When people talk about Europe lagging behind the United States or China, Giorgio Andreoli, who will be speaking this Monday at the Luxembourg Chamber of commerce at the invitation of the ABBL to take part in the EPC Community Conference on developments in payments in Europe, dismisses the idea out of hand: “We have achieved something of a miracle with the Sepa area. Today, in 41 countries, you can freely transfer money, pay a bill, a utility bill, a salary or make a bank transfer wherever you are. That’s 41 different sets of legislation. The 27 Member States of the EU share a common framework, but Sepa also relies on national legislation. This is something we should be proud of as Europeans.”
Over the past two years, five countries have thus joined Sepa: Albania, Montenegro, North Macedonia, Serbia and Moldova. Three further applications are in the pipeline – from Ukraine, Kosovo and Bosnia – whilst Georgia has officially submitted its application, which is currently on hold for political reasons.
Beyond Sepa, payments are rapidly gaining ground. The director highlights these figures: “Instant payments account for more than 35% of all transfers. In 2025, we exceeded 10 billion transactions, and instant payments grew by more than 70% year-on-year. They are becoming the new norm in Europe, and we are very pleased with this!” He even believes that Europe sets the standard in certain areas. “We are well ahead of the United States when it comes to account-to-account payments and instant payments.”
Whilst the United States is stepping up its efforts on stablecoins and China on the digital yuan, can Europe really set the rules of the game? Giorgio Andreoli puts things into perspective: “Has Europe really ever set the rules? Since the Second World War, we have been operating within an economic system largely dominated by the United States. Today, they are investing heavily in stablecoins and, to a certain extent, in crypto-assets.”
According to him, three models coexist. In the United States, the approach is largely driven by the private sector, with limited intervention from the Federal Reserve. China, meanwhile, combines strong state control with the power of giants such as Alipay and Tencent, whilst developing the digital yuan, the first major central bank digital currency. Europe, finally, favours a more regulated approach, based on a robust legal framework and public investment in digital infrastructure, at the cost of higher compliance costs for banks and payment service providers.
In his view, these two aspects should not be seen as mutually exclusive. “China is interesting because it combines strong public initiative with a powerful private sector. The two are complementary. I do not believe that a purely state-led initiative can, on its own, drive innovation or guarantee strategic autonomy.” It is precisely this approach that the EPC advocates. “We believe in a public-private partnership. It is probably the best way to shape the future of European payments.”
High-performance railways, but uses that lie beyond Europe’s reach
Despite the quality of its infrastructure, Europe is still struggling to establish its own payment solutions in consumers’ everyday lives. Transactions remain largely dominated by US players such as Visa, Mastercard, Apple Pay, Google Pay and PayPal.
According to Giorgio Andreoli, this dependence is primarily due to the lack of a genuine pan-European alternative. Several countries, such as France, Italy and Germany, have efficient domestic card payment systems. However, these remain largely confined to their national markets.
According to the director, only eight or nine countries in the eurozone still have a domestic card scheme, including France, Italy and Germany. For all other European merchants, international networks remain, for want of a better alternative, the default option. “If a retailer wants to accept a payment method used worldwide, international schemes remain, for the time being, the simplest and often the only solution,” he acknowledges. However, this situation could change with the development of instant point-of-sale payments. “There will be new initiatives that will offer retailers more choice and boost competition.”
Wero: the attempt to conquer Europe
Rolled out gradually across several countries, the solution spearheaded by the European Payments Initiative (EPI) is intended to be a European alternative to the major international networks. According to Giorgio Andreoli, “it is still too early to talk of commercial success”. He believes the initiative has already achieved an initial objective: “Wero has succeeded in putting instant payments back at the heart of the European debate.”
The ambition goes far beyond transfers between individuals. Ultimately, the solution should enable users to pay in shops, online or even manage recurring payments. But building a payment system for the general public remains a particularly complex undertaking. “Introducing point-of-sale payments is extremely difficult, as it requires building what we call a ‘two-sided network’.” The solution must win over both consumers and retailers simultaneously in order to reach critical mass.
“We need to offer sufficiently attractive value to both sides of the market. It’s much more complex than developing a peer-to-peer payment network, and it requires more time and investment.” However, Giorgio Andreoli does not see Wero as a replacement for existing solutions. “In the world of payments, new methods rarely replace the old ones. They complement them.” The cheque is an exception to this rule.
