What: The European Payments Initiative introduces Wero, a bank-backed digital payment solution designed to standardise and streamline peer-to-peer transfers across Europe while reducing reliance on international payment networks.

Why it is important: The launch marks a strategic move to establish European payment sovereignty, combining the trust of traditional banks with modern digital capabilities to create a potentially transformative solution for retailers and consumers alike.

The European Payments Initiative's Wero represents a significant advancement in digital payment infrastructure, backed by a consortium of 14 major banks. Launched across France, Germany, and Belgium in late 2024, the platform has rapidly accumulated 30 million users, demonstrating strong initial adoption. The service enables peer-to-peer transfers in under ten seconds, leveraging open banking technology to facilitate direct bank-to-bank transfers, thereby eliminating traditional payment network fees of up to 0.5%.

The initiative has gained additional momentum through a strategic partnership with PPRO, a global provider of local payment infrastructure that collaborates with major players like PayPal, Mastercard, and Citi. This alliance, following PPRO's recent EUR 85 million fundraising, will enable Wero to expand its e-commerce capabilities and merchant network. While the project has strong backing in its initial markets, its success depends on expanding beyond current boundaries, particularly after several banks from Italy, Spain, Poland, and Finland withdrew from the original initiative. The platform's future plans include merchant payments and expansion into Luxembourg and the Netherlands.

IADS Notes: The launch of Wero comes at a pivotal moment in European payments evolution. The March 2024 Visa-Mastercard settlement of USD 30 billion over swipe fees underscores merchants' concerns about transaction costs, making Wero's bank-backed solution particularly appealing . This timing aligns with broader market shifts, as January 2025 data shows mobile payments now dominating 70% of global sales , indicating strong consumer readiness for digital wallet adoption. The initiative addresses a crucial gap left by declining local payment schemes , while major retailers' openness to new payment solutions is evidenced by El Corte Inglés's March 2024 integration of Alipay+ . With 30 million users already enrolled, Wero's rapid adoption suggests it could indeed reshape Europe's payment landscape, though success will depend on expanding beyond its initial markets and overcoming established consumer payment preferences.

EPI/ Wero partners with UK-based fintech PPRO, Finyear

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