Potential for European Financial Autonomy through Payment Independence
In the realm of finance and technology, discussions about Europe's payment sovereignty have taken centre stage. At the recent Payment Exchange 2025 event, a panel of experts delved into this strategic question, addressing the challenges and opportunities that lie ahead.
Moderated by Reinhard Höll, Partner at McKinsey & Co, the discussion featured Lars-Thorben Niggehoff, a freelance journalist and founder of the journalism bureau dreimaldrei, Marcus Mosen, Supervisory Board Chairman at N26, and Oliver Hommel, CEO of EURO Kartensysteme.
The panelists highlighted the need for Europe to reduce its dependence on U.S. and global payment systems, advocating for faster, more secure, and locally controlled infrastructures that cater to European consumers, merchants, and banks.
One of the key developments discussed was the European Payments Initiative (EPI) and Wero digital wallet, launched in 2024. Supported by 14 major banks, including Deutsche Bank, Wero enables instant payments with phone numbers and direct bank account debits, reducing card payment costs for merchants and providing a simple, native alternative to global schemes.
Another significant development is the SEPA 2.0 reform, effective in 2025, which introduces enhanced standards aimed at making European payments faster, safer, and more efficient. It supports innovations like request-to-pay and embedded payments, enabling better liquidity management and more precise claims settlement, fostering greater independence from global card networks and payment providers.
The EU Instant Payments Regulation, mandating instant payments by late 2025, and systems like TARGET Instant Payment Settlement (TIPS) have scaled to billions of transactions, enabling real-time settlement across Europe’s payments ecosystem.
However, the panelists also raised concerns about the potential vulnerability of these payment infrastructures to geopolitical interests. Oliver Hommel cited instances where the U.S. used its payment power politically, such as against Venezuela, and warned of the risks when critical infrastructures are not under European control.
The panelists agreed on the need for innovation to make Europe more independent, but their views differed on the pace of innovation. Marcus Mosen criticized the speed in the German banking industry, while Oliver Hommel pointed to projects like Wero as driving progress.
Despite fragmentation in Europe's payments market, ongoing efforts emphasize increasing interoperability among national schemes and digital wallet solutions. However, a fully unified pan-European system is projected to require technical, commercial, and governance harmonization over the next decade.
Regulations are tightening to ensure data privacy, security, and compliance within payments, while adopting mobile-first and modular payment infrastructures to support pan-European digital payments that reduce reliance on U.S.-based card networks and wallets.
Together, these initiatives represent a multi-layered strategy combining policy, technology, and collaboration among European financial institutions to build a made-in-Europe payments ecosystem that counters U.S. and global dependency by enhancing local control, cost efficiency, and consumer trust.
As Europe navigates these complexities, the panelists emphasized the importance of speed, courage, and European cooperation to create a genuine European payment alternative that safeguards Europe's interests in an increasingly interconnected world.
- The panelists at the Payment Exchange 2025 event, including Oliver Hommel, Luke Wulfshheimer, and Marcus Mosen, agreed on the importance of Europe developing a stronger local control over its payments infrastructure, as exemplified by initiatives like the European Payments Initiative (EPI) and Wero digital wallet.
- Speaking at the Payment Exchange 2025 event, Lars-Thorben Niggehoff, a freelance journalist and founder of dreimaldrei, Marcus Mosen, Supervisory Board Chairman at N26, and Oliver Hommel, CEO of EURO Kartensysteme, advocated for a localized and independent European payments ecosystem, leveraging technology and collaboration with other European financial institutions.
