Ximedes’ Joris Portegies Zwart of Ximedes discusses European payment independence and the potential of Wero.
The global payments landscape is in constant motion. For decades, card networks like Visa and Mastercard have dominated the ecosystem, creating a robust and reliable, albeit complex, system for transactions worldwide. Now, a new contender, Wero, is emerging from the European Payments Initiative, prompting a critical question: is Wero the obvious option to use on a terminal instead of the established giants?
The answer is a bit more complex than a ‘yes’ or ‘no’. This is not a simple question of replacement but a conversation about evolution, independence, and the future of commerce in Europe. To explore this multifaceted topic, we sat down with Joris Portegies Zwart from Ximedes, to get his perspective on the shifting dynamics of digital payments.
The Case for a European Alternative
The discussion around Wero is intrinsically linked to the concept of European economic sovereignty. For years, the continent has relied on non-European entities to process a significant portion of its transactions. Framing the conversation around "European independence" provides a more constructive lens through which to view Wero's potential. It’s not about displacing the incumbents but about building a parallel system that aligns with Europe’s strategic goals.
Let’s get one thing straight: The established payment networks are marvels of engineering. Their global interoperability and reliability are the result of decades of development. This long history also creates inertia.
"The existing payment systems are remarkably robust, but their extensive layers and numerous stakeholders make changes incredibly slow," Portegies Zwart notes. These systems are built on a complex technical legacy, making swift innovation a significant challenge.
This is where Wero presents an opportunity. As a new initiative, it offers a "green field" approach. It can be built from the ground up, free from the constraints of legacy infrastructure. This allows for the integration of modern technology and a more streamlined architecture, potentially leading to a more agile and efficient payment solution for card-present transactions.
Innovation and the Incumbents
It would be a mistake to assume the established players are standing still. Companies like Visa and Mastercard are constantly innovating within their own frameworks. We see this in the continuous rollout of new features and services, such as the integration of bank cards with public transportation systems, creating seamless travel experiences.
These companies invest heavily in research and development to enhance their offerings and maintain their competitive edge. Their innovation might be incremental, bound by the complexities of their existing networks, but it is constant and impactful. The challenge for any new system is not just to introduce novel features but to match the scale, security, and trust that these giants have built over many years.
The Road Ahead
The conversation about Wero versus Visa and Mastercard is more than a technical debate. It is a strategic discussion about Europe's place in the global financial system. The emergence of Wero offers a chance to build a payment infrastructure that is modern, efficient, and aligned with European values of sovereignty and innovation.
The path forward requires careful navigation. The robustness and global reach of the existing networks cannot be understated. A successful transition will involve fostering an environment where new and old systems can coexist and even complement each other.
By focusing on a constructive narrative of independence and embracing a balanced perspective, the European payments industry can evolve in a way that benefits consumers, merchants, and the broader economy. The journey is just beginning, but the direction points toward a more diverse and dynamic future.
A Balanced Path Forward
The introduction of Wero is not a zero-sum game. The goal is not to declare a winner between the old and the new but to foster a more diverse and resilient payment ecosystem. The industry benefits from healthy competition and a variety of solutions that cater to different needs.
"Companies like Visa and Mastercard continuously innovate within their established frameworks. The future of payments in Europe will likely not be a complete overhaul but a gradual integration of new systems alongside the old," Portegies Zwart states.
