Wero is poised to become the leading sovereign payment solution in Europe, as the main competitor to Visa, Mastercard and others PayPal, Apple and Google Pay. Its rapid expansion and access to the single market make it a solid alternative to American networks.
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Challengea new digital wallet launched as part of the European Payments Initiative (IEP, European Payments Initiative), is now operational in Germanyin Belgium and in Franceenabling cross-border payments throughout Western Europe.
Backed by 16 European banking groups and two acquirers, including BNP Paribas SA (and other French banks), Deutsche Bank AG and Worldline AG, it aims to become the first pan-European payment solution for the single market, in line with the unity strategy of the banking sector.
In a press release issued in Brussels, EPI describes itself as “a European player committed to offering a sovereign payment solution to all consumers on the continent”.
According to Joachim Schmalzl, President of EPI, “the launch of Wero marks an important step in strengthening Europe’s financial independence. Other features will follow, making Wero a central solution for all transactions.
“Our goal is to sustainably develop this innovative solution, paving the way for a secure and efficient digital payment future in Europe.”
Services Wero
In October 2023, the European Payments Initiative (EPI) acquired e-commerce payment network iDeal in the Netherlands and fintech company Payconiq International in Luxembourg.
This acquisition aims to establish a unified instant payment system and platform for Europe.
EPI announced in a press release issued in July that its first service would focus on person-to-person transactions (Goodbye, Paylib in France), allowing users to transfer funds in 10 seconds using a phone number, email address or app-generated QR code, without the need for an IBAN number.
This service works like a direct debit between banks and is available 24 hours a day, 7 days a week, at no additional cost.
Wero also provides users with a comprehensive overview of their account balance and spending in real time, enabling secure and convenient payment management.
Initially launched with German savings banks and popular banks, Wero has been extended to Deutsche Bank and is now available in Brussels and France.
However, each bank is in control of its calendar, and can choose to integrate it whenever it wants on its mobile application. So, BNP Paribas and Société Générale start the operation from October 24, following the “Septemberists” BPCE (Caisse d’Epargne) and Crédit Agricole. La Banque Postale should follow on October 28 and Crédit Mutuel Arkéa next January.
Payment services for small businesses will be introduced via online invoices using QR codes in 2025, followed by online and in-commerce payments by the end of 2025, and support for online payments. store in 2026, as well as features such as “buy now, pay later” and other tailor-made services.
However, Wero remains a private initiative and cannot replace public money, as the digital euro of the European Central Bank.
Challenges to overcome to compete with American competitors
The urgency to develop an independent European cross-border payment service has intensified in recent years, particularly following the suspension of Visa and Mastercard services in Russia in response to the 2022 invasion of Ukraine.
ADVERTISEMENTThis situation highlighted the vulnerabilities of Europe’s dependence on external, non-European payment systemsemphasizing the need for greater financial sovereignty.
Wero, with its instant payment capabilities and the support of major European banks, has a solid foundation to challenge its American counterparts such as Visa, Mastercard and PayPal.
However, it could face significant obstacles in achieving this level of competition. To succeed, Wero will need to drive widespread consumer adoption and expand its services to other European markets.
Achieving this will likely require time and strategic growth to effectively compete with its U.S. counterparts.
ADVERTISEMENTMartina Weimert, EPI’s chief executive, said it would be “very presumptuous” to call Wero a “challenger”, describing the company as “a kind of startup”.
