Wero set to become Europe's first unified payment solution

Wero, a new digital wallet launched under the European Payments Initiative (EPI), is now operational in Germany, Belgium, and France, enabling cross-border payments across Western Europe.

Supported by 16 European banks and two acquirers, including BNP Paribas SA, Deutsche Bank AG, and Worldline AG, it aims to become the first Pan-European payment solution for the Single Market, aligning with the banking sector's strategy for unity.

EPI described itself as "a European-grown player committed to offering a sovereign payment solution for all consumers on the continent" in a press release from Brussels.

EPI Chairman, Dr Joachim Schmalzl, stated: "The launch of Wero marks an important step towards enhancing Europe's financial independence. Further functionalities will follow, establishing Wero as a central solution for all transactions.

"Our goal is to sustainably build this innovative solution, paving the way for a secure and efficient digital payment future in Europe."

Wero services

In October 2023, the European Payments Initiative (EPI) acquired the e-commerce payment network iDeal in the Netherlands and the fintech company Payconiq International in Luxembourg.

This acquisition aims to deliver a unified instant payment scheme and platform for Europe.

EPI announced in a July press release that its first service would focus on person-to-person transactions, allowing users to transfer funds within 10 seconds using a phone number, email address, or app-generated QR code, without the need for an IBAN.

This service operates like a direct debit between banks and is available 24/7 at no additional cost.

Wero also provides users with a complete overview of their account balance and spending in real time, enabling secure and convenient payment management.

Initially launched with German Sparkassen and Volksbanken Raiffeisenbanken, it has since expanded to Deutsche Bank and is now available in Brussels and France.

Payment services for small businesses will be introduced via online invoices using QR codes in 2025, followed by support for in-store payments in 2026, along with features such as "buy now, pay later" and other tailored services.

However, Wero remains a private initiative and cannot replace public money, such as the European Central Bank's digital euro.

Challenges ahead in competing with US rivals

The urgency to develop an independent European cross-border payment service has intensified in recent years, particularly following the suspension of Visa and Mastercard services in Russia in response to the invasion of Ukraine in 2022.

This situation exposed vulnerabilities in Europe's reliance on external, non-European payment systems, underscoring the need for greater financial sovereignty.

Wero, with its instant payment capabilities and backing from major European banks, has a solid foundation to challenge US counterparts such as Visa, Mastercard, and PayPal.

However, it may face significant hurdles in achieving this level of competition. To succeed, Wero will need to foster widespread consumer adoption and expand its services into more European markets.

Achieving this is likely to require time and strategic growth to compete effectively with its American peers.

Martina Weimert, Chief Executive Officer of EPI, stated that it would be "very presumptuous" to label Wero as a challenger, describing the firm as "a kind of startup".