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EU Drops Visa and Mastercard Pay by Bank as Ecommerce Alternative

Illustration showing Pay by Bank as a modern, secure alternative to Visa and Mastercard in an e-commerce checkout environment, powered by European Open Banking

Why the EU Wants to Break Free from Visa and Mastercard

In 2025, the European Central Bank (ECB) officially announced a plan to reduce reliance on foreign payment systems such as Visa, Mastercard, PayPal, and Alipay. ECB President Christine Lagarde stated that Europe can no longer depend on U.S. and Chinese-controlled infrastructure for digital payments.

The Problem with the Current Payment Landscape

According to Lagarde:
"Europe’s digital payment infrastructure is overly dependent on foreign corporations. We need sovereign European solutions."

Challenges with Visa/Mastercard/PayPal dominance:

  • Transaction fees of 2–3% per order
  • Exposure to geopolitical risk and sanctions
  • Lack of European regulatory control

The European Payments Initiative and Wero

To address these concerns, leading European banks have launched the European Payments Initiative (EPI), and with it, the digital wallet Wero — now rolling out in France and Germany.

Goals of Wero:

  • Create a unified, pan-European instant payment system
  • Reduce reliance on non-EU players
  • Offer an alternative for both retail and online commerce

Pay by Bank: A Ready-to-Use Alternative Today

While Wero is still rolling out, one solution is already live — Pay by Bank, powered by Open Banking APIs.

Why Online Stores Are Switching to Pay by Bank

Benefit Description
Lower Fees From 0.5%
No Chargebacks No disputes or refund fraud
Instant Settlement Funds are received within minutes
EU Regulation Compliant Meets PSD2, GDPR, and Open Banking standards
No Card Networks Bank-to-bank transactions with no intermediaries

Cards vs Pay by Bank vs Wero

Feature Visa/Mastercard Pay by Bank Wero (EPI)
Fees 2–3% + flat fee 0.5–1% TBD
Payout Time 2–5 business days Instant TBD
EU Controlled
Open Banking
Availability ✅ Available ✅ Live 🚧 Testing
Platforms like Wallid let you integrate Pay by Bank with Shopify in just a few clicks — no dev team needed.

Final Thoughts

The EU is serious about building a sovereign payment ecosystem, and alternatives like Wero are just the beginning.

But Pay by Bank is already here — empowering online merchants to:
  • Cut transaction costs
  • Speed up their cash flow
  • Stay ahead of regulation
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