The European Payments Initiative: What You Need to Know

Surprising fact: most payment transactions in Europe still flow via Visa and Mastercard, and billions of euros leave the region each year to these U.S.-based companies.

The European Payments Initiative is a bank-led effort to build a homegrown alternative to global card networks. Backed by 16 major banks and PSPs, it aims to scale fast by uniting local platforms like Bizum, iDEAL, Payconiq and Blik.

Wero, launched in 2024, moved beyond peer-to-peer use when processors began routing live eCommerce checkouts. Nuvei’s November 19, 2025 announcement confirmed real checkout availability for merchants.

This article explains why the project matters to U.S. readers, how Wero’s account-to-account model runs on SEPA Instant Credit Transfer and TIPS rails, and what the shift could mean for merchant costs, conversion and market dynamics through 2027.

Key Takeaways

• EPI seeks a unified, sovereign payment option to reduce reliance on international card networks.
• Wero is no longer a pilot: processors and merchants are live with eCommerce checkouts.
• Adoption taps existing local systems to scale quickly across the region.
• Payment rails (SEPA Instant, TIPS) enable account-to-account flows that can cut fees and speed settlement.
• Processors play a key role in merchant acceptance and real-world rollout.

What’s happening now with Europe’s push for a Visa and Mastercard alternative

Wero’s leap into merchant checkout flows is shifting the project from peer-to-peer convenience into a real commerce competitor. On Nov 19, 2025 Nuvei announced that eCommerce merchants can process Wero, and early adopters like CamperDays are already live.

Wero’s expansion from P2P into eCommerce and beyond

That move matters because consumer methods only become true alternatives when mainstream processors and recognizable merchants accept them at checkout. Wero runs on instant account-to-account rails (SEPA Instant Credit Transfer), giving fast settlement and lower intermediaries.

Signals of adoption: Wero reports 46M+ users and 100M+ P2P transactions totaling over €5B. Those metrics create an installed base that can convert to commerce use.

The roadmap aims beyond person-to-person: short-term plans include payments to professionals (P2Pro), online and mobile purchases, and later point-of-sale. Early merchant tests usually mean controlled rollouts, consumer education, and gradual scaling across countries and verticals.

• Latest development: live in eCommerce checkouts via major processors.
• Why it matters: checkout acceptance is the litmus test for any card alternative.
• Near-term expansion: P2Pro, mobile, web, then in-store.

Why now? Fragmentation, sovereignty concerns, and cost and experience pressures are accelerating efforts to build a viable, homegrown solution that leverages local platforms instead of starting from scratch.

European payments sovereignty and why EPI is gaining urgency

Dependence on non‑local card networks has become a strategic concern for finance leaders across the euro area. Nearly two‑thirds of Eurozone card transactions flow through Visa and Mastercard, and 13 EU countries have no national alternative.

Europe’s reliance on international card networks

That concentration leaves merchants and banks exposed to pricing power and system changes outside their control. If core rails are run by non‑regional firms, resilience and bargaining power can weaken in a crisis.

Cash decline and the growing importance of digital transactions

With cash use shrinking, everyday commerce is now digital. More transactions move online or by wallet, so who controls the rails affects fees, speed, and consumer access.

Geopolitics and concerns about payments leverage

Former central bankers warned that interdependence can become leverage and control in tense moments. That framing pushed bankers and policy makers to back a pan‑regional approach.

• Dependency metric: almost two‑thirds market share for two global card firms.
• Practical risk: fewer cash transactions mean digital rails matter more for daily life.
• Policy angle: resilience and continuity drive urgency from the european central bank and european banks.

Rather than a patchwork of national solutions, the goal is a unified scheme that can coexist with local platforms and reduce dependence on global card chains. This market‑led, bank‑driven initiative aims to strengthen control while working with existing national players.

European payments initiative: what it is and who is behind it

Major banks and payment firms joined forces to build a pan‑region retail payment scheme with wide reach.

What it is: the european payments initiative is an alliance of banks and payment service providers formed to create a unified retail payment scheme. The ECB welcomed 16 founding banks and partners that bring distribution and trust.

An alliance backed by banks and financial services firms

Large banks and financial services companies supply the network, tech integration, and access to everyday banking apps. That practical power lets a wallet or scheme appear inside apps users already trust.

Goal: a single, cross‑border payment solution for consumers and merchants

The stated end state is one european payment solution that works for P2P, eCommerce, in‑store purchases, and cash withdrawals across borders.

• Interoperability: not national silos but cross‑border reach.
• Governance: shared rules, brand trust, and accountability.
• Leadership: Martina Weimert highlights the need to stitch national assets into a cross‑border offer.

