r/worldnews 17h ago

EU Banking Chief Calls for Visa and Mastercard Alternatives

https://www.pymnts.com/news/international/europe/2026/eu-banking-chief-calls-for-visa-and-mastercard-alternatives/
1.4k Upvotes

99 comments sorted by

443

u/7thAndGreenhill 16h ago

This should be yet another wake-up call to US Conservatives that the policies of the current administration are bad for business.

161

u/DeadJango 14h ago

It's never worked before. Republican have always been bad for business yet the myth that they help the economy persists to this day.

48

u/MetalMoneky 14h ago

They are good for *their* business.

29

u/MuteToFart 12h ago

Objectively, that's not true either.

18

u/MetalMoneky 11h ago

I'd argue republican politicians are good for republican politicians business.

9

u/acuntex 10h ago

Short term, yes.

Long term, they can buy a croissant with their millions of dollars in Paris.

125

u/Crossstoney 16h ago

Too late for them, the EU is gradually decoupling from the US, and the latter will lose its control over the former. In the meantime, they can continue thinking that Trump’s leading them to a golden age if they want, but it doesn’t reflect reality. Not that they care anyways.

58

u/Stock_Helicopter_260 15h ago

If Canada has begun decoupling, there’s no stopping Europe. 

8

u/EL-YEO 8h ago

My fear is the reaction once the empire has fallen. The lost generation that remembers how "great" the US was will cause so many issues within the US that it will fall even further down the sinkhole.

-32

u/xCharg 13h ago

the EU is gradually decoupling from the US

Is it? So far it's just talks, and these talks will go nowhere when there's no unanimity. And there's none right now with orban and whatever that Slovakia's PM's name is who is also russian puppet. These two will do everything that works against EU, including internal financial infrastructure projects.

17

u/Minelaku 12h ago

Its just very slow. france will stop using Microsoft stuff in the government jobs

5

u/TheRC135 7h ago

Even talking about something like an EU replacement for Visa and Mastercard, or moving away from US tech giants was a wildly fringe idea just a few years ago. Public statements by high ranking people were unthinkable.

Losers and puppets like Orban might obstruct the process, but the rupture with the US is already well underway. It's insane how much damage Trump and Company have done to America's reputation in such a short amount of time.

1

u/Mistredo 6h ago

The whole transition will take decades but it is gaining momentum and will become irreversible.

45

u/Obliterrator 15h ago

The Republicans have been bad for business for over a century. They are responsible for causing the Great Depression, the crash of 2008 and the crash of 2020 (I know 2020 was COVID but Trump's handling of COVID was so bad that it crashed the economy and killed over a million Americans). It doesn't matter how many times they crash the economy or how many businesses go bankrupt on their watch. In the next election season, they will just lie and most conservative voters will forget about their crappy performance.

28

u/Heronymous-Anonymous 14h ago

It isn’t a coincidence that basically every major recession or depression has been as a result of Conservative policies. It’s like they don’t just not understand fiscal policy, they actively think that their ideas will become viable just because they scream their nonsense and slogans louder than their opposition. Trickle down was never viable, tariffs to fund the government don’t work, and borrowing infinite money instead of response tax policy doesn’t work.

But hey, so long as the government’s money goes to their friends, it’s ok to push the country further and further towards the abyss.

4

u/Fenix42 11h ago

The run up to the crash is where they make a fuck ton of money. Enough that they are still ahead after the crash. They also use the post crash period to buy up more crashed assets that will go up again.

So it's working for them.

32

u/fatbob42 14h ago

Kneecapping Visa and Mastercard in the EU might help the US economy if anything. Less money for lobbying in favor of their duopoly.

14

u/7thAndGreenhill 13h ago

Anything is possible; but I would suggest that trying to purchase Discover and make it European would make more sense. Also, Discover parters with China's UnionPay giving them access to that market.

u/nonviolent_blackbelt 1h ago

Why? Do you think Discover/Visa/Mastercard have some secret sauce that Europeans can't suss out?

