July 03, 2024 – The European Payments Initiative (EPI) has unveiled a groundbreaking instant payment system, dubbed ‘wero’, ushering in a new era of seamless transactions across the European Union. Initially, this sovereign payment platform will be accessible to customers of Germany’s Volksbanken and Sparkassen banks, marking a significant step towards financial independence and unity within the region.
Comprising a consortium of 14 European banks and 2 payment service providers, EPI’s mission is to bolster the continent’s financial autonomy by integrating a unified digital payment solution into the mobile applications of its member institutions. This comprehensive approach aims to cater to the needs of both enterprises and individuals across Europe, fostering a harmonized payment landscape.
The wero system revolutionizes the payment experience, enabling consumers to execute both domestic and cross-border transactions within a breathtaking 10 seconds. The process eschews the need for intermediary accounts or the cumbersome 22-digit IBAN identifiers, instead leveraging telephone numbers, personal email addresses, or dynamically generated QR codes for swift and secure transactions.
The rollout of wero is gathering momentum, with Deutsche Bank scheduled to join the fold later this year. Belgium’s KBC Bank is poised to become the first non-German institution to embrace the system, with support expected by the end of July. Meanwhile, France is gearing up for the official launch of wero services in September to October, following successful summer trials.
EPI’s ambitious timeline envisions full adoption across all member banks within a six-month timeframe, underscoring the collective commitment to streamlining payment services for the benefit of all Europeans.
In terms of functionality, wero’s initial offering focuses on facilitating person-to-person money transfers. However, the platform’s capabilities will expand significantly over the coming years, with support for payments to professional individuals and businesses slated for 2025. By 2026, wero anticipates introducing an array of advanced features, including in-store payments at point-of-sale terminals and buy-now-pay-later options, further enhancing its appeal as a comprehensive payment solution.
