WERO - WILL IT NEUTRALIZE MASTERCARD AND VISA?

 

WERO - WILL IT NEUTRALIZE MASTERCARD AND VISA? - Filenews 17/3

The European Union and the citizens of its countries spend trillions of euros every year on card payments, but outside the control of the European system. The European Commission and European banks want to put an end to Europeans' dependence on the American giants Visa and Mastercard.

Today, most card or internet purchases in Europe go through Visa or Mastercard and this is now considered dangerous by the European Commission and the European Central Bank.

To address this situation, Wero is being promoted by the European authorities. A digital wallet created by European banks and payment companies to bypass American card networks.

As Euronews writes, Wero relies on instant bank transfers, which eliminate intermediaries, reduce fees and keep data within Europe. Wero already counts tens of millions of users in Germany, France and Belgium and is growing rapidly, for the time being in the Netherlands and Luxembourg. It is not offered in Greece and Cyprus. Full European coverage (including Greece and Cyprus) is planned to take place in the coming years, probably 2027-2028, as more banks join the new payment system.

The European Central Bank (ECB) warns that dependence on foreign payment systems leaves the EU vulnerable to political pressure or sudden disruptions in transactions.

ECB President Christine Lagarde has made it clear that the majority of digital payments in Europe are now processed through US or Chinese systems. As he points out, this is a weakness that Europe must address. Retailers report that the commissions of card networks have risen sharply in recent years.

Direct payments through banks could boost competition and help both businesses and consumers save money, Euronews points out.

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