ECB support and the policy backdrop shaping the payments initiative

Officials emphasize that SEPA solved settlement, but not the fractured checkout experience across member states. The european central bank has repeatedly noted that shared rails did not eliminate national silos at the point of sale.

How the ECB frames fragmentation across the Single Euro Payments Area

The central bank diagnosis is simple: infrastructure exists, yet consumers and merchants face different apps, national card schemes, and country‑only wallets.

Policy logic: fragmentation invites global platforms to fill gaps, which can deepen non‑local control over retail flows.

Key objectives the Eurosystem expects a pan-European scheme to meet

• Pan‑European reach: cover the euro area, with an ambition to scale to the whole EU.
• User friendliness: low friction at checkout for consumers and merchants.
• Cost efficiency: reduce merchant fees and simplify reconciliation.
• Safety & security: align with existing prudential rules and fraud controls.
• European identity & governance: transparent rules and local accountability.
• Global ambition: design to compete internationally over time.

Fabio Panetta has urged a phased approach: euro area first, then the broader union. The upshot is clear — any new scheme must be usable, trusted, and scale without recreating core rails. EPI attempts this by building on instant transfer rails rather than reinventing settlement.

How Wero works as a digital wallet built on instant payment rails

Wero repackages bank-to-bank transfers into a consumer-facing wallet that completes checkouts in seconds.

Account-to-account payments via SEPA Instant Credit Transfer

Wero routes transactions as direct account credits using SEPA Instant Credit Transfer. Funds move from buyer bank to merchant bank without card networks or interchange-driven flows.

What TARGET Instant Payment Settlement (TIPS) enables

TIPS provides settlement at the Eurosystem level. That standardizes cross-border execution and helps scale instant payment clearing across banks and PSPs.

Use cases EPI is targeting across retail payments

Target use cases include eCommerce checkout, payments to professionals, mobile commerce and eventual point‑of‑sale acceptance. Roadmap items also cover loyalty and subscription services.

Security, customer experience, and governance expectations

Security and consistent customer experience are non-negotiable. Strong fraud controls, clear liability rules and transparent governance keep the scheme accountable and trusted.

• Merchant upside: faster settlement, simpler reconciliation, and fewer intermediaries can cut some cost components.
• User upside: confirmation in seconds and a bank‑based wallet that reduces checkout friction.

Leveraging local payment platforms to scale across Europe

Using trusted national platforms lets the effort move quickly while keeping local habits intact.

How national champions fit the strategy

The plan is to integrate winners like Bizum, iDEAL, Payconiq, and Blik as distribution layers. They bring user familiarity, bank links, and merchant trust.

That approach reduces rollout friction and lets a pan‑regional scheme gain instant reach without replacing every domestic tool.

Reducing fragmentation without starting from scratch

Practical work focuses on harmonizing standards, UX expectations, and merchant onboarding rules. Local interfaces stay familiar while back‑end flows align.

Cross-border interoperability is the unlock: consumers and merchants need the same method to work reliably when they travel or expand into new countries.

• Logic: reuse distribution channels to speed adoption.
• Risk: aligning governance, dispute rules, and fraud controls across many schemes.
• Benefit: sovereignty and resilience are preserved while the market gains unified use.

Latest merchant adoption news: Nuvei begins processing Wero transactions

On Nov. 19, 2025 Nuvei said its eCommerce merchants have started processing Wero in live checkouts. Nuvei had previously completed a test transaction and is now among the first processors running production flows.

What “live in eCommerce checkouts” signals for market readiness

Live checkout means the integration moved beyond pilots into full production. It implies monitoring, error handling, and real consumer transactions instead of controlled trials.

Why processors matter for faster merchant rollout

Processors accelerate adoption because one integration exposes many merchants to a new payment solution. They bundle onboarding, risk controls, and reporting so merchants avoid direct bank connections.

Early merchant example and what it implies for wider acceptance

CamperDays is an early adopter that shows how a merchant can validate the user experience and find friction points fast. Positive commercial results can convince more merchants to enable the solution.

• Nuvei highlights speed, security, and flexibility in switching on the method.
• EPI leadership frames Wero as cost-efficient and sovereignty‑focused.
• Processors standardize rollout, reducing barriers for mid-market and enterprise merchants.

What Wero could change for merchants, payments costs, and conversion

A shift to account-to-account wallet flows could change how merchants think about fees and conversion. Nuvei says adding Wero expands consumer choice, lowers processing costs, and speeds settlement for live eCommerce merchants.

Checkout choice and conversion

Offering a familiar local payment method can cut abandonment. Statista finds nearly 60% of consumers are more likely to finish a purchase when their preferred method appears.

