A new payment system is on the horizon, changing the rules of the game. Here's an example: an elderly gentleman from Germany sends 10 euros to his colleague in France using his smartphone, and the money arrives instantly.
This wouldn't be worth reporting if these two individuals weren't executives of European banks. Thanks to this real-time transfer, the new payment method has been successfully tested for the first time.
The upcoming payment system is a breakthrough
"Wero" is the name of the system through which Joachim Schmaltz (Association of German Savings Banks) sent money to Yves Tyrode (BPCE, France).
Soon, this will also allow customers in Germany and 15 other EU countries to make fast transfers from their smartphones.
To achieve this, numerous banks have joined forces to form the European Payment Initiative (EPI). From April 2024, it will offer an alternative to payment systems such as PayPal, Mastercard, and Visa.
The first successful instant transfer using "Wero" marks a 'significant success'. 'This was announced on Thursday, December 14, by EPI Managing Director Martina Weimert.
EPI @company_epi réalise avec succès les premières transactions de paiement instantané en Europe avec wero entre des clients @BanquePopulaire et @Caisse_Epargne en France et de la @dsgv en Allemagne.
— Groupe BPCE (@GroupeBPCE) December 14, 2023
Pour en savoir plus ⤵https://t.co/5Tatj75SbG pic.twitter.com/BJj6N9TPjo
EPI is slightly behind, as many customers already have alternatives on their smartphones in the U.S., such as PayPal or Apple Pay.
Nevertheless, the new system has an advantage. With the 'Wero' wallet solution, money is supposed to go directly to a checking or business account through an immediate transfer.
This means that in the future, there will be no need for additional applications. Moreover, instant payments will soon become free. In addition to these new technical capabilities, the digital wallet will offer additional features to customers in Europe in the future.
'Wero' is currently still in the pilot project stage. The new payment system is planned to be introduced in Germany, Belgium, and France in mid-2024, according to Handelsblatt. After that, customers will be able to transfer money instantly using only their phones.
Small shops and businesses will be able to use the wallet by the end of 2024. From 2025, it will also be available for online payments.
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The successful implementation of "Wero" in Europe is a significant step towards improving Life in Germany, as it allows for instant transfers between German and other EU countries. With the upcoming introduction of EPI, customers can expect to make fast and free transactions using their smartphones, which will benefit both small shops and businesses.
