The European Central Bank (ECB) has reaffirmed its ambition to reduce reliance on non-European payment systems—most notably the networks operated by Visa and Mastercard—in a new position paper outlining a roadmap for the future of retail payments in the EU.
U.S.-based rails still process more than 60% of card transactions in Europe, with 13 of the 21 eurozone member states relying exclusively on international card schemes. The ECB’s strategy aims to strengthen Europe’s strategic autonomy and resilience by reducing dependence on a handful of non-European providers, while also shielding the payments ecosystem from geopolitical risks and cyber threats.
Building Their Own Rails
The roadmap reflects a broader policy shift towards enhancing the EU’s financial sovereignty and fostering competition in a market long dominated by global card networks. The EU has already announced plans to develop its own payment network, similar to Brazil’s Pix, with account-to-account (A2A) payments at its core. The initiative is currently targeting a 2030 launch.
In parallel, a UK consortium has announced plans to build a domestic payment rail to rival Mastercard and Visa, also aiming to be operational by 2030. The two payment giants currently handle roughly 95% of all card transactions in the UK.
“Given the geopolitical climate, Europe is nervous about being dependent on U.S.-based companies,” said Don Apgar, Director of Merchant Payments at Javelin Strategy & Research. “The EU had a wakeup call about relations with the U.S. Not that they are actively looking to kick Visa and Mastercard to the curb, but if something should go sideways, the EU doesn’t want to be left with no payment network.”
Relying on A2A
The ECB’s paper places renewed emphasis on A2A payments as a cornerstone of Europe’s future payments infrastructure. Also known as pay-by-bank, A2A payments allow funds to move directly between bank accounts, reducing transaction costs and supporting real-time settlement.
Perhaps most importantly, A2A payments could help diversify payment options, enhancing consumer choice while improving the overall reliance and reliability of the payments system. The immediate challenge will be to establish them as a credible and widely adopted option for European consumers.
“It’s not that Europe is in love with A2A payments,” Apgar said. “A2A payments in the EU are about at the same levels as they are here in the U.S.”
