Europe’s Payment Revolution: How National Champions Are Taking on Visa and Mastercard
For decades, Visa and Mastercard have reigned supreme over European payments. But a quiet revolution is underway. A coalition of five national payment giants – Bizum, Bancomat, MB WAY, Vipps MobilePay, and EPI – are joining forces to create a pan-European payment system that could fundamentally reshape how we transact, offering a direct challenge to the established duopoly and potentially saving European consumers billions in fees.
The Rise of the National Champions
This isn’t a ragtag group of startups. These are established players deeply embedded in their respective markets. Spain’s European payments leader, Bizum, boasts over 30.6 million users. Portugal’s MB WAY processes more than 70 million monthly transactions. Italy’s Bancomat handles a staggering 2.7 billion transactions annually. The Nordic countries rely heavily on Vipps MobilePay, with 12.5 million users. And in France, EPI, launched in 2024, is poised to become the national standard. Combined, they represent a formidable force of 130 million users across 13 countries – a market share that demands attention.
A Unified European System: How It Works
The core of this challenge lies in interoperability. Currently, using a mobile payment app in one European country often means it’s useless in another. The alliance aims to solve this with a central interoperability hub, slated for completion in 2026. This hub will allow seamless transactions between different national systems. Imagine a French citizen using their local app to effortlessly pay a friend in Spain via Bizum – just as easily as a domestic transfer. This is the promise of a truly unified European payment experience.
Beyond Convenience: The Push for Sovereignty
The motivation extends beyond mere convenience. There’s a growing desire for payment sovereignty within Europe. As Ángel Nigorra, general director of Bizum, puts it, “Europe has the infrastructure, scale and vision to deliver a sovereign, robust and reliable European alternative in payments.” This sentiment is echoed by Martina Weimert, director general of EPI, who believes European payments sovereignty is “not a vision, but a reality in the making.” The concern stems from the significant fees levied by Visa and Mastercard, which ultimately impact both consumers and merchants. Reducing reliance on these US-based giants could unlock substantial economic benefits for the continent.
The EuroPA Prototype: A Glimpse into the Future
The alliance isn’t starting from scratch. The EuroPA initiative, connecting Spain, Portugal, Italy, and Andorra since March 2025, serves as a successful proof of concept. Remarkably, €6 million has already been transferred through the system in just one year, with minimal marketing. This organic growth demonstrates a clear demand for a European alternative. This initiative also aligns with concerns voiced by Christine Lagarde, who has previously highlighted the need for greater autonomy in European payments.
What Does This Mean for Consumers and Businesses?
The implications are far-reaching. For consumers, it means greater choice, potentially lower fees, and the convenience of using their preferred payment method throughout Europe. For businesses, it could translate to reduced transaction costs and access to a wider customer base. However, the transition won’t be immediate. Person-to-person transfers are expected to be available across the 13 covered countries by 2026, with online and in-store payments following in 2027. The success of the initiative hinges on widespread adoption and seamless integration with existing infrastructure.
The Potential for Innovation and Competition
This new competitive landscape could also spur innovation in the payments sector. We might see the emergence of new features and services tailored to the European market, driven by the unique needs and preferences of local consumers. Furthermore, the pressure on Visa and Mastercard could force them to lower their fees and improve their services to retain market share. The rise of open banking and account-to-account payments could further accelerate this trend, offering even more alternatives to traditional card-based systems. The European Central Bank is actively promoting innovation in the payments space, providing a supportive regulatory environment for these developments.
The challenge to Visa and Mastercard isn’t just about creating a new payment system; it’s about building a more equitable and efficient financial ecosystem for Europe. As this alliance gains momentum, it’s likely to reshape the future of payments, empowering consumers and businesses alike. What impact will this have on fintech innovation across the continent? Share your thoughts in the comments below!