“Wero must find its own market niche; it will certainly help to establish more independent and autonomous European payment systems.” The trend extends beyond the EPI initiative alone: similar projects for instant account-to-account payments at the point of sale are also being developed in Spain, Portugal, Italy and other European countries.
This competition is also shifting towards new payment methods. “We’ll be spoilt for choice!” says Giorgio Andreoli enthusiastically.
Smartwatches, number plate recognition, QR codes, digital wallet apps such as Apple Pay or Google Pay, or those offered by banks: the range of options is growing. The director also points out that Apple’s decision to open up the iPhone’s NFC chips – effective from March 2024 in Europe – should make it easier for banks to launch their own wallet apps.
“Added to this is the entry into force of eIDAS 2. Member States will be required to offer European digital identity wallets, which will also be capable of integrating payment services. ‘This will be a further alternative.’”
Electronic payments can be ‘militarised’ – this is a clear signal that Europe must become more independent and self-reliant.
Behind the commercial stakes lies the issue of sovereignty. Recent geopolitical crises and financial sanctions have served as a reminder that payment infrastructures can become levers of power. “Electronic payments, like other elements, can in some cases be ‘militarised’. This sends a clear signal: Europe must become more independent and self-reliant,” emphasises Giorgio Andreoli.
In his view, “today, Sepa is the only common, autonomous and independent infrastructure at European level”. And “it is precisely for this reason that initiatives such as the EPI are considered strategic, hence the importance of developing European instant payment schemes at the point of sale”.
Europe remains dependent on foreign players for a large proportion of its day-to-day payments. Wero, and in the longer term the digital euro, are seen as ways of reducing this dependence. “It would be useful to have, within the next five years, genuinely European, robust alternatives that serve the interests of citizens and businesses.”
Stablecoins: limited use in Europe
When asked about the future of stablecoins in payments, Giorgio Andreoli is categorical: “Stablecoins will not be adopted for retail payments. I cannot see why a European citizen, or even a business, would want to use them for retail payments in Europe. We already have a very mature infrastructure, based mainly on cards and, eventually, on instant payments.” On the other hand, “the situation is quite different outside Europe. In some countries with unstable currencies, they can provide protection against inflation and facilitate cross-border payments. Their main use is therefore for individuals and businesses outside Europe.”
He also points out that the initial appeal of these assets was partly due to the lack of a regulatory framework.
“Once they are subject to a regulatory framework comparable to that of other financial instruments, much of their advantage will disappear.” This is a view widely shared amongst industry stakeholders and within the EPC, he explains, whilst making it clear that he is not speaking on its official behalf.
The real challenge is no longer to build new railway lines. It is to ensure that Europeans finally want to use them.
According to the director of the EPC, Europe no longer needs to prove its ability to build efficient payment infrastructures. SEPA and the development of instant payments are proof of this. The challenge now lies elsewhere: in usage.
From Wero to the digital euro and future digital identity wallets, initiatives are multiplying. But their coexistence could also pose a problem, according to Giorgio Andreoli: “If these initiatives diverge, it will be a huge waste of money and effort.” Because the real challenge is no longer about building new tracks. It is about ensuring that Europeans finally want to use them.
Europe, he believes, is not short of regulation. But it must strike the right balance. “In some cases, regulation has been very effective, for example with PSD2 for strong customer authentication or Sepa. But it can also become too prescriptive.” He acknowledges that “in recent years, there has been a tendency to over-regulate certain areas”. The regulator’s role should be to set objectives, not to dictate the means. “The regulator must say ‘what to do’, not ‘how to do it’. Too much rigidity can stifle innovation, especially in a rapidly evolving sector; whenever regulation focuses on the policy level, that is the right level at which to act.”
“The next regulatory project is, of course, the Payment Services Regulation (PSR), which will build on PSD2. The PSR and PSD3 will introduce significant changes, particularly in the fight against fraud.” The division of liability between users and service providers in the event of fraud is one of the key issues, as is the flow of information between stakeholders. “This will enable a more effective organisation of the fight against fraud in Europe by facilitating the exchange of information between banks and service providers.” “For the EPC, this development paves the way for more structured cooperation at European level,” he explains. Payment regulation, far from being set in stone, continues to evolve to respond to new usage patterns and the many security challenges.
