European payment giants form alliance to challenge Visa and Mastercard dominance

Five major European mobile payment providers have formed a strategic alliance to establish a sovereign payment alternative to the dominant Visa and Mastercard networks. The coalition comprises Bizum from Spain, Bancomat from Italy, MB WAY from Portugal, Vipps MobilePay from the Nordic countries, and Wero from France. This coordinated effort seeks to unify national payment ecosystems, ensuring that transaction data remains within European jurisdiction and does not transit through US servers.

The initiative is built around the creation of a central interoperability hub, which will be managed by a common entity established by the partners in the first half of 2026. This technical infrastructure is designed to allow disparate national systems to communicate seamlessly, enabling users to conduct cross-border transactions with the same ease as domestic payments. For instance, a user in France using Wero will be able to transfer funds to a contact in Spain using Bizum without altering their existing banking habits.

Currently, the alliance represents a significant market presence, covering 130 million users across 13 countries. The broader coalition aims to eventually encompass 72 per cent of the population in the European Union and Norway. The project leverages existing national champions rather than developing entirely new systems from scratch, aiming to provide a robust and scalable alternative to the long-standing American hegemony in the payment sector.

The rollout of services will be phased. Peer-to-peer transfers are scheduled to become available across the entire network in 2026, with online and in-store payment capabilities following in 2027. This timeline reflects the complexity of achieving cross-border interoperability, and while the deployment is structured, delays remain a possibility given the technical challenges involved.

A prototype of this alliance, known as EuroPA, has been operational since March 2025, connecting Spain, Portugal, Italy, and Andorra. In its first year of operation, the prototype facilitated six million euros in transactions without significant promotional campaigns. This early activity serves as a precursor to the wider network, addressing concerns over financial sovereignty that have been highlighted by European leaders, including Christine Lagarde, regarding dependence on extra-continental giants.