Baymard reports that missing options cause 9%+ of cart drop-offs. Deloitte suggests a broader mix can lift conversion by up to 20%.

Settlement speed, cash flow, and fewer intermediaries

Instant A2A settlement shortens the lag between sale and cleared funds. That helps high-volume merchants and tight-margin sellers manage working capital.

Fewer intermediaries can reduce some fee layers and simplify reconciliation, though final cost impacts depend on merchant contracts and processing models.

How account-to-account reshapes processing economics

Operational gains include faster reconciliation and fewer chargeback-style workflows under scheme rules. Those efficiencies can be as valuable as lower headline fees.

Value-added services on the roadmap

• Loyalty integrations: tie rewards to purchases and increase repeat business.
• Subscription tools: manage recurring transactions with clearer settlement rules.
• Analytics and reconciliation: simplify back-office work and reduce manual costs.

What it means for consumers and user experience across Europe

For everyday shoppers, the biggest promise is one familiar payment flow that behaves the same in multiple countries. That single wallet approach could remove the need to juggle different national apps when traveling or buying from foreign merchants.

One wallet experience across countries and channels

Embedding the wallet inside bank apps eases onboarding. Consumers keep existing logins and authentication patterns, so the user experience stays familiar.

Adoption signals: users and transaction volume milestones

Tens of millions of users and over 100M P2P transactions worth more than €5B show real demand. Those metrics give credibility when the product expands from friend transfers to merchant checkout.

Moving to commerce means consumers expect clear refund paths, predictable acceptance, and consistent user flows. Realizing the cross‑border vision depends on merchant rollout, processor support, and seeing the wallet presented alongside trusted methods.

• Consumer promise: one wallet that works across countries.
• Reduced friction: bank embedding lowers signup steps.
• Proof points: large user base and volume of transactions.

Competition and coexistence: EPI, cards, and the digital euro debate

Market dynamics now point toward coexistence: new account-based wallets will sit alongside cards and national schemes rather than immediately replace them.

How Wero stacks up against a retail digital euro

The european payments initiative positions Wero as a private-sector solution that covers many retail use cases without creating new central bank liabilities.

EPI argues a retail digital euro may duplicate functions users already get from bank-based wallets. The european central bank still sees a digital euro as a tool for autonomy and security, so public and private paths will be debated side by side.

Where cards and domestic schemes remain strong

Visa Mastercard networks handle nearly two-thirds of card traffic, which sets a high bar for any rival. Domestic schemes keep deep local trust but often lack cross-border reach.

• Cards dominate merchant acceptance today.
• Local schemes offer familiarity and fast uptake at home.
• Wero aims to add cross-border convenience without displacing existing rails.

Martina Weimert has emphasized that geopolitical risks raised urgency for banks and merchants. That momentum makes coexistence—and competitive parity—the likeliest near-term outcome.

What to watch next: rollout timeline, countries, and in-store payments

Stakeholders will watch how quickly Wero moves from three launch markets to a wider regional footprint. The year ahead will test the scheme’s ability to convert P2P scale into merchant reach.

Expansion beyond Belgium, France, and Germany

Belgium, France, and Germany are the first core countries. Wider adoption requires adding markets that bring volume and cross-border travel.

Key question: which countries are prioritized next, and how fast will merchant coverage grow?

The path to online and point-of-sale payments

Nuvei’s live eCommerce processing shows the way from P2P to online checkout. In‑store rollout needs terminal integrations, unified UX, and refund and dispute workflows.

Merchants need consistent flows across channels so consumers see the same payment solution on web and at the till.

Milestones through 2027 and adoption drivers

Growth to 2027 will depend on processor availability, bank distribution, merchant incentives, and a clear value proposition versus cards.

• Processor integrations that expose many merchants quickly.
• Local platform partnerships (Bizum, iDEAL, Payconiq, Blik) to reduce learning curves.
• Incentives for merchants to enable the new payment solution.

Conclusion

Nuvei’s Nov. 19, 2025 production rollout proves Wero has crossed into live commerce. This milestone makes the european payments initiative tangible: a bank‑backed wallet on SEPA Instant rails that already serves 46M+ users and 100M+ P2P transfers.

The payments initiative responds to real urgency—heavy reliance on non‑local card chains, falling cash use, and pressure on sovereignty from european banks and regulators.

For merchants and consumers, Wero promises instant account‑to‑account payment, faster settlement, and the potential for lower fees and simpler reconciliation. Leveraging local platforms like Bizum, iDEAL, Payconiq and Blik is the practical path to scale without breaking national habits.

Watch for more processor announcements, wider merchant activation beyond early adopters, and measurable progress toward full online and in‑store coverage through 2027.