Europe Urges Reduced Reliance on US Payment Giants Visa & Mastercard
Europe is urgently seeking to reduce its reliance on US-based payment systems like Visa and Mastercard, amid growing concerns over potential geopolitical leverage and data security. The push for a more independent financial infrastructure comes as policymakers grapple with the implications of increasing transatlantic tensions and the vulnerabilities exposed by recent international sanctions.
Martina Weimert, CEO of the European Payments Initiative (EPI), a consortium of 16 European banks and financial services companies, emphasized the urgency of the situation. “We are heavily dependent on international decisions for payments,” she told the Financial Times. “Yes, we have good national assets like local card payment schemes… but we have nothing cross-border. If we say independence is so important, and we all know it’s a matter of time… we need urgent action.”
According to the European Central Bank (ECB), Visa and Mastercard processed approximately 61% of card transactions in the Eurozone in 2022. Thirteen member states lack a national alternative to the American providers, and even where local schemes exist, their usage is declining. This dependence is particularly concerning as cashless transactions become increasingly prevalent across the continent.
European officials are increasingly worried that the dominance of American payment companies could be exploited as a point of pressure in the event of a serious deterioration in transatlantic relations. This concern is part of a broader recognition that Europe has become overly reliant on US companies in several critical sectors. Recently, the head of Belgian cybersecurity warned that Europe has “lost the internet” due to the dominance of American tech giants.
“Deep integration has created dependencies that can be abused when not all partners are allies,” warned Mario Draghi, former President of the ECB, in a recent speech. “What was once considered a source of mutual restraint has become a source of leverage, and control.”
The EPI launched Wero, a European alternative to Apple Pay, in 2024. The digital wallet currently boasts 48.5 million users in Belgium, France, and Germany, with plans to expand to online and in-store payments by 2027. Weimert noted that banks and merchants are largely aware of the need to build a cross-border European network, but that the “geopolitical context” has elevated the issue to a priority.
The ECB has also highlighted the difficulties faced by previous private sector initiatives in achieving scale, with a spokesperson citing “the struggle of participants to agree on common standards.” The central bank is promoting the – a public initiative for digital payments in the Eurozone – aimed at bolstering the bloc’s monetary sovereignty.
Piero Cipollone, a member of the ECB’s Executive Board, underscored its importance: “As European citizens, we want to avoid a situation where Europe is overly dependent on payment systems that are not in our hands.”
However, the digital euro project is dividing policymakers, with some creditors lobbying against it, arguing that it will undermine the efforts of the private sector. A vote in the European Parliament later this year is expected to be closely contested. Merchants in the Eurozone will be required to accept digital euros in stores and online by .
Weimert cautioned that the digital euro could be delayed if geopolitical tensions worsen. “The problem is that it will come in a few years, perhaps after the end of Donald Trump’s term. I think our time is running out,” she added.
The concerns extend beyond potential sanctions or political pressure. ECB President Christine Lagarde has warned that virtually all European card and mobile payments currently flow through non-European infrastructure controlled by US companies, meaning European consumer data is sent to the United States with every transaction. This raises data privacy and security concerns for European authorities.
The drive for a European alternative echoes previous efforts to achieve strategic autonomy in other key sectors, such as artificial intelligence and cloud computing. As with those initiatives, the challenge lies in overcoming fragmentation and fostering collaboration among member states to create a viable, competitive alternative to established US dominance. The success of the EPI and the digital euro will be crucial in determining whether Europe can break free from its reliance on American payment giants and secure its financial future.