Observed Signal · Nov 22, 2024 · Product Launch · Source: Trending Topics · Impact: 2/5 · Sentiment: Neutral
European Payments Initiative Launches Wero App to Challenge PayPal
The European Payments Initiative (EPI) is launching Wero, a European smartphone payment app, on Monday to compete with PayPal. Initially, only customers of German Postbank will be able to use the service to send and receive money via mobile number or email address. Wero is backed by a consortium of 14 banks and two payment companies from five countries. The app is available in Germany, France and Belgium, with further markets planned. EPI reports 14 million registered users across Europe, around 80 percent in France, and eight million transactions processed. From 2025, payments in online shops are planned, followed by in-store payments around 2026, plus instalment features and a European ID wallet. However, past European payment attempts such as Giropay and Paydirekt failed, and roughly half of the initially about 30 participating banks have