Strengthening Europe’s sovereignty in payments

The National Payments Committee (CNMP), in which the French Banking Federation (FBF) plays an active role, adopted a new national strategy for cashless payments looking ahead to 2030 in October 2024. This strategy aims to establish an inclusive, sustainable and sovereign payments system. In this context, the banking sector strongly supports the development of robust European payment initiatives.

A strategic imperative for economic resilience

Against a backdrop of heightened geopolitical tensions, payments have become a key lever for economic resilience, industrial autonomy and national security. Strengthening payments sovereignty is therefore a strategic imperative in order to anticipate risks and ensure the continuity of transactions under all circumstances.

Preserving existing pillars of sovereignty

Payments sovereignty first and foremost relies on preserving a number of fundamental pillars:

• Cash, which remains an essential means of payment in times of crisis. It has proven to be the ultimate fallback solution when electronic systems are unavailable. To ensure continued access to cash, a new interbank cash withdrawal service in retail outlets, supported by the CB Group, will soon complement existing channels such as ATMs.
• Card co-badging, which combines access to the CB network with an international partner network, is also a key vector of sovereignty. The CNMP calls on industry stakeholders to ensure that payments via CB are systematically available, in order to preserve consumer choice and improve fee transparency.

Securing the future by supporting key initiatives

Wero and European instant payments

Backed by 14 European banks, including the six major French banking groups, and two leading industrial players, Wero is being launched in several European countries, with the ambition of expanding beyond this initial scope.

Developed by the European Payments Initiative, the service offers a simple promise: a single, secure mobile payment wallet enabling free instant transfers using just a phone number or email address, without the need to enter an IBAN.

Rolled out in France in autumn 2024, this solution addresses the strategic objective of fostering the emergence of a European payments platform in a highly competitive global environment. In addition, the European regulation adopted on 13 March 2024 will accelerate the rollout of instant euro transfers across Europe.

The digital euro: an initiative still under review

From the banking sector’s perspective, Europe already has a full range of retail payment solutions that meet customer needs and ensure payments sovereignty. The sector therefore continues to question the specific need addressed by the European Central Bank’s digital euro project, which remains at the technical feasibility stage.

Close attention must be paid to its design, the additional costs involved and the potential consequences for the financing of the economy. The FBF is keen to receive further clarification on key issues such as financial stability, the credit transmission mechanism, the operational cost of the scheme for the private sector (merchants, businesses and banks) and for the public sector (central banks themselves and national public administrations).

It should also be borne in mind that one euro less in deposits means one euro less in financing for the economy.

A comprehensive approach to payments sovereignty

European payments sovereignty is an ambitious objective that requires a comprehensive and coordinated approach. By combining innovation (such as European instant payments and Wero), a strong European financial regulatory framework (including PSD3, DORA and AML/CFT measures), and sustained focus on payment security, banking cybersecurity, data protection and the fight against payment fraud, Europe can build a financial system that is both competitive and secure for citizens and businesses alike.

The active involvement of the FBF and the strong commitment of banks to these initiatives are essential to meeting the challenges and seizing the opportunities of the digital era.