European mobile payment system Wero launches in Belgian banks Chris Mendez | usagoldmines.com

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BNP Paribas Fortis, Belfius, ING and CBS are now offering customers in Belgium Wero through their apps, according to the European Payments Initiative.

The digital wallet is also operational in Germany and France, enabling cross-border payments across Western Europe.

It aims to become the first Pan-European payment solution for the Single Market, aligning with the banking sector’s strategy for unity.

The Netherlands and Luxembourg are expected to follow suit in the future.

Wero services

As reported by Euronews’ Tina Teng, in October 2023, the European Payments Initiative (EPI) acquired the e-commerce payment network iDeal in the Netherlands and the fintech company Payconiq International in Luxembourg.

This acquisition aims to deliver a unified instant payment scheme and platform for Europe.

EPI announced in a July press release that its first service would focus on person-to-person transactions, allowing users to transfer funds within 10 seconds using a phone number, email address, or app-generated QR code, without the need for an IBAN.

This service operates like a direct debit between banks and is available 24/7 at no additional cost.

However, Wero remains a private initiative and cannot replace public money, such as the European Central Bank’s digital euro.

Challenges ahead in competing with US rivals

The urgency to develop an independent European cross-border payment service has intensified in recent years, particularly following the suspension of Visa and Mastercard services in Russia in response to the invasion of Ukraine in 2022.

This situation exposed vulnerabilities in Europe’s reliance on external, non-European payment systems, underscoring the need for greater financial sovereignty.

Wero, with its instant payment capabilities and backing from major European banks, has a solid foundation to challenge US counterparts such as Visa, Mastercard, and PayPal.

However, it may face significant hurdles in achieving this level of competition. To succeed, Wero will need to foster widespread consumer adoption and expand its services into more European markets, Euronews’ market analyst Tina Teng explained.

Achieving this is likely to require time and strategic growth to compete effectively with its American peers.

Martina Weimert, chief executive officer of EPI, stated that it would be “very presumptuous” to label Wero as a challenger, describing the firm as “a kind of startup”.