of global payment giants primarily based in the US.
