Europe’s $24 Trillion Push for Payment Independence From US Giants

Europe is accelerating its efforts to reduce reliance on US-dominated payment systems like Visa and Mastercard, driven by concerns over data control, strategic vulnerability, and potential geopolitical risks. The move, encompassing initiatives like the WERO digital wallet and the SEPA instant payments law, aims to establish a more sovereign and competitive European payments landscape.

The Scale of US Dominance

Visa and Mastercard collectively process approximately $24 trillion in transactions annually across Europe [European Business Magazine]. In 2023, these two companies handled 4.7 trillion USD in payment volume within the EU [Euronews]. As of 2025, they accounted for 47% of the eurozone’s card payment value [Euronews]. This dominance extends to data flows, with transaction data leaving European jurisdiction every time a card is used [European Business Magazine].

Growing Concerns and Political Momentum

The European Central Bank (ECB) has warned that losing control over payment systems equates to losing control of economic destiny and sovereignty [Euronews]. Increasing tensions between the EU and the US have heightened fears that US payment networks could be used to exert pressure on Europe, or even be suspended entirely, disrupting transactions for 450 million European citizens [Euronews]. This concern was underscored by Visa and Mastercard’s suspension of operations in Russia following the invasion of Ukraine in 2022 [Euronews].

WERO: Europe’s Homegrown Alternative

Launched in 2024 in Germany, WERO, backed by the European Payment Initiative (EPI), is positioned as the first pan-European digital wallet and instant person-to-person (P2P) payments circuit [Euronews]. It allows users to send and receive instant account-to-account payments using mobile numbers, email addresses, or QR codes, bypassing traditional card networks [European Business Magazine]. WERO is expanding to include online commercial payments and aims to be a fully-fledged alternative to US payment networks by 2027 [Euronews].

Broader EU Initiatives

Beyond WERO, the EU is pursuing a multi-pronged strategy to bolster payment sovereignty:

• SEPA Instant Payments: A law requiring eurozone banks to offer instant credit transfers [European Business Magazine].
• TIPS: The TARGET Instant Payment Settlement system, a pan-European infrastructure for settling instant payments in central bank money [European Business Magazine].
• Digital Euro: A proposed central bank digital currency for everyday electronic payments [European Business Magazine].
• European Banking Union: An effort to centralize banking supervision and resolve failing banks without taxpayer bailouts [Euronews].

Challenges and the Path Forward

Despite the progress, challenges remain. Experts emphasize the need for WERO and other European alternatives to be cost-effective, convenient, secure, and offer robust dispute resolution systems [Euronews]. A collaborative approach, integrating public and private sector initiatives, is seen as crucial for success [Euronews]. The EU estimates that single market fragmentation, including in payments, costs the bloc up to €500 billion in annual GDP [European Business Magazine].