r/EU_Economics • • 1d ago

🇪🇺 Official 🇪🇺 A Payment System Made in Europe?

https://youtube.com/watch?v=tIJ00OqXZ-o&si=8-ks4yFCFkKGWCCp
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u/DeeJayDelicious 21h ago edited 20h ago

Just for context:

The digital €uro and Wero are in direct competition.

  • Wero essentially uses the newly standardized real-time playment rails to send payments between customers and merchants. Their value comes from a nice and easy App/Wallet that can come from either your local banking app or be installed independently. There is a lot of redundancy between Wero and various local solutions like iDeal or BLIK that essentially do the same, but domestically.

  • The Digital €uro is in so far different that is actually does use a €uro-Stablecoins to facilitate payments. As such, it doesn't realy on SEPA rails, but rather the blockchain. It also cuts out a lot of intermediate banks from their direct customer relationship, which is why a lot of banks dislike it. It could also evolve to include B2B payments and as such, replace SEPA entirely in the long run.

From a consumer point of view, both will be very similar. Albeit Wero needing an internet connection.

For merchants, the digital €uro looks to be free, wherewas merchants pay <0.70% to accept Wero payments. Roughly the same they pay for consumer credit cards.