20 October 2017
Find out more

EU banks discuss debit rival to MasterCard and Visa

11 May 2007  |  10849 views  |  0 credit card

A group of Europe's largest banks are holding secret discussions to establish a pan-European debit card scheme that would challenge those operated by MasterCard and Visa, according to banking consultancy Lafferty Group.

The banks inolved include Société Générale, Deutsche Bank, Dresdner Bank, Commerzbank, Unicredito, ABN Amro, ING and Rabobank, says Lafferty.

The group is believed to be unhappy with the possible emergence of MasterCard's Maestro as the dominant provider of debit card network services in Europe, particularly following the introduction of the single euro payments area (Sepa) in 2008.

Lafferty says both the European Commission (EC) and the European Central Bank (ECB) are concerned that competition in the market would be undermined by the emergence of Maestro as the dominant player, particularly as Visa's rival debit system, V Pay, hasn't gained widespread support from European banks.

But the consultancy says there is contrasting information on the progress the European banks have made so far. According to one source, a working group has been established to examine the feasibility of using the Euro Alliance of Payment Schemes (EAPS) as a basis for forming the new debit card system. But another source claims that disussions have only occurred at board level within the banks and no technical issues have been discussed.

But news that some of Europe's largest banks are considering setting up their own debit system will have "profound implications for the strategy of MasterCard to establish Maestro as the default debit scheme within Europe," says Lafferty.

In May last year Belgium's bank-owned payment network, Banksys, said it was switching its domestic debit card system to MasterCard's Maestro platform in time for Sepa, but the decision was reversed by the Belgian banking federation, Febelfin, in April this year following protests from retailers concerned about interchange fees and uncertainty about legislation surrounding payments processing.

Mastercard retaliated by re-affirming its intention to introduce Maestro as a local debit scheme in Belgium at the beginning of 2008, in direct competition with Banksys' Bancontact system.

Meanwhile in December the Sparda co-operative banking group in Germany - which comprises 12 national banks and 2.65 million members - said it was ditching its domestic debit ec (electronic cash) scheme in favour of using MasterCard's Maestro for both national and international debit card payments.
KeywordsLEGALSEPA

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Failed Sepa transactions to cost banks EUR1.3bn

Failed Sepa transactions to cost banks EUR1.3bn

19 April 2007  |  8401 views  |  0 comments
Belgian banks reverse decision on Maestro switch

Belgian banks reverse decision on Maestro switch

02 April 2007  |  9285 views  |  0 comments
Banksys teams with telcos to launch m-payments platform in Belgium

Banksys teams with telcos to launch m-payments platform in Belgium

20 March 2007  |  10118 views  |  0 comments
Sepa costing more than expected; credit card schemes are set to benefit

Sepa costing more than expected; credit card schemes are set to benefit

27 February 2007  |  12009 views  |  0 comments
EU meddling in interchange threatens to derail Sepa project warns MasterCard

EU meddling in interchange threatens to derail Sepa project warns MasterCard

01 February 2007  |  12467 views  |  0 comments
German co-op banks to ditch domestic debit scheme

German co-op banks to ditch domestic debit scheme

07 December 2006  |  8835 views  |  0 comments
Banksys cans BC/MC national payments system in favour of Maestro

Banksys cans BC/MC national payments system in favour of Maestro

18 May 2006  |  9363 views  |  0 comments

Related company news

 

Related company information

ABN Amro

Related blogs

Create a blog about this story (membership required)
visit www.fivedegrees.nlvisit www.innotribe.comvisit www.capgemini.com

Top topics

Most viewed Most shared
Ripple looks to drive bank adoption with $300m XRP rebate programmeRipple looks to drive bank adoption with $...
16031 views comments | 12 tweets | 4 linkedin
satelliteGates Foundation backs Ripple collaboratio...
8260 views comments | 13 tweets | 10 linkedin
HSBC partners Bud for open banking trialHSBC partners Bud for open banking trial
7655 views comments | 20 tweets | 26 linkedin
IBM uses blockchain to improve cross-border payments processingIBM uses blockchain to improve cross-borde...
7258 views comments | 9 tweets | 17 linkedin
Sibos 2017: API or the highwaySibos 2017: API or the highway
6572 views comments | 10 tweets | 21 linkedin

Featured job

Competitive base, commission, benefits
London, UK

Find your next job