Why does the EU want to reduce reliance on Visa and Mastercard?

To decrease dependence on US companies and enhance European financial sovereignty, as Visa and Mastercard handle two-thirds of card payments in the euro area.

How will the digital euro affect Visa and Mastercard?

It could reduce their market share in Europe, potentially impacting their revenues, but the effect depends on adoption speed and regulation.

When will the digital euro be launched?

No launch date has been set, but implementation is expected to take several years due to technical and regulatory challenges.

EU Bets on Digital Euro to Cut Dependence on US Payment Systems

The European Union believes a digital euro is the answer to cutting its addiction to US payment systems such as Visa, Mastercard, Apple Pay, and Google Pay, as the bloc seeks to favor European firms. According to the ECB, nearly two-thirds of card payments in the euro area are handled by non-European companies, mostly Visa and Mastercard.

June 23, 2026

2 min read

Source: AFP

Key Numbers

card payments share

two-thirds

The European Union is pushing forward with plans to launch a digital euro, aiming to reduce its reliance on dominant US payment systems like Visa (V), Mastercard (MA), Apple Pay, and Google Pay. This move is part of the bloc's broader effort to prioritize European companies.

Details of the Initiative

According to the European Central Bank, nearly two-thirds of card payments in the euro area are processed by non-European companies, predominantly Visa and Mastercard. The EU sees the digital euro as a local alternative that could decrease dependence on these foreign entities.

Context

This initiative comes amid growing concerns over US technological dominance in the financial sector. Europe is also seeking to strengthen its strategic autonomy in digital payments, especially after the COVID-19 pandemic highlighted the importance of digital infrastructure.

What It Means for Investors

If the digital euro is successfully launched, it could reduce Visa and Mastercard's market share in Europe, potentially impacting their revenues. However, regulatory and technical challenges remain, and implementation is expected to take several years.

Frequently Asked Questions

The digital euro is a central bank digital currency (CBDC) issued by the European Central Bank, aiming to provide a secure and free digital alternative for cash and electronic payments.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.