Europe Warns of Dangerous Dependence on Visa and Mastercard

The European Union must rapidly reduce its dependence on American payment systems Visa and Mastercard and develop its own cross-border cashless payment solutions, according to Martina Weimert, chief executive of the European Payments Initiative.

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Paying for groceries with a card

In an interview with The Financial Times, Weimert highlighted Europe's technological and institutional reliance on external actors, stressing that the current market structure creates long-term risks for the region.

Structural Dependence and Strategic Vulnerabilities

Visa and Mastercard dominate card payments across the eurozone in a systemic manner. Available data shows that the two companies account for roughly two-thirds of all card transactions within the currency bloc.

At the same time, thirteen EU member states lack national card systems capable of replacing or even complementing American platforms. As a result, key elements of Europe's payment infrastructure remain under the control of companies operating under the jurisdiction and legal framework of another country.

Amid rising geopolitical tensions and strained transatlantic relations, this dependence increasingly appears as a strategic vulnerability. Control over payment flows and processing capabilities can serve not only commercial purposes but also function as an instrument of political or economic pressure.

The issue grows more critical as cash usage declines and digital payments accelerate, making the resilience and autonomy of payment infrastructure a core component of economic security.

Limits of National Systems and the Wero Project

Existing national payment systems within the EU fail to address the problem fully. Most operate primarily within domestic markets and lack comprehensive cross-border compatibility, preventing them from serving as a union-wide alternative to American systems.

The Wero project, launched by the European Payments Initiative as a digital payment platform, currently operates in only a limited number of countries. Its expansion across the entire EU is not expected before 2027, underscoring the complexity and length of the process.

Digital Euro and the Question of Financial Sovereignty

Concerns over external control of financial infrastructure also resonate among European institutions. Former European Central Bank president Mario Draghi has previously warned that economic interdependence increasingly turns into a source of leverage and control.

In this context, payment systems are no longer viewed merely as technical services but as strategic infrastructure comparable in importance to energy or telecommunications.

Parallel to these efforts, the European Central Bank continues to promote the digital euro, positioning it as a tool to strengthen the EU's financial sovereignty. A central bank digital currency could provide a basic payment function independent of foreign private platforms.

However, the timeline for introducing the digital euro remains under debate. Parts of the banking sector fear that the initiative could undermine private projects and reshape the balance of power within the payments market.

The development of national and supranational payment systems carries strategic importance for several reasons. These systems enhance sovereignty and control over critical infrastructure, support economic resilience by fostering competition and lowering costs, and create a foundation for technological innovation tailored to local regulatory and social needs.

They also enable closer integration of payment services with state platforms, including tax, social, and digital identification systems, reinforcing their role in long-term economic development.