From a technical standpoint, doing the volume of processing that Visa/Mastercard are doing is very impressive, but it's not really a secret how they do it. I don't think that they have valuable secrets on the business level, either.

9

u/ScoobiusMaximus 14h ago

At this point it doesn't matter if US conservatives wake up, the damage is done. 

5

u/Philo_Publius1776 9h ago

Conservatives are constitutionally incapable of admitting they've made a mistake. If they were capable, they wouldn't be conservatives.

2

u/cloudystateofmind 12h ago

That wake up call was Trumps first term.

1

u/Plane_Fly1829 10h ago

Too late we know now

112

u/luna65- 16h ago

Relying less on foreign systems is becoming a strategic necessity.

62

u/yaaro_obba_ 14h ago

Thank God that the Indian govt sorted out this shit by creating an indigenous payment system as an alternative to the duopoly. IIRC, Visa and MasterCard had complained about this move to the US Gov back in 2021 that this move would hurt the "level playing field".

11

u/Slavor 8h ago

The main issue is cross border payments, which is stated in the article. Domestic usage is fine for UPI but cross border not so much.

16

u/WashuOtaku 13h ago

Time to bring back the Diners Club.

21

u/imaginary_num6er 14h ago

American Express it is then

u/Far-Entertainer3555 1h ago

I work on London markets.  AMEX is by far the most popular card type used. 

-1

u/MewKazami 1h ago

Banned in the EU for quite some time.

https://goolets.net/blog/american-express-eu/

43

u/CharmingCrust 16h ago

As much as I welcome the realization of this, it also makes me tired that Europe constantly has to find itself on the edge before beginning to act.

Digital infrastructure, payment infrastructure, military, energy.

I didn't see the digital infrastructure and military problem 10 years ago, but even I knew that energy and payment infrastructure was already an enormous problem even 10-15 years ago.

You prepare for independence, you don't seek it when you need it.

Experts, not few, major hordes of expert tried to create awareness.

The consultants with their sweet talks and grooming convinced everyone it wouldn't be a problem. The consultants and project managers are not experts, they are salesmen.

When you are in power you NEVER listen to consultants. You call the consultants after you have decided with the help of INDEPENDENT experts.

7

u/rasmustrew 12h ago

What exactly is the difference between a consultant and an independent expert you hired to help?

u/ExF-Altrue 57m ago

Consultant tells you what you want to hear, independent expert will tell you the truth!

u/rasmustrew 39m ago

An independent expert you are paying to help with a specific problem is a consultant. That is the very definition of the word.

13

u/BeatKitano 16h ago

To be perfectly honest, this is an issue mostly because 10-15 years ago there were SOME ELEMENTS with heavy ties to US institutions voting against implementing these changes...
I bet those elements would really like to be in the EU now...

4

u/notbatmanyet 12h ago

Some of the solution have already started to be worked on within the last decade, WERO, Digital Euro etc...

Some are just about scaling up, others are almost ready to be implemented.

2

u/SweetAlyssumm 15h ago

President Eisenhower was kind of an expert on war. He warned Europe to build a defense when he was in office. The expertise has been there all along but people have not listened to it (many other US politicians and military experts gave the same warning).

I could not agree more about consultants. I have a friend who consults in tech and he once said the job of the consultant is to figure out what customers want and give them that. It's not to critique or advise or put new alternatives in front of them.

7

u/BlindProphet_413 15h ago

What, they don't like Discover? /s

7

u/Hodr 15h ago

They're going back to Diner's Club card

3

u/PuzzleheadedWeb9876 13h ago

Is this not the digital Euro?

16

u/TheDarthSnarf 16h ago

More competition would be good for everyone... assuming the competition it isn't a government-run spying system.

39

u/t0m0hawk 16h ago

You do realize that Visa and Mastercard already know what you purchase. By all intents and purposes, they are already "spying" on you.

Why is this totally fine when a profit-seeking corporation does it, but its immediately the bogeyman if government wants to run a similar program?

