Europe Urgently Needs to Reduce Dependence on U.S. Payment Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Source: seekingalpha
- Payment Dependency Issue: Martina Weimert, CEO of the European Payments Initiative (EPI), highlighted that Visa and Mastercard accounted for nearly two-thirds of card transactions in the Eurozone in 2022, indicating Europe's heavy reliance on international payment solutions and the urgent need for action to enhance autonomy.
- Cross-Border Payment Initiative: The EPI launched the Wero platform in 2024, which is live in Belgium, France, Germany, and the Netherlands with over 43.5 million registered users, aiming to provide a European alternative to U.S. payment solutions and facilitate seamless cross-border payments.
- Timeliness of Digital Euro: Weimert expressed concerns about the European Central Bank's plan to issue a digital euro by 2029, suggesting it may arrive too late to address potential diplomatic tensions, thereby impacting Europe's payment independence.
- Urgency for Action: As European officials grow increasingly worried about the dominance of U.S. payment companies, Weimert emphasized the necessity for Europe to act swiftly to leverage domestic payment card schemes and reduce reliance on external payment systems to ensure financial security and sovereignty.
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Analyst Views on V
Wall Street analysts forecast V stock price to rise
25 Analyst Rating
23 Buy
2 Hold
0 Sell
Strong Buy
Current: 324.180
Low
330.00
Averages
406.59
High
450.00
Current: 324.180
Low
330.00
Averages
406.59
High
450.00
About V
Visa Inc. is a global payments technology company. It facilitates global commerce and money movement across more than 200 countries and territories among a global set of consumers, merchants, financial institutions and government entities through technologies. It operates through the Payment Services segment. It provides transaction processing services (primarily authorization, clearing and settlement) to its financial institution and merchant clients through VisaNet, its proprietary advanced transaction processing network. It offers a range of Visa-branded payment products that its clients, including nearly 14,500 financial institutions, use to develop and offer payment solutions or services, including credit, debit, prepaid and cash access programs for individual, business and government account holders. It also provides value-added services to its clients, including issuing solutions, acceptance solutions, risk and identity solutions, open banking solutions and advisory services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Strong Performance: Compass achieved record revenue of $1.9 billion in Q3 2026, marking a 24% year-over-year growth, and forecasts sales to reach between $1.6 billion and $1.7 billion in Q4, further solidifying its market position.
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See More
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- Cautious Industry Response: Major credit card issuers like Capital One are in a holding pattern amidst political rhetoric, fearing that if a cap is implemented, they will be compelled to cut credit lines, adversely affecting credit access for lower-income households.
- Profitability at Risk: Analysts predict that a long-term rate cap could reduce Capital One's earnings per share by 25% or wipe them out entirely, as credit card operations account for approximately 74% of its total revenue, primarily derived from interest on customer balances.
- Acquisition Impact Significant: Capital One's $35 billion acquisition of Discover last year will be affected by any interest rate limits, as Discover's credit card balances will also be impacted, further diminishing Capital One's competitive edge, especially without a robust payment network.
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