EU's potential to establish monetary self-determination
In a world where political uncertainties and global dependencies loom large, Europe is taking strides towards securing its payment future. The need for payment sovereignty is no longer a concern solely for experts, but a strategic question for all of Europe.
Recently, a panel discussion at the Payment Exchange 2025 addressed this very issue. Oliver Hommel, CEO of EURO Kartensysteme, and Marcus Mosen, Supervisory Board Chairman at N26, were among the participants. The discussion revolved around Europe's dependence on U.S. payment systems, with Hommel citing instances where the U.S. has used its payment power politically, such as against Venezuela.
The panelists agreed that innovation is needed to make Europe more independent, but opinions differed on the current state of innovation in the industry. Marcus Mosen criticized the pace of innovation in the German banking industry, calling for more speed and courage.
One of the key projects driving this progress is Wero, a Pan-European digital wallet launched in 2024 as part of the European Payments Initiative. Supported by 14 major banks including Deutsche Bank, Wero enables instant, simple, and seamless P2P payments directly from bank accounts using phone numbers. With plans to expand into point-of-sale account-based payments, Wero offers a European alternative to card payments and reduces merchant costs linked to card transaction fees.
Another initiative is the digital euro project, led by the European Central Bank (ECB). The aim is to launch an official digital euro that complements physical cash, unifies payments across the euro area, and enhances privacy, security, and inclusion. The ECB has approved vendors and technical components, emphasizing resilience to fraud and cost reduction for merchants compared to international card payments.
Europe also has its own assets like SEPA, national players like Girocard, and Spanish success stories like Bizum. However, the panelists suggested that these assets may not be enough to create a genuine European payment alternative, leaving Europe potentially as a pawn in global interests.
The digital euro's success, according to the panelists, depends on user-friendly implementation and providing real added value. Another contentious issue discussed was the digital euro, with panelists agreeing that its success hinges on these factors.
The podcast titled "How sovereign is Europe's payment future?" is now available for listening, and a discussion about Europe's payment sovereignty can be joined on LinkedIn. The podcast also touches upon the modernization of payment infrastructure in the Western Balkans, supported by the World Bank, as a means to boost financial access and regional integration.
In summary, Europe is actively progressing towards payment independence with projects like Wero and the digital euro to mitigate risks from political uncertainty and global interdependence while facilitating a more integrated, safer, and cost-effective payment ecosystem. These initiatives reflect the strong drive for an autonomous European payments infrastructure preserving privacy and enhancing economic resilience.
Technology plays a crucial role in Europe's push for payment independence, with projects like Wero and the digital euro being key initiatives. The banking sector, however, needs to innovate at a faster pace, especially in Germany, to meet the demands of a more independent payment system.
