Square Management Belgium’s Post

The “Wallet War” has multiple stakes that go beyond the question of “who” will be the first pan-European operator. It's a battle between card payments (non-European schemes, but with a remuneration model favorable to issuing banks) and SEPA-based A2A payments (with acquisition fees more favorable to merchants). It's also a battle between QR code and NFC. Until now, NFC has always been associated exclusively with card payments, but there is no technical impossibility of initiating an A2A payment using NFC, but rather blocks put in place by mobile platform operators. European regulations (DMA, PSD etc.) should gradually remove these obstacles. For its part, the QR code has already demonstrated its practicality and interoperability (thanks to the QR Code EPC), even if its use has yet to become established in certain markets (in France, for example, but not exclusively). Finally, the wallet battle will be fought in two very distinct areas: remote payments (E-commerce) and face-to-face payments (PoS). Two fields with different dynamics and specific constraints. The leader will not necessarily be the same in each case.

By 2025, banking apps in France could support QR code payments for merchants without traditional card acceptance. Within 3 to 4 years, a European alternative to Apple Pay, Google Pay, and Samsung Pay may emerge through Wero, a digital wallet backed by major banks like BNP Paribas and Societe Generale. This shift is part of a push for European payment sovereignty, driven by the Digital Markets Act (DMA) that compels Apple to open the NFC capabilities on iPhones to banks, enabling contactless payments beyond their own. At a glance: - 2025: Wero to enable online payments with a "Pay with Wero" button, eliminating manual card entry - 2026: Wero to introduce in-store payments using a QR code system, similar to WeChat Pay and Alipay - The scheme is supported by major European banks, and already live in France and Germany - and Belgium is not far behind The idea here is to give European consumers more control over their data, lessen reliance on U.S. tech giants and reduce fees for banks. While Apple Pay remains a popular choice, Wero could offer a compelling alternative, with features like loyalty card integration and a focus on local data security. #Payments #Fintech #BankingInnovation #ApplePay

A new Research and Markets report forecasts the global market for mobile wallets to reach $668.1 billion by 2030, up from $244 billion in 2023. Significant factors for this growth include loyalty programs, rewards, and discounts as well as the adoption of QR code payments. #mobilewallets #mobilepayments #qrcodepayments #digitalwallets #digitalpayments

🔔 The Digital Payment Barometer 2024 is released 🔔 Find out more about the latest trends on #Belgianpaymenthabits, from contactless payment to mobile payment through cryptocurrencies. 📊 According to the latest #DigitalPaymentBarometer, an Ipsos study conducted by the Vrije Universiteit Brussel on behalf of Febelfin, Bancontact Payconiq Company, Mastercard, Visa and Worldline, we observe that: 💻 82 % of Belgians prefer digital payments; 📱 49 % of Belgians are diving into mobile payments, with young people aged 16-24 leading the charge; 💳 82 % are used to pay contactless with their bank card; 🛒 87 % of Belgians make online purchases, mainly with a debit card, bank or payment app & credit card; 🪙 20 % of Belgians own cryptocurrencies, going up to 52% among 16-24 year olds. Read the full press release 👉 https://bit.ly/3RK4xY8

paydirekt GmbH the German initiative launched in 2015 as Europe’s answer to PayPal is shutting down. The project has been overtaken by the European Payments Initiative (EPI), formed four years ago to combat the encroaching dominance of American-based payment rivals like Visa and Apple Pay. The move marks another step toward EPI establishing itself as the dominant European online payment system. EPI has announced that its goal is to build a unified payment system to be used across Europe. Its key offering, a digital wallet, is currently being rolled out to support account-to-account instant P2P and consumer-to-business payments, as well as online, mobile, and point-of-sale payments in the near future. Read more: https://ow.ly/IxKq50Sjb6b #payments #EU #paymentsystem

EPI Company is launching its Instant Payment solution (Wero) across Europe. 🌍 "Wero aims to provide consumers with an alternative to Visa and Mastercard cards" 🌍 “Visa and Mastercard being so big, they have in their hands a lot of market control power,” says Martina Weimert, CEO of European Payments Initiative (EPI) 🌍 Martina Weimert added in the report that Wero is designed to “offer European players and consumers a European choice.” 🌎 Officially, Visa and Mastercard both welcome this new player, with Michael Miebach, CEO of Mastercard saying they welcome "the entrance into the market of another solution", and Charlotte Hogg, Head of Visa in Europe, stating that “the competitive landscape in Europe has never been richer". 🌍 EPI on their side affirm they have much bigger plans that P2P payment, and that you'll soon be able to use Wero for in-store and online payments. No doubt that the cost of payment acceptance will be a key driver for merchants' adoption. #payment #paymentmethods #futureofpayment #paymentcost PYMNTS EuroCommerce

