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Concerns over Europe’s dependence on foreign-owned payment infrastructure are moving beyond policymakers and into the mainstream, according to a new report from card issuing and processing specialist Enfuce – “Payment Sovereignty: Consumers Are Paying Attention”
Payment Sovereignty: Consumers are paying attention
The study, which surveyed 3,000 consumers and 500 payment industry executives across the UK and Europe, found that a majority of respondents are increasingly worried that geopolitical tensions could disrupt access to essential payment services.
More than six in ten consumers (62%) believe political disputes could lead to restrictions on payment networks operating in their market, while 59% specifically fear that the US government could exert influence over American-owned payment schemes such as Visa and Mastercard.
Support for European Alternatives Continues to Grow
The findings highlight strong support for greater European control over payments infrastructure. Nearly three-quarters (73%) of consumers said it is important for Europe and the UK to have greater control over domestic payment systems, while an overwhelming 97% of payment providers shared that view.
The research also suggests that industry support for emerging European alternatives is accelerating. Eighty-five per cent of payment providers have either implemented or plan to implement Wero, the account-to-account payment solution being developed by the European Payments Initiative (EPI).
However, the study indicates that concerns about concentration risk extend beyond geopolitics. Around 60% of consumers believe it is problematic that a small number of global companies control such a significant share of payments activity.
Convenience Still Outweighs Sovereignty at Checkout
Despite widespread support for payment sovereignty, consumers remain pragmatic when selecting payment methods. Security, merchant acceptance and privacy were identified as the most important factors influencing payment choice, significantly outweighing local ownership or national control.
Only one in five consumers said they would switch to a new payment method primarily because it was locally owned.
The findings underline a challenge facing Europe’s payment sovereignty ambitions. While public awareness of infrastructure dependency is increasing, alternative payment networks will need to deliver compelling user experiences, broad acceptance and robust security if they are to gain meaningful market share from established global incumbents.
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