Europe launches payment network to rival Visa and Mastercard

Europe has launched a new payment network, the European Network for Payments — an alliance of major banks and local payment services from several EU countries meant to reduce the continent's dependence on the American systems Visa and Mastercard. The new organisation's headquarters will be based in Madrid.

Who created the new network

Among the network's founders are the European Payments Initiative (EPI) with its Wero app, Italy's Bancomat, Spain's Bizum, Portugal's SIBS-MB WAY and the Nordic Vipps MobilePay. EPI chief Martina Weimertová said the project “strengthens Europe's strategic autonomy in payments” while offering users a system built “by Europeans, for Europeans.”

How the system will work

This is not about creating a single app that every European would have to download: national services such as Bizum or Bancomat will stay unchanged, and the new network will simply link them through a shared “translator” hub. For example, a Spaniard will be able to pay in a shop in France using the Bizum app they already know — the hub will verify their identity behind the scenes and send the payment order straight to their Spanish bank. The rollout will be gradual: cross-border transfers between people will go live first, followed later by payments in online stores and at regular points of sale.

Why Europe needs its own payment system

Projects like this are meant to reduce Europe's dependence on Visa and Mastercard — partly out of concern that US President Donald Trump could restrict access to American payment infrastructure. Today these two companies handle about two-thirds of card payments in the EU. European Central Bank President Christine Lagarde spoke last year about the need for Europe's own solution: “When it comes to processing payments, we depend on American and sometimes Chinese networks. We need a European solution, because we want to be sovereign at home.”

What Czech banks think

In Czechia the reception so far is cautious. Air Bank, which runs the Cvak payment system, notes that European solutions are currently aimed mainly at eurozone countries: “Czechia has its own specifics in this area that need to be taken into account. In the future we don't rule out joining, if it makes sense for our clients and the Czech payments market,” said bank spokesman Michal Kuzmiak. Česká spořitelna spokesman Filip Hrubý says what will matter is whether the new network catches on with customers and merchants and whether it offers advantages over existing systems; so far the bank sees no clear benefit for Czech customers. Raiffeisenbank, for its part, intends to focus more on domestic payments than on cross-border euro transfers.

The new network complements the European Central Bank's plan to introduce a digital euro — a kind of online wallet that would be guaranteed by the bank but run by private companies, including banks. A pilot version is planned to launch in the middle of next year, with the ECB considering a full rollout starting in 2029.

Around Prague, based on reporting by novinky.cz