A single European card payment system could come

A total of 16 banks in Belgium, France, Germany, Spain and the Netherlands are pushing for the development of a unified, “truly European” card payment system. The initiative also supported by the European Central Bank, after that, the region is expected to have its own alternative by 2022 with MasterCard and Visa card companies dominating the market for the most part.

The European Payments Initiative, or EPI for short its goalto create a new, standard payment system with a card and digital wallet available to customers and merchants. The solution would cover all types of transactions, from purchases in physical stores to online payment and cash withdrawals to peer-to-peer transactions, in addition to existing international payment solutions. Banks joining EPI include BNP Paribas, Deutsche Bank, INg, UniCredit, BBVA, Commerzbank, Santander and Societe Generale, and more payment service providers are expected to join.

Although, as the European Central Bank points out in its communication, the pan-European infrastructures of the integrated European payments market, SEPA (Single Euro Payments Area), have become increasingly secure and efficient in recent years, payment methods remain highly diverse across Europe, whether it’s shopping online or in a traditional store. Although innovative solutions similar to different wallets are widespread in many countries, in many cases they can only be used in that country.

Will you be there?

Péter Janklovics stands-up at SYSADMINDAY!

Will you be there?
Péter Janklovics stands-up at SYSADMINDAY!

The EPI would replace country-specific card schemes with a single card and digital wallet that can be used across Europe and eliminate the current fragmentation. Once the solution builds on SEPA Instant Credt Transfer, you can build on your existing infrastructure. The EPI is scheduled to start as early as 2022, with the initiators setting up a temporary company in Brussels in the coming weeks as a first step in the project.

The need for a similar European payment system according to the initiators of the initiative the crisis situation caused by the coronavirus epidemic is also evidenced by the large increase in the number of online and contactless purchases during the exit restrictions, while cash payments were reduced.