Wero's recent collaboration with Bizum - the reason behind it.
The European Payments Initiative (EPI) is set to launch a new contactless wallet for contactless payments at checkout, increasing the pressure on existing payment providers [1]. This strategic move is part of a broader shift towards cooperation with other payment systems, aiming to enhance cross-border payment connectivity, improve interoperability, and address Europe’s payments "sovereignty challenge" [1].
The cooperation is driven by several key reasons. Firstly, EPI aims to enable citizens to continue using their preferred local payment solutions across borders for both person-to-person and merchant transactions online and in-store, addressing the fragmentation in the European payment landscape [1].
Secondly, the initiative seeks to improve interoperability between existing domestic systems by collaborating with payment providers such as Bancomat, Bizum, MB WAY, and Vipps MobilePay under the European Payments Alliance (EuroPA) [1]. This technical collaboration is intended to create a seamless payment experience across multiple countries and systems within the EU and beyond.
Thirdly, EPI is focusing on Europe’s sovereignty and independence in payments, aligning with policy goals set by the European Commission and the Eurosystem [1]. The collaboration is framed as a fast-track route toward European payment autonomy by leveraging existing infrastructures rather than creating a new system from scratch.
Lastly, EPI aims to extend coverage into markets lacking widely adopted digital payment systems, thereby increasing ease of use and consistency for consumers and merchants [1].
This shift towards cooperation reflects a pragmatic approach, moving away from a solely independent and isolated payment system towards a cooperative model that leverages and connects established domestic solutions to meet broader European payments policy objectives [1][3].
Notable figures in the payments industry, such as Thomas Walkner, a payment expert at Capco, and Gijs ter Horst, CEO of Ximedes, have expressed support for this strategic change [2][4]. Ter Horst suggests that EPI could be perceived as an ethical alternative due to criticism of American tech giants [4].
The ECB President, Christine Lagarde, has also warned about the market power of American payment providers and the need for a European offering [5]. As more and more restaurants and small businesses in Spain adopt Wero, the digital payment solution developed by EPI, the pressure to rapidly advance the use of Wero for European payment sovereignty grows [6].
Further details about the cooperation will be communicated in the near future [3]. Lukas Homrich, a freelance journalist who writes about economic and financial topics, particularly enjoys philosophizing about business models, will no doubt keep a close eye on EPI’s progress.
References: 1. EPI Strategic Shift Towards Cooperation 2. Thomas Walkner on EPI's Cooperation Strategy 3. EPI Announces Cooperation Framework 4. Gijs ter Horst on EPI's Cooperative Model 5. Christine Lagarde on European Payments 6. Wero Adoption in Spain
The European Payments Initiative (EPI) is not only focusing on launching a new contactless wallet for contactless payments, but also aims to collaborate with existing domestic payment systems such as Bancomat, Bizum, MB WAY, and Vipps MobilePay under the European Payments Alliance (EuroPA) [1]. This cooperation is part of a broader move towards enhancing the sovereignty and independence of Europe in business, finance, and technology matters, particularly in the realm of payments [1].
