The discussion began with Matteo Gamba explaining the stark differences in consumer payment preferences across various international markets. He highlighted that payments are often a crucial aspect of localisation strategies for global businesses. While Anglo-Saxon countries such as the US and the UK are largely card-dominated, with a mix of credit and debit use, continental Europe presents a more fragmented picture. Matteo pointed to the Netherlands, where iDEAL—a direct bank transfer system—is dominant, and Germany, where there is a strong preference for PayPal and open invoice systems over cards. In Asia, many markets have leapfrogged traditional payment methods entirely, instead embracing mobile-first super apps like WeChat Pay. He advised that companies expanding into new markets must offer locally preferred payment methods, as failing to do so could negatively impact conversion rates.
Sophia Furber expanded on this by sharing insights from her research into local European payment methods. She noted the rise of domestic alternatives such as Blik in Poland, Bizum in Spain, iDEAL in the Netherlands, and TWINT in Switzerland—many of which were developed by consortia of local banks. Originally designed for peer-to-peer payments, some of these methods have evolved to support e-commerce transactions. For instance, Amazon’s recent adoption of Bizum in Spain reflects this trend. She also highlighted the gradual evolution of these payment tools into multi-functional financial apps, with TWINT now supporting parking payments and Satispay in Italy exploring features like wealth management. Nevertheless, Sophia stressed that, despite this growing diversity, cards remain dominant in Europe. According to S&P Global’s 2024 Consumer Payments Market Monitor, cards accounted for 63% of digital transactions, with digital wallets at 30% and BNPL at just under 4%. She projected that while card usage would decline slightly by 2029, they would still represent nearly 60% of digital payments.
The conversation then turned to Alexander Burkhard, who presented the case for Wero, the digital wallet being launched under the European Payments Initiative (EPI). Describing it as the first “European-born” digital wallet, Alexander outlined Wero’s ambition to offer a unified account-to-account payment solution across Europe, independent of US and Asian payment giants like Visa, Mastercard, Apple Pay, and Google Pay. Wero aims to provide a scalable alternative by building on instant payment technology, starting with peer-to-peer transfers and expanding into e-commerce, in-store payments, and broader digital services. The phased launch began in 2024 across Belgium, France, and Germany, with over 30 million users enrolled by January. Alexander positioned Wero as not only a payment tool, but a future digital wallet offering added value through loyalty programmes, subscription management, and potentially even digital ID storage.
Graham then explored the broader ambition behind EPI—questioning whether it is intended to challenge established payment giants. Alexander acknowledged this, noting that wallets are rising globally due to their ability to offer more than just payment functionality. He argued that consumers increasingly expect a seamless and multifunctional mobile experience that extends beyond transactions, something existing card-based systems struggle to fully accommodate. He positioned Wero as a forward-looking solution, purpose-built for a digital-first era, capable of integrating services such as travel passes, venue tickets, and IDs alongside payment features.
Sophia provided further context on the political dimension of the initiative. She argued that while the EPI isn’t a direct response to recent political changes in the United States, it does reflect long-standing European concerns about over-reliance on non-European payment systems. She highlighted the rising discourse around “payment sovereignty”, which is gaining traction across the continent, particularly in light of developments in central bank digital currencies (CBDCs). These conversations are being driven by considerations of operational resilience, control over monetary policy, and the need for independence from large, foreign-owned networks. Sophia noted that initial scepticism surrounding EPI has given way to serious interest, with Wero now seen as a credible and important initiative within the European fintech space.
Matteo offered a more cautious perspective, agreeing on the political necessity but expressing doubt about consumer-level value. He observed that most payment activity is still highly localised, with users transacting almost exclusively within national borders. This, he argued, makes local payment methods more appealing due to their integration with local language, culture, and user expectations. Matteo also pointed to the complexity of aligning various banks across Europe to support a unified infrastructure, referencing the slow and fragmented rollout of open banking as an example of such challenges.
In response, Alexander emphasised the long-term benefits of building upon existing structures like SEPA and instant payments, noting that many banks and merchants had already expressed a desire for streamlined, pan-European solutions. He acknowledged that while adoption takes time, instant settlement features—such as receiving funds in seconds rather than days—represent a significant improvement for both consumers and businesses. He concluded by reiterating that customer adoption would ultimately depend on delivering superior user experiences, not just technical solutions.
Matteo echoed this sentiment in his closing thoughts, underscoring that at the end of the day, the consumer experience determines the success of any payment method. Regardless of the infrastructure, whoever provides the most intuitive, secure, and functional features will lead the market. He noted that even wallet providers often rely on existing card rails, and that customer trust, protection, and convenience remain the most critical factors in adoption.
