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[BUSINESS] · EU, United States, Russia · 4 sources

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European Union seeks alternatives to Visa and Mastercard

The European Union is actively working to reduce its reliance on American payment giants Visa and Mastercard, which currently process 61% of card payments in the eurozone and nearly all cross-border transactions. EU leaders view this dependence as a strategic and geopolitical risk, citing the potential for payment infrastructure to be used as a political tool, similar to the disruption seen in Russia following US sanctions.

To address this, the European Central Bank (ECB) is promoting the development of a digital euro. This electronic form of the currency is intended to complement existing banking services and cash rather than replace them. A pilot program is expected to launch in 2027, with broader implementation targeted for 2029.

In parallel, the private sector is pursuing independent solutions. The European Payment Alliance (EuroPA) and the European Payments Initiative (EPI) have signed an agreement to interconnect various national instant payment systems, such as Portugal’s MB WAY, Spain’s Bizum, and Poland’s Blik. This initiative aims to allow users to transfer money across European borders using their existing domestic applications, potentially reaching 380 million users across 15 countries.

Entities

Christine Lagarde · European Central Bank · European Payments Initiative · European Union · Mastercard · Visa

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