European payment app targets Visa, Mastercard dominance with retail payments push

ISTANBUL

A European mobile payment solution backed by major EU banks is expanding into retail transactions, challenging the dominance of US giants Visa and Mastercard, local media reported on Wednesday.

European Payments Initiative’s brand Wero, launched in late 2024 for peer-to-peer transfers, will soon allow users in France to pay for online purchases via QR codes, with in-store payments and contactless options planned in the coming years, the French news broadcaster BFM TV reported.

Developed by 16 European banks, including France’s BNP Paribas, BPCE, Credit Agricole and Societe Generale, Wero currently enables near-instant transfers between individuals using a phone number, QR code or email address.

The consortium now aims to enter the retail sector, where card payments remain largely controlled by Visa and Mastercard.

“Today, at merchants, you cannot pay with an instant transfer. Tomorrow, with us, you will be able to do it in an extremely simple way, with your phone,” Martina Weimert, CEO of the European Payments Initiative (EPI), said.

According to Weimert, 51 million users in France will soon be able to select a Wero button at checkout on participating websites, scan a QR code and confirm payment on their phones within seconds, without entering card details.

Wero plans to extend the system to physical stores, first via QR codes and later through contactless technology by 2027.

Weimert said the solution would be “significantly cheaper than Visa and Mastercard” for merchants.

While interchange fees are capped by the EU at 0.2% for debit cards and 0.3% for credit cards, additional network fees charged by US payment schemes, estimated at between 0.05% and 0.15% per transaction, are paid directly to those companies.

The initiative comes amid growing debate in Europe over reliance on US-based payment systems such as Visa, Mastercard and Apple Pay, with policymakers raising concerns about economic sovereignty.

Discussions are also ongoing with the European Central Bank over its proposed retail digital euro. Weimert said talks on a possible public-private partnership are continuing but not yet finalized.

French tax authorities are considering allowing Wero payments for taxes by 2028.