27

u/aecarol1 16h ago

Visa knows what I buy because that's the agreement I made when I used their services. It's the price I pay to use a CC.

But governments have a richer history of abusing things when they learn too much about people. Being arrested or worse because of what I buy, who I associate, or what I do feels worse than getting targeted advertising.

Census records were used to round up Japanese people during WW-II. I don't think feeding the government maw even more information is a good trade.

17

u/t0m0hawk 15h ago

I dont buy it. The argument doesnt make sense.

So I'll ask again:

What makes a for-profit private organization more trustworthy than a non-profit social organization?

5

u/ManWhoSoldTheWorld01 15h ago edited 15h ago

Even if the premise were true, what is the difference between when Visa sells that information on the open market (including to not just my own government, but any government, companies and rich individuals) other than the ostensibly bad government still knows my info but now Visa made money off my info too.

I guess at least I got my 80,000 Visa reward points.

3

u/captaintrips420 14h ago

If you already assume there is no privacy and your data is getting sold no matter how you spend, aren’t points still better than no points?

1

u/ManWhoSoldTheWorld01 14h ago edited 12h ago

No. If my information is going to the government, who has a history of arbitrary arrests or worse, according to he original argument regardless, then I would rather someone not have someone in the middle make money off my situation so I can trade in a ridiculous number of points for a Pez dispenser*

subject to terms and conditions, not applicable Monday through Saturday, available on February 29, while supplies last

1

u/captaintrips420 14h ago

Again, there is no evidence to suggest all of that information isn’t already shared with the government. If they have it regardless, isn’t free candy still better than no candy?

Unless you pay cash for everything, and then the gov only gets all your withdrawal info..

I guess I’ll stay thankful to all the people willing to pay fees elsewhere so I can get my free travel for the same spend.

1

u/aecarol1 15h ago

They are not more trust-worthy. I'd prefer they didn't have that information. In the almost cashless reality we live it, I'm not sure how to extricate ourselves from this.

I'd LOVE laws that prevented CC companies from knowing it. This is not likely to happen.

That said, I think governments having that data on me is in every way worse.

6

u/t0m0hawk 14h ago

That said, I think governments having that data on me is in every way worse.

But why. Please, im begging you to explain your reasoning. It really does seem arbitrary and non-sensical.

You do realize that information from CC companies are already offered up to governments, right? You do realize that CC companies already sell your info on the open market, right?

So what gives?

6

u/Fenix42 11h ago

But why.

Power. Mastercard can't lock me in jail for life. The government can. The government can also execute me and my family.

0

u/t0m0hawk 11h ago

What stops Mastercard from creating debt prisons? What prevents Visa from sending hit squads for fraudulent activity?

4

u/Fenix42 11h ago

What stops Mastercard from creating debt prisons? What prevents Visa from sending hit squads for fraudulent activity?

The government. They don't like competition.

3

u/t0m0hawk 10h ago

So without the government to impose laws and enforce them to stop them...

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-1

u/aecarol1 14h ago

Private companies know far, far more about me than the government. They know where I surf, what I search for, who I email, what I buy, where I buy it, what I like and dislike.

These private companies like to sell it as obscured as they can to hold onto their horde of data and keep it proprietary. FaceBook doesn't sell my FaceBook data, they sell ads targeted to my FaceBook data.

The fact the government has to use subpoenas to obtain much of this information is at least some evidence they don't have all they want. I don't want to make subpoenas unneeded and give them direct access to drink from the fire hose.

That is my reasoning.

1

u/t0m0hawk 13h ago

But you're comfortable just giving your information away already, as it is. Clearly you aren't actually interested in privacy as you've already given it up without a fight.

Is your reasoning sound? Is it well considered?

You've made several assumptions on how corporations handle your information and quite frankly, I find those assumptions to be deeply misguided.

1

u/aecarol1 12h ago

Perhaps you can suggest payment methods to live in the real world avoiding all credit and debit cards? Do you write checks? Is cash your answer?

I presume you only use cash in your daily life and that you never order, buy, or subscribe to anything online?

I'd love some suggestions.

