Europe's $24T Breakup with Visa and Mastercard Has Begun (europeanbusinessmagazine.com)

Article summary

The European Union is moving away from Visa and Mastercard, with a $24 trillion breakup underway. This shift is driven by the need for a European-based payment system, as the current reliance on US-based companies is seen as a vulnerability. The EU is exploring alternative payment systems, such as Wero, which allows for online payments without the need for cards. This change is expected to reduce the EU's dependence on US-based payment networks.

Main themes

• European payment systems
• Visa and Mastercard
• US-EU financial relations
• Digital payments
• Financial independence

What commenters say

• The EU's move away from Visa and Mastercard is a response to the US's ability to shutdown transactions at will, and a European-based payment system would provide more control and security.
• The use of alternative payment systems like Wero could reduce the need for physical cards and provide a more convenient and secure way to make payments.
• Some argue that the shift away from Visa and Mastercard is a result of the companies' decision to discontinue their debit networks, which has led to a loss of business for them in Europe.
• Others believe that the concept of physical cards is becoming obsolete, and that contactless payments and QR code-based systems are the future of transactions.
• There are concerns that a single point of failure, such as a phone or app, could be a vulnerability in payment systems, and that physical cards provide a useful backup.
• The use of QR code-based systems is seen as a more open and interchangeable standard, allowing any bank to issue funds and making it easier for merchants to accept payments.
• Some argue that the EU's move away from Visa and Mastercard is driven by a desire to reduce the fees associated with these payment networks, and to increase financial independence.
• Others believe that the shift is driven by a desire to increase security and reduce the risk of fraud, as physical cards can be lost or stolen, and contactless payments can be vulnerable to hacking.