European payments groups join forces to take on US giants

European payment heavyweights are uniting to build a unified cross-border payment network, aiming to break the dominance of Visa and Mastercard. For retailers and operators, this signifies a major shift toward account-to-account (A2A) payments that bypass traditional card rails. This alliance includes big names like Bizum, Wero, and Vipps MobilePay. They want to make it as easy for a customer to pay in a different country as it is at their local shop using a mobile wallet. For your business, this could eventually mean lower transaction fees compared to standard credit card processing. These systems typically settle faster and cost less because they move money directly from the bank account to the merchant. While this specific news is centered in Europe, it signals a global trend where alternative payment methods are no longer 'alternative'—they are becoming the standard. Operators should watch for how these systems integrate with Buy Now, Pay Later (BNPL) providers, as unified payment rails often lead to more streamlined financing options at the point of sale. If you have international customers or follow payment trends to negotiate better rates with your current processor, this move is a clear sign that the 'card-only' era is under heavy fire.

Source: Finextra — Lending

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