More Wero, less PayPal
Europe must free itself from its digital dependence on the USA in particular. Tanja Müller-Ziegler made this appeal to the audience at Börsen-Zeitung's 23rd Retail Banking Day. The continent is at a turning point, she said, with international tensions increasing the pressure. „The crucial question is no longer whether Europe can develop its own solutions - but whether we now have the strength and political will to implement them,“ said the member of the Board of Management of the National Association of German Cooperative Banks (BVR).
Fragmentation
Non-European providers have a dominant position in Europe, particularly in cross-border payments, with US providers such as PayPal, Visa and Mastercard leading the way. According to the Bundesbank, international card systems process two thirds of all payments in the eurozone. Müller-Ziegler also attributed the fact that Europe has fallen so far behind the USA to fragmentation and bilateral approaches.
She emphasised the risk that these payment services could no longer be usable due to international crises or sanctions. „If payment services fail, the real economy comes to a standstill. If payment flows are controlled, dependencies arise – economically, politically and geopolitically,“ said Müller-Ziegler. In addition, US authorities, for example, could view European citizens' data if they access US infrastructure.
End at the national border
Although Europeans could come up with national solutions such as the Girocard in this country, they usually end at national borders, Müller-Ziegler pointed out. "It is unacceptable for someone to be unable to use their Girocard at a petrol station in Brussels, while US cards work everywhere without any problems. The Europeans would therefore have to make technical, political and regulatory improvements, for example through harmonised technical and regulatory standards.
The European Payments Initiative (EPI) with its payment method Wero also needs to be comprehensively supported and promoted in order to be able to act as a potential alternative to Paypal, Apple Pay, Google Pay and the like. The cooperative banks are also involved in Wero. She expressed her distance from the digital euro, which has been met with scepticism in the financial sector. This could be a building block of European resilience, but should not replace existing systems.
