EC-backed Mastercard and Visa rival seeks funding

The European Payments Initiative (EPI), a European Commission-backed initiative to create a pan-European payments network that can rival Visa and Mastercard, has appealed for public funding.

The EPI said its private backers were not prepared to provide all the cash it needed according to sources reported by Reuters.

The solution aims to become “a new standard in payments for European consumers and merchants across all types of retail transactions including in-store, online, cash withdrawal, and peer-to-peer.”

The EPI has said its objective is to supersede the “fragmented landscape” it claims currently exists in the European payments space.

The proposed initiative, launched in June 2020, is backed by 31 European banks and credit institutions in Belgium, France, Germany, the Netherlands, and Spain.

These include: BBVA, BNP Paribas, Groupe BPCE, CaixaBank, Commerzbank, Crédit Agricole, Crédit Mutuel, Deutsche Bank, Deutscher Sparkassen- und Giroverband, DZ Bank, ING, KBC Group, La Banque Postale, Banco Santander, Société Générale, and UniCredit.

The future governance of the Brussels-based organisation is still under finalisation.

EPI chief executive Martina Weimert said "public funding would be nice" at an event held by the European Payments Institutions Federation reported by Reuters.

The executive said: “Let’s not hide it - it's going to be a massive investment. It's expensive."

Weimart also told the news agency that retailers have said they are not willing to fund the new initiative, and that banks and other EPI shareholders "can carry only so much".

Weimert said the EPI was in a "critical phase" at the event and that it aims to launch peer-to-peer transactions based on instant payments in 2022.

    Share Story:

Recent Stories

Meet Evelyn, your Economic Sanctions/PEP/Adverse Media Alert Adjudication Analyst
Meet Evelyn, an Economic Sanctions/PEP/Adverse Media Alert Adjudication Analyst, who uses native AI/ML capabilities to automate the Customer/PEP screening and Negative News screening alert adjudication processes for leading BFS organizations with greater speed, accuracy, and consistency than human analysts.

New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.