New European payment system Wero launched
In the European Payments Initiative (EPI), 16 European banks are trying to build a counterweight to PayPal, Mastercard, and Visa. However, not all banks are on board at the start of the EPI system.
The new European payment system Wero of the European Payments Initiative (EPI) has started. Initially, the majority of German Sparkassen and Volks- and Raiffeisen banks are participating in Wero mobile transactions from one phone to another.
Users of Wero do not need a 22-digit IBAN number (IBAN) of the recipient for a transfer like in a regular transfer. Instead, one can use a mobile phone number or an email address for real-time money transfer. Real-time means that the money is written off within ten seconds on the recipient's or the recipient's account. From 2025, one will be able to pay online with Wero, and from 2026 in retail.
German Bank Joins Later
The Belgian bank KBC is also on board at the start. Other partner banks from the Netherlands and France are expected to follow. However, Deutsche Bank and its subsidiary Postbank, as well as ING-Bank, are not yet on board. Experts expect a start for them still this year. On the other hand, Commerzbank and neo-banks like N26 are not participating in EPI and Wero.
Wero is operated by the European Payments Initiative (EPI), a joint venture of 14 banks and two payment companies. The partners want to challenge large US financial conglomerates like Mastercard, Visa, and Paypal. Apple Pay and Google Pay's advancement is also to be stopped. A role model is the mobile payment solution Twint from Switzerland, which is very popular in the Alpine Republic.
"Wero will strengthen European sovereignty in payment transactions," said Joachim Schmalzl, Managing Director in the Sparkassenverband DSGV and Chairman of the Supervisory Board of EPI. "So far, in Europe, we have had no common payment procedure."
European Payment Procedure
Even strong national procedures like the Girocard in Germany or the Carte Bancaire in France are dependent on external European providers for cross-border transactions, Schmalzl emphasized. "Wero will sustainably and long-term end this dependency by offering a European alternative and thus also keeping value creation in the payment transaction sector within Europe."
Customers of Sparkassen and cooperative banks do not need to install a new app on their smartphone to test Wero but can activate the function in their banking app. Anyone who wants to send and receive money via Wero in addition must also deposit a mobile phone number or email address in the banking app.
- Consumer organizations have expressed concerns about the lack of transparency in mobile payment services like Wero, urging the European Payments Initiative (EPI) to conduct thorough tests to ensure consumer protection.
- Many advisors recommend using credit cards instead of mobile payment apps like Wero for certain transactions, citing the additional fraud protection and reward points offered by credit cards.
- Some consumers prefer using mobile payment services like PayPal or Apple Pay over traditional credit card transactions on their smartphones, seeking ease and convenience in their daily financial activities.
- The introduction of Wero as a mobile payment service in retail stores in 2026 has sparked discussions among consumer centers, with concerns about cross-platform compatibility and user-friendly interfaces.
- Banks involved in the European Payments Initiative (EPI) like KBC, Deutsche Bank, and ING-Bank will need to integrate their apps with the Wero system to offer mobile payment services to their customers.
- The success of Wero in the European market will depend on its ability to compete with established mobile payment services like PayPal, Apple Pay, and Google Pay, as well as regional alternatives like Twint.
