European Payment System Wero Launches
The European Payments Initiative (EPI), supported by 16 European banks, including Deutsche Bank, Volksbanken and Raiffeisenbanken, and Savings banks Financial Group, has launched the new payment system Wero. This is a significant development in the payment sector, as Wero does not belong to an American company and aims to make payment in Europe more independent.
Not Free from Setbacks
The development of Wero has not been without setbacks. The joint project has experienced a number of issues, including a delay in its launch and the withdrawal of some participating banks. Commerzbank, for example, has dropped out of the project. Despite these challenges, the launch is still set to take place this summer.
What Can Wero Do?
Wero promises to revolutionize European payment transactions. With the system, users can send and receive money quickly and conveniently, without having to deal with account details. All that is required is the recipient’s mobile phone number. Wero will initially only cover a few European countries, including Germany, France, and Belgium.
Features of Wero
Wero offers a range of features that make it an attractive option for users:
- Send and receive money at any time: 24 hours a day, including holidays
- No IBAN required: To send money, the recipient’s mobile number is sufficient
- Available to most bank customers in Germany, France, and Belgium, with other European countries to follow soon
- Lightning transfers: The money reaches the recipient within a few seconds
- Independence from American payment systems such as Visa, Mastercard, Apple Pay, or PayPal
Weaknesses and Challenges
While Wero has the potential to be a game-changer in the payment sector, it is not without its weaknesses and challenges. At launch, money transfers will only be possible within a few European countries, which may limit its appeal. Additionally, the system faces competition from established players such as Klarna and the digital euro.
Discontinuation of Paydirekt
A recent report may not be a good sign for Wero’s success. The German online payment system Paydirekt is to be discontinued soon, despite a merger with Giropay a few years ago. This has raised concerns about the viability of Wero, as some of the same banks involved in Paydirekt are also behind Wero.
What’s Next?
The launch of Wero at the beginning of July 2024 will be an exciting time for the payment sector. The system has the potential to succeed, but whether it will become a major player or be overshadowed by established players remains to be seen. Deutsche Bank plans to join the system at the end of summer 2024, which could boost Wero’s chances of success.
Conclusion
Wero has the potential to revolutionize European payment transactions, but it faces significant challenges and competition in the market. Only time will tell whether the system will succeed and become a major player in the payment sector.