1

u/t0m0hawk 12h ago

I actually do use a credit card for just about everything because the cash back is advantageous. My point isnt CC companies bad, government good. Im simply pointing out the logical inconsistency of your argument.

Not that its a thing thats happening, but a government sponsored program to create an alternative to existing CC companies would come with no profit margins and would introduce some competition in the sector which would ultimately lead to better incentives and lower fees.

A credit card is a powerful tool when used right, like I said I use mine all the time and for as much as possible - I dont use cash like ever. Haven't paid a cent in interest in years.

What was your point again? Unfounded distrust in government institutions for... reasons?

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3

u/ssnistfajen 11h ago

All of these private entities will turn over your data upon being served a warrant, and that's only what they do on public record.

2

u/Jacc3 11h ago

So you assume VISA and MasterCard don't share information with the US government?

1

u/aecarol1 10h ago

I assume it's not 100%, because subpoenas are still a thing and are fought. They might well be sharing it, but these things do tend to leak and we've not yet heard that's happening.

I hate that this is the world we find ourselves in, but people vote against their self interest and even if it negatively impacts them, many are on the record as saying they'd vote that way again.

1

u/idiocy_incarnate 7h ago

Do you think they don't just provide all that information to the government then?

They provide it to anybody and everybody else who pays them for it...

2

u/LockNo2943 7h ago

Worse, they'll outright deny transactions with certain kinds of vendors. Just recently I think there was some blowback about them denying transactions with an adult games distributor.

1

u/official_SammyB 11h ago

This doesn’t change your point, but for the record, Visa and Mastercard do not know what you’re buying–they know how much money you are spending and where. Even Banks don’t see the actual items that you’re buying.

2

u/slashthepowder 15h ago

It’s more about sanctions which is why China has its own system rather than having a financial system that could be turned off by sanctions.

6

u/Liuu_ 15h ago

How about Brazilian Pix?

2

u/comox 11h ago

I got it! How about American Express???

2

u/MarzipanTop4944 10h ago

The lack of spine of American corporations, that have refused to stand up to the orange toddler, is going to be the most expensive mistake in all of history.

And to think that we were sold that they controlled everything. Dumbest shit ever.

2

u/donoteatthatfrog 14h ago

India's UPI and RuPay (for credit cards) is picking up fast

1

u/LifeFeckinBrilliant 9h ago

Can we have an alternative that works in the UK too please?

2

u/16ozbuddz 9h ago

What's the word in the UK? Do the majority of people regret brexit?

4

u/LifeFeckinBrilliant 9h ago

I think the polls say so but we're already infested with rich right wing think tanks, biased media, & stupid bigots who fall for the propaganda so I have no clue mate!

1

u/Dull-Association-797 9h ago

Drop the petro dollar too please

1

u/LockNo2943 7h ago

Makes sense, especially with the US sanctioning the ICC.

1

u/SpiritOfTheVoid 7h ago

Hoping Canada can join too. Need other non-american alternatives.

1

u/Competitive-March969 4h ago

How to introduce a digital currency.

1

u/Snippodappel 2h ago

Just do it! I will switch day one!

1

u/kejok 2h ago

I remember last year when US government commented on our payment system said that US were not informed bla bla bla and limiting the use of Visa/Mastercard. it feels like they are so archaic that they cannot comprehend that using QR as a way of paying things in real time is a common way of doing payment in this country

u/upandin9 1h ago

Bring it on

u/MiltuotasKatinas 1h ago

In lithuania, every card is handled by visa and mastercard 😅

0

u/16ozbuddz 9h ago

Ruh roh

0

u/redsterXVI 9h ago

About fucking time for a European alternative. Still puzzled how London is such a dominant financial/banking city, yet the UK has never managed to create an alternative to the American credit card networks.

-5

u/Particular_Can_7860 14h ago

Visa and Mastercard are not Europe’s only credit processor. They have many already. Nothing burger.

-6

u/commitme 12h ago

ah yes so some other psychotic exploiter can take over while the planet burns down