European officials are urgently seeking to reduce reliance on American payment companies like Visa and Mastercard, amid concerns that U.S. Market dominance could be weaponized in the event of deteriorating transatlantic relations. The push for greater financial independence comes as geopolitical tensions rise and European leaders reassess vulnerabilities in critical infrastructure.
“We are heavily reliant on international decisions for payments,” said Martina Weimert, CEO of the European Payments Initiative (EPI), a consortium of 16 European banks and financial services companies. “Yes, we have excellent national assets like local card payment schemes… but we have nothing cross-border. If we say independence is so important, and we all know it’s a matter of time… we need urgent action,” she added.
According to the European Central Bank (ECB), Visa and Mastercard processed nearly two-thirds of card transactions in the Eurozone in 2022. Thirteen member states lack a national alternative to the American providers. Even where local schemes exist, their usage is declining.
As cash usage diminishes, European officials are increasingly worried that the power of American payment companies could be leveraged to exert pressure in the event of a serious breakdown in relations. This is one of several critical areas where Europeans fear the bloc has become overly dependent on U.S. Firms. Recently, the head of Belgian cybersecurity warned that Europe has “lost the internet” due to the dominance of American tech giants.
“Deep integration has created dependencies that can be abused when not all partners are allies,” warned Mario Draghi, former president of the ECB, in a recent speech. “What was once considered a source of mutual restraint has become a source of leverage and control.”
The EPI, whose members include BNP Paribas and Deutsche Bank, launched a European alternative to Apple Pay called Wero in 2024. The digital payment scheme currently claims 48.5 million users in Belgium, France, and Germany, with plans to expand to online and in-store payments by 2027.
Weimert noted that banks and merchants largely recognize the need to build a cross-border European network, but “the geopolitical context” has made the issue a priority.
The ECB has pointed out that past private sector initiatives have struggled to scale, with a spokesperson citing “difficulties for participants to agree on common standards.” The central bank is promoting a digital euro – a public initiative for digital payments in the Eurozone, aimed at strengthening the bloc’s monetary sovereignty.
Piero Cipollone, a member of the ECB’s executive board, emphasized its importance: “As European citizens, we want to avoid a situation where Europe is overly dependent on payment systems that are not in our hands.”
However, the project is dividing policymakers, with some lenders lobbying against it, arguing it will undermine the efforts of the private sector. A vote in the European Parliament later this year is expected to be closely contested. Merchants in the Eurozone will be required to accept digital euros in stores and online by 2029.
Weimert cautioned, however, that the digital euro could be delayed if geopolitical tensions worsen. “The problem is that it will reach in a few years, maybe after the end of Donald Trump’s term. I think we are running out of time,” she added.
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