Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Europe's planned rival to Visa and Mastercard appeals for public funding

Published 11/16/2021, 11:06 AM
Updated 11/16/2021, 01:10 PM
© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium May 5, 2021. REUTERS/Yves Herman/File Photo

© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium May 5, 2021. REUTERS/Yves Herman/File Photo

By Huw Jones

LONDON (Reuters) - A planned pan-European payments network backed by 22 banks to compete with U.S. duo Mastercard (NYSE:MA) and Visa (NYSE:V) appealed on Tuesday for public money, saying its private backers were not prepared to stump up all the cash needed.

The European Payments Initiative (EPI) was launched last year and is seeking to get more banks and other players in payments on board by December to finalise plans to start rolling out its instant and card payments network.

"Public funding would be nice," EPI Chief Executive Martina Weimert told an event held by the European Payments Institutions Federation. "Let's not hide it - it's going to be a massive investment. It's expensive."

Retailers say they are not ready to pay for it, while banks and other EPI shareholders "can carry only so much", Weimert said, without giving details on the investment needed.

Deutsche Bank (DE:DBKGn), UniCredit, BNP Paribas (OTC:BNPQY), ING, Societe Generale (OTC:SCGLY) and Sabadell are among the 22 banks from seven EU countries, including France, Germany and Spain who are backing the venture.

The European Union has been keen to achieve strategic autonomy in financial services, such as by cutting reliance on U.S. Mastercard and Visa for cross-border card payments. It's unclear whether that will extend to financial backing for EPI.

Weimert said EPI was now in a "critical phase" of decision making over the next few weeks.

© Reuters. FILE PHOTO: European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium May 5, 2021. REUTERS/Yves Herman/File Photo

It will build a new system and largely replace a plethora of national systems to reduce fragmentation and overlaps in payments, she said, aiming to launch in 2022 peer-to-peer transactions based on instant payments, followed by e-commerce.

"It is a major shift so it will take time. Anybody who tells you it's an easy call and let's do it quick and dirty, well it's not really looking to transform the European ecosystem," Weimert added.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.