The EU needs a payment system independent of Mastercard and Visa

The European Central Bank wants to end the region's dependence on Visa and Mastercard for payments by implementing its own tool that avoids intermediary costs and sudden disruptions

Payments, transfers, and other transactions in euros within the European Union are carried out using Mastercard and Visa. As a response to eliminate dependence on these intermediaries, the European Central Bank has implemented the Wero digital wallet.

This tool already has tens of millions of users in Germany, France, and Belgium. With its implementation, the region is moving toward eliminating costs associated with using US or Chinese payment systems and toward protection against sudden disruptions due to events such as armed conflicts or cyberattacks.

With Wero, “a digital wallet created by European banks and payment companies to eliminate card networks,” instant bank transfers are made, “eliminating intermediaries, reducing fees, and keeping data within Europe.”

The EU wants to free itself from payments using foreign systems, as the global dominance of Visa and Mastercard represents a vulnerability for the region, as ECB President Christine Lagarde has pointed out.

M.Pino

Source: euronews

(Reference image source: Masood Aslami on Unsplash)

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