Wero's recent collaboration with Bizum - what's the reason behind it?
The European Payments Initiative (EPI) has announced a strategic pivot in its approach, aiming to strengthen European payment sovereignty in the face of escalating trade conflicts with the US and growing concerns over reliance on US-based payment networks. This shift reflects a broader EU ambition to build a unified, interoperable payment framework.
Initially, EPI had reservations about collaborating with other payment systems due to potential investments in each country. However, recognising the limitations of isolating efforts, EPI is now seeking partnerships with national payment schemes and initiatives, such as the European Payments Alliance (EuroPA). The goal is to pool resources and expertise to create a more robust, seamless payment ecosystem spanning multiple countries, covering over 380 million consumers.
This collaborative approach aligns with broader EU strategies to secure digital and financial autonomy. Regulatory trends, like the SEPA Instant Payments Regulation, which mandates fast, interoperable euro transfers, are driving the need for instant, seamless, and secure payments throughout the EU. By harmonising instant payment services and integrating mobile payments across up to 15 countries, EPI aims to offer alternatives to dominant US card networks.
The need for such sovereignty is underscored by geopolitical and economic factors. The EU's desire to retain control over its financial infrastructure is partly driven by the risks posed by external dependencies in times of political or economic pressure, such as trade wars. EPI's collaborative approach seeks to create a self-reliant European payments ecosystem resilient to external pressures and aligned with EU economic and security priorities.
Notably, EPI has changed its stance towards some defectors, including Caixabank, BBVA, Banco Santander, and a consortium of twelve smaller Spanish banks, who left before the launch of Wero. The organisation is open to cooperating with all European institutions, with further details to be communicated later.
Wero, EPI's wallet for contactless payments, is currently not available in Southern Europe, which is seen as a weakness. However, EPI is prioritising speed over resentments against defectors and previous strategies, and is seeking to expand the use of Wero across Europe.
More and more restaurants and small businesses in Spain are accepting payments through Wero, and the system could increasingly be perceived as an ethical alternative to American tech giants. EPI believes it's time to act, calling on European payment systems and banks to unite and collaborate due to the current geopolitical development. With potential political backing, EPI's goal with Wero is to become the leading P2P payment system across Europe.
- EPI's collaborative approach is extending to the realm of banking and finance, as they are open to partnering with European institutions, aiming to create a unified, self-reliant, and resilient European payments ecosystem by pooling resources and expertise.
- In the tech-driven business landscape, EPI, with its focus on harmonising instant payment services, is developing Wero, a wallet for contactless payments, in an attempt to offer alternatives to dominant US card networks and compete as the leading P2P payment system across Europe.
