Khaberni - Europe is witnessing a silent war against the dominance of the American companies "Visa" and "Mastercard," amidst rising concerns about the continent relying on payment systems outside its control, particularly as geopolitical tensions escalate across the Atlantic, according to a report by the "Financial Times".
According to data from the European Central Bank, Visa and Mastercard accounted for about two-thirds of payment card transactions in the Eurozone in 2022, while 13 European countries lack an effective national alternative, and even in countries that have local systems, their use is gradually declining in favor of American networks.
With the accelerated decline in the use of cash, European officials fear the potential use of payment systems as a tool for political or economic pressure, should relations with the United States deteriorate.
In this context, Martina Weimert, the CEO of the European Payments Initiative, which includes 16 major banks and financial institutions, emphasized the need for swift action.
In her statements to the Financial Times, she said: "We rely heavily on international payment solutions, we have good national systems, but we do not have a cross-border network within Europe," and added that "independence is no longer a deferred option, but rather a matter of time that requires urgent action."
European officials warn that the deep interconnection with the United States, previously seen as a guarantee of stability, could turn into a strategic vulnerability point.
In an attempt to reduce this dependency, the European Payments Initiative launched "Weiro" in 2024, a digital payment platform that serves as a European alternative to services like "Apple Pay". The service currently has about 48.5 million users in Belgium, France, and Germany, with plans to expand to online and in-store payments by 2027.
However, past attempts to create a unified European card system have faced difficulties related to standardizing norms among member states and varying interests of banks, raising questions about the current initiatives' chances of success.
Alongside the Mastercard and Visa crisis, the European Central Bank is working on the "Digital Euro" project, which is supposed to enable electronic payments throughout the Eurozone.
The Digital Euro is planned to be officially launched by 2029, with merchants obligated to accept it in stores and online. Supporters of the project believe that it could form the basis for a comprehensive European payment network that competes with Visa and Mastercard.
The project is accompanied by ongoing controversy, as some banks oppose it fearing that it might affect the role of the private sector in the payments market, while others consider it a strategic step that is essential for protecting Europe's financial independence.
Between the ambition to build an independent European payment system and the technical and political challenges that stand in the way, the battle against Visa and Mastercard's dominance presents a real test of the European Union's ability to transform geopolitical anxiety into a comprehensive economic project.
