Visa, mastercard, paypal: their future in Europe is now uncertain
Visa, mastercard, paypal: Europe wants to regain control © Shutershock
Christine Lagarde did not chew her words. Guest of Pat Kenny Show, the president of the European Central Bank launched a clear appeal: Europe must get out of its dependence on payment giants as a visa, Mastercard, Paypal or Alipay. A “Walk towards independence” which, according to her, is as necessary as it is ambitious.
ECB: Christine Lagarde pushes for a European platform against Paypal, Alipay and others
Today, the majority of digital transactions in Europe transit through controlled infrastructure from the United States or China. A situation deemed worrying by Lagarde, who sees a risk for the economic sovereignty of the old continent. “We need a European offer”she insists, pointing to a glaring absence of a credible local alternative in a nevertheless strategic sector.
Paypal is also targeted. © Shutershock
But beyond this technological sovereignty, Lagarde weaves a close link between this ambition and the larger project of economic integration. The development of the Union of Capital Markets (UMC), in gestation for years, could play a driving role. By fluidifying cross -border investments, by facilitating access to financing for companies, and by strengthening the effectiveness of household savings, this capital union would strengthen the base of the monetary union … and, ultimately, would prepare the field for a real budgetary union.
Visa, Mastercard, Paypal and Alipay are controlled by foreign powers. It is time for Europe to offer its own solution.
Figures circulate: up to 3,000 billion euros of annual added value according to certain projections, more cautious on the side of official parliamentary studies which advance a potential of 2,800 billion by 2032.
But between vision and reality, the path is strewn with pitfalls. Building a European payment system capable of competing with American and Chinese behemoths involves colossal investments. The margins are lower in Europe due to the ceilings on interchange commissions, which slows down attractiveness for private actors. And even if the technology follows, it is still necessary to convince consumers, traders, and especially banks, to abandon their well-established habits.
In addition, are the technical requirements: security, fight against fraud, cross -border compatibility … None of this is improvising.
But Lagarde, pragmatic, traces a line of conduct: the financial independence of Europe will neither go through speeches nor through soft compromises. It will go through action – and above all, through a real collective choice.
