European payment system Wero launches – model “Twint”
Published: Tuesday, Jul 2nd 2024, 07:40
Updated At: Wednesday, Jul 3rd 2024, 01:59
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The new European payment system Wero from the European Payments Initiative (EPI) has been launched. It is modeled on the Swiss "Twint".
In contrast to a conventional bank transfer, Wero users do not need a 22-digit account number (IBAN) for the recipient. Instead, they can use a cell phone number or e-mail address to transfer money in real time. Real-time means that the money is credited to the recipient's account within ten seconds. It should also be possible to pay online with Wero from 2025 and in retail stores from 2026.
The Belgian bank KBC is also involved in the Wero launch. Other partner banks from the Netherlands and France are set to follow. However, Deutsche Bank, its subsidiary Postbank and ING Bank are not yet on board. However, experts expect them to launch this year. Commerzbank, DZ-Bank and neo-banks such as N26 are still on the sidelines.
Against Paypal & Co.
Wero is operated by the European Payments Initiative (EPI), a joint venture of 14 banks and two payment companies. The partners want to compete against large US financial groups such as Mastercard, Visa and PayPal. The aim is also to stop the advance of Apple Pay and Google Pay. One model is the smartphone payment solution Twint from Switzerland, which is very popular in this country.
"Wero will strengthen European sovereignty in payment transactions," said Joachim Schmalzl, member of the Management Board of the German Savings Banks Association (DSGV) and Chairman of the Supervisory Board of EPI. "Until now, we have not had our own common payment procedure in Europe."
European payment procedure
Even strong national procedures such as the Girocard in Germany or the Carte Bancaire in France are dependent on non-European providers for cross-border payments, emphasized Schmalzl. "Wero will end this dependency sustainably and in the long term by offering a European alternative and thus also keeping the added value in the area of payment transactions within Europe."
Customers of the savings banks and cooperative banks do not need to install a new app on their smartphone to try out Wero, but can activate the function in their banking app. Anyone who not only wants to send money via Wero, but also receive it, must also enter a mobile phone number or email address in the banking app.
©Keystone/SDA
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