A Finextra member 17 November, 2021, 13:05 0 likes

Well the only ones with ask the money at the moment are Visa and Mastercard who impose a non-negotiable "market development fee" (MDF) on merchants for this sort of thing. I think it's unfair to say retailers are unwilling to pay when in fact retailers are unwilling to pay more. Perhaps EPI can ask for a slice of the card schemes MDF for which they see no benefit whatsoever! 

A Finextra member 17 November, 2021, 13:10 0 likes

Correction: With all the money, not ask. 🤦��‍♂️

Roberto Garavaglia - Innovative Payments & blockchain Strategic Advisor - Milan 17 November, 2021, 15:15 1 like

"The EPI is striving to create a unified pan-European payment system, offering a card for consumers and merchants across Europe" 
... ehmm, it's EPI on same way of the unforgettable "forgotten" past initiatives like Monnet Project, EAPS?

A Finextra member 17 November, 2021, 22:23 0 likes

If the EPI is a sensible project it should be no problem to get the funding in an environment where literally billions of funding has been available for FinTech projects. And indeed there are financials who have FinTech venture funds, there are governments with subsidies available. 

A Finextra member 18 November, 2021, 08:42 0 likes

The main issue is that investors in fintech, typically private equity, would expect a huge value creation which means profitable expansion to be expected and then an exit via a successful sale of the company or an IPO. Banks as investors would expect a healthy profit and a dividend of at least 10% of the investment which also means profit and thus pricing of the services accordingly. A non-profit investment into EPI would be a burden to bank stock-owners and stock market analysts would rate the EPI down. This is clearly not the intended EU authorities agenda for EPI. EPI is regarded by authorities and merchants  as a low cost or even a  for free European payment infrastructure. The natural "for free" investors would be the ECB who is the main oral sponsor  together with the treasuries of the seven member states, the secretaries of finance who recently gave a strong oral support. These two  "sponsor groups" are however unlikely to open their wallets for the EPI. If the EPI is to be built to replace Visa and Mastercard in the Eurozone regarding at least debit card payments and atm withdrawals, it needs strong owners willing to pay up "whatever it takes", and stamina to stay in the build-up game for 10 years or more.    

A Finextra member 18 November, 2021, 15:51 1 like

I find this conversation about creating a European Payment syste4m amazing.  In 1991 I was appointed General Manager of European Payment System Services.  A European technology company focused on debit and credit card transactions covering the landmass between Iceland and the eastern tip of the USSR.  The following year I merged my company into the newly formed Europay International, and there, we had brand, sales, marketing, member services, and technology bound into one company.  Then in 1999, The European owners of Europay decided to sell Europay International to MasterCard International. a few years later, I joined Visa Canada and watched the creation of an independent company called Visa Europe.  Eventually, the European Banks sold Visa Europe back to Visa.

We could discuss the multiple initiatives lost to the annals of time to create an independent payment company in a global economy. 

Yet having tried so often before once again, Europe wants to create a new European Payment company.  Is it all about profit or isolation?

A Finextra member 18 November, 2021, 16:04 1 like

@Philip Andreae. I think the banks in Europe are under pressure to (a) reduce their dependency on the big international players and the potential threat of the GAFA's and China and encouraged to create an EU wide payment network and (b) consolidate the current fragmentation of the domestic card schemes into a product that can be used across all EU member states.

My personal view is that without some form of EU Central Bank funding, it'll fail as have all the others.

A Finextra member 18 November, 2021, 16:17 1 like

Eurocard and Eurocheque to great Brands. Acquirer the brands and ask those who want a european payment scheme to invest.  Global investors are not going to see the value of another payment scheme.  Consolidation is good for their ROI.  The Banks could sell their Visa MasterCard shares and reinvest in a European scheme.