ECB targets Visa and Mastercard with digital Euro

Card payments in the EU into the hands of U.S. companies

The central bank wants the digital euro to serve as a digital form of cash, holding legal tender status alongside coins and banknotes. It is also aimed at reducing Europe’s heavy dependence on international payment systems, most of which are dominated by US firms.

At present, around two-thirds of all card payments in the euro-zone are handled by international schemes, with many European countries lacking a strong domestic alternative.

Under the new framework, private payment providers would be required to update card readers and payment infrastructure to support the ECB-backed standards once the digital euro becomes legal tender across the 21 eurozone countries.

Unlike current payment standards set by global schemes, which often involve fees for usage, the ECB says the European alternative will be free for users.

ECB Executive Board member Piero Cipollone said to the Financial Times that the goal is to create “a European free alternative” to existing proprietary systems and ensure digital cash can work smoothly with both public and private sector payment solutions.

Current global standards are largely managed by EMVCo, a California-based consortium overseen by six major non-European payment groups including American Express, Discover, JCB, UnionPay, Mastercard and Visa.

Final agreement until early 2027?

The ECB has instead chosen standards developed by the European Card Payment Cooperation, nexo standards and the Berlin Group—systems already in use in parts of Europe. Germany’s Girocard and France’s Carte Bancaire are among the major national schemes already adopting these protocols.

However, the digital euro project still faces political hurdles. While the European Commission and EU governments support the initiative, approval from the European Parliament is still required.

Some banks and payment providers remain cautious, arguing that the digital euro may bring limited added value while potentially weakening private European initiatives trying to challenge Visa and Mastercard’s dominance.

If lawmakers approve the legislation this summer, negotiations with EU member states would follow, with a final agreement expected by late 2026 or early 2027.