Europe Seeks Payment Autonomy Amid Geopolitical Risks

Europe is pushing for payment autonomy in response to geopolitical risks.

The European Central Bank (ECB) wants approval of the digital euro, a move aimed at reducing dependence on US-based Visa and Mastercard systems.

According to ECB data, these two companies account for 61% of card payments in the euro area and almost all cross-border card transactions.

ECB President Christine Lagarde has warned that reliance on foreign payment systems leaves Europe exposed to political pressure or sudden disruption.

The digital euro will be an electronic form of currency issued and guaranteed by the ECB, complementing cash and existing banking services.

Negotiations between the European Parliament and member states on the digital euro's operation are in their final phase, with a pilot programme starting in 2027 involving 36 payment service providers.