BNP Paribas is backing attempts by the European Payments Initiative to wrest control of the EU's payments ecosystem away from US card schemes and Big Tech giants and secure the Bloc's sovereignty in payments.
Backed by a consortium of European banks, the EPI's Wero wallet already counts more than 40 million enrolled customers and is fully functional for P2P and P2Pro payments.
As a next step, EPI plans to launch e-commerce payments from the summer of 2025 onwards, first in Germany and Belgium, to be followed by France and the Netherlands. By the end of 2026, the EPI's ambition is to not only cover e- and m-commerce payments but also encompass omni-channel payments, point of sale/in shop payments and invoice payments.
Thierry Laborde, chief operating officer, BNP Paribas, says: "Sovereignty in payments is no longer a future ambition, it is a European necessity. And today, with EPI Company, we have a solution designed by Europeans, for Europeans."
Currently, Visa and Mastercard process 65% of euro area card payments, while US tech giants such as Apple, Google and PayPal are also gaining popularity. As European Central Bank chief economist Philip Lane recently remarked: "This dependence exposes Europe to risks of economic pressure and coercion and has implications for our strategic autonomy, limiting our ability to control critical aspects of our financial infrastructure."
However, a one-brand fits all approach is never likely to come to fruition - Wero is not the only fully functional player in Europe, with many other digital payment schemes live in many markets.
"Our strength lies in cooperation," says Laborde. "We are ready to work hand in hand with local European digital payment networks to build a shared merchant acceptance infrastructure, ensuring interoperability, scalability, and cross-border functionality.
"The message is clear: If we want to secure Europe’s sovereignty in payments, now is the time to join forces."
The calls to arms is backed by the EPI: "The 16 European shareholders supporting EPI consider that the various current European initiatives can already partly now and in the near future, very broadly achieve sovereignty for payments across Europe through their cooperation and their further developments, by leveraging the existing customer base and usage we have already established."