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.
Explore how UK Shopify stores are reacting to EU’s payment evolution: