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Why a New European Payment Method?
European payment traffic has long been dominated by payment solutions from outside Europe, think of the solutions of international card schemes such as Amex, Visa and Mastercard, the online payment capabilities of PayPal and mobile payment methods such as Apple Pay and Google Pay. At the same time, the European market is highly fragmented, with now more than 45 locally developed payment solutions, such as iDEAL in the Netherlands and Bancontact in Belgium. For entrepreneurs who offer their products or services in multiple European countries, this means they have to support all these different payment methods in order not to miss out on customers.
This has grown traditionally, but there is an increasing need for unity and independence and a vision of the future of payments in Europe. Especially in these times, more autonomy in the area of payments is of great value.
The alliance of banks and financial institutions EPI (European Payments Initiative) has developed the European payment platform Wero and acquired the Dutch Currence iDEAL BV and Belgian Payconiq by the end of 2023. Wero - a combination of “we” and “euro” - will eventually be used in several European countries and could replace local payment methods.
What is Wero?
Wero is developed as a new way to pay in one app, replacing many local European online payment methods. A payment solution on a European scale, that works in multiple countries, with a focus on ease of use, speed and reliability. As with iDEAL, Wero will allow you to pay online, in addition, your address details are already known in the app. But Wero is going to be so much more than that. Through the app you can also pay contactless at the checkout in stores and transfer money to family and friends in seconds.
“Wero is being developed as an omnichannel payment system, which is fast and secure, offers great ease of use and for which the user needs nothing but the Wero app or banking app on their cell phone. So a very nice system for consumers, which at the same time of course offers many opportunities for entrepreneurs,” said Noor Pierik, Head of Strategic Partnerships Payments at CM.com
Why Wero?
Online stores will soon not have to offer all the separate payment methods for countries around them - like now iDEAL in the Netherlands, Payconiq in Belgium and Luxembourg and Paylib in France. As a result, a much larger target group can be served with one payment method. Physical retailers will also soon benefit from this new payment system.
The possibilities offered by Wero will go further than just payments. Think of links with loyalty programs or subscriptions. But also the storage of digital receipts and extra consumer protection, such as automatic refunds and dispute handling. By accepting Wero, you will soon enable your customers to pay in all possible ways - online, offline, you name it - in your store, restaurant or business.
How Will Wero Be Rolled Out in Europe?
The rollout of Wero is taking place in phases. Wero recently launched so-called P2P payments in Belgium, France and Germany. These are similar to a “payment request,” but also allow users to transfer money directly. The next step is payments in online stores, followed by payments in physical stores and restaurants. Payments are made via instant payments and are made within seconds and 24/7.
“We expect that the Wero brand name will be introduced in the Netherlands next year and that Wero will be rolled out as an online payment solution in 2027,” says Noor Pierik. “But at CM.com, we think it's important that our customers are not surprised and are well aware of what Wero can do for them.”
Be Ready for It
It is to be expected that in the coming years Wero will become so common that consumers will expect this way of paying to be accepted. As an entrepreneur it is therefore smart to prepare for this now and to think about what Wero can mean for your company.
Noor Pierik: “As a Payment Service Provider CM.com will of course make sure that the migration of all payment methods that will be replaced by Wero goes as smoothly as possible for our merchants. If necessary, we will of course also provide the corresponding payment terminal systems, so that people can accept Wero payments as soon as they can.”