The digital payments space is evolving, and with it, our understanding of fin tech's role in our daily lives. 💳 With the PSR and the FCA estimating over half of UK adults now use digital wallets 📲 the regulators have launched a significant inquiry into the impact and scope of digital wallets like Apple Pay, Google Pay and PayPal. Areas of focus will be how to enhance competition among payment systems and the potential market and consumer protection challenges that could emerge as these services expand. I'm particularly interested in how this enquiry might influence the strategic development of account-to-account payments and what it means for the future of consumer choice at checkout. 💻 As the landscape for digital payments evolves 🚀, the diverse functionalities and underlying technologies of digital wallets are drawing significant regulatory attention 🔍. From NFC-enabled transactions at physical shops and on public transport to QR-code-driven peer-to-peer payments, these tools are transforming financial services. The recent decision by the European Commission to mandate Apple to open up NFC technology to competitors is an important step in fostering competition, enhancing consumer choice and spurring innovation across the board. As we anticipate the roll-out of the Digital Markets, Competition and Consumers Act 2024, the collaboration between the FCA, PSR and CMA aims to shape a market where fairness 🤝 and innovation go hand in hand; where digital markets remain robust and equitable. What caught my eye is the regulators’ focus on financial resilience 🔒. While the FCA believes disruptions in digital wallet services would mainly impact individual users, not the wider financial market, the imminent regulation on critical third parties (CTPs) highlights a strong regulatory focus on boosting operational resilience 🛡. Expect the results from their joint consultation with the Bank of England and the PRA any day now (slated for publication in the latter half of this year). As we gear up for the regulators' findings on digital wallets at the start of next year 📅, the evolution of payments calls for a regulatory perspective that is as adaptive and multifaceted as the technologies it oversees. I am keen to see how strategies by the FCA, PSR and CMA will evolve, ensuring that innovation is balanced with integrity, resilience and consumer protection. #DigitalWallets #Fintech #FCA #PSR #Payments

In a country where contactless payments are so widespread, how do you introduce a new payment method with a different user experience? Whenever I discuss India's UPI or Brazil's Pix, I often hear comments like, "These are different markets," "Contactless was introduced before QR," and "Introducing QR or other technologies will always be slower in Australia, making adoption a challenge." For many years, I agreed, believing the convenience of contactless was hard to beat. That was until I encountered Singapore's SGQR and popular QR-based wallets like PayNow, which enable real-time account-to-account transfers. I remember when contactless payments were emerging, Australia and Singapore were leading the world in transaction volumes. So, what happened in Singapore? How did QR payments become so widely accepted among merchants? Here are my thoughts and insights on why QR is getting popular in Singapore: 1) Role of Government and Regulators: Collaboration, creating awareness, and absorbing costs for merchants if necessary. 2) Cost to Merchants: QR payments are 65-85% cheaper than card payments. 3) Faster Settlements: Access to funds on the same day or next day, compared to 3-4 business days for card transactions. 4) Ease of Access and Setup: No need for expensive terminals and software updates from the acquirer. Simply sign up on the phone, print a QR code, and start accepting payments. 5) No Terminals = No PCI Worries Getting the merchant community behind any payment instrument can drive behavioural change. I hope Australian payments innovation doesn't stop at EMV contactless. Keen to hear thoughts and comments from my payments community.

Digital wallets have come a long way in the UK, with their usage surging due to better security and increased spending limits. It’s fascinating to see how mobile payments, led by apps like Apple Pay and Google Pay, are shaping the future of transactions. However, as regulators like the FCA and PSR step in, it'll be crucial to balance innovation with ensuring consumer protection and system resilience. While digital wallets offer convenience, recent outages remind us that cash might still play a role for some time yet to come .

🔔 The latest Digital Payment Barometer 2024 is live! 🔔   Digital payments are gaining ground in Belgium and habits are evolving rapidly, particularly among young people. This generation is increasingly paying with a smartphone.   📊 According to the latest Digital Payment Barometer, an Ipsos study conducted by the Vrije Universiteit Brussel on behalf of Febelfin, Bancontact Payconiq Company, Mastercard, Visa and Worldline, the following trends can be noted:   💻 82 % of Belgians prefer digital payments. 📱 Almost one Belgian in two (49 %) has made at least one mobile payment this year (QR code and connected object added together). Particularly young people aged between 16 and 24 years use this payment method the most. 💳 82 % of Belgians say they have paid contactless with their bank card at least once. 🛒 87 % of Belgians say they have already made an online purchase at least once, mainly with a debit card, bank or payment app & credit card. Discover all the results in the press release below. #Digitalpaymentday #fintech #contactless #digitalpayments #mobilepayments #PayconiqbyBancontact 👉 https://lnkd.in/eHN6J2xa