Wero, a new digital wallet created under the European Payments Initiative (EPI), is poised to become Europe’s first sovereign payment solution, directly competing with established networks like Visa and Mastercard. The platform, which enables cross-border payments, is now operational in Germany, Belgium, and France. It is supported by a coalition of 16 European banks, including BNP Paribas, Deutsche Bank, and the payments processor Worldline.
The EPI, headquartered in Brussels, emphasized that Wero aims to strengthen Europe's financial independence by providing a home-grown alternative to US-based payment networks. The platform is designed to simplify cross-border transactions within Europe, aligning with the broader strategy of creating a unified European financial ecosystem.
Wero’s services focus on real-time person-to-person transactions, allowing users to transfer funds within 10 seconds using a phone number, email address, or a QR code without needing an IBAN. This system operates around the clock with no additional fees, offering a convenient solution for consumers. Wero also provides users with real-time account balance and spending updates, streamlining financial management.
The platform initially launched with Sparkassen and Volksbanken Raiffeisenbanken in Germany and has since expanded to include Deutsche Bank, along with banks in Brussels and France. Future plans include offering services to small businesses in 2025 via QR-coded invoices and in-store payment support by 2026, with features such as "buy now, pay later" also in development.
Wero’s development has been strategically supported by acquisitions of key fintech companies such as iDeal in the Netherlands and Payconiq International in Luxembourg, enabling it to create a unified instant payment network across Europe. However, despite its strong backing and technological innovation, Wero faces significant challenges in competing with entrenched US payment giants like Visa, Mastercard, and PayPal.
Wero’s success will depend on its ability to foster widespread adoption among European consumers and businesses, as well as expanding its footprint to additional markets across the continent. Although Wero offers a promising alternative, EPI’s CEO Martina Weimert acknowledges that it is still a "startup" and not yet positioned to be a full-fledged challenger to the US-dominated market.
The push to develop a European payment network has gained urgency, especially after Visa and Mastercard suspended services in Russia following the invasion of Ukraine in 2022, revealing Europe's vulnerability in relying on external payment systems. Wero's launch represents a significant step toward achieving financial sovereignty, positioning Europe as less dependent on non-European networks.
However, the road ahead is likely to be long and will require substantial growth and consumer buy-in for Wero to fully establish itself as a competitive player in the global payment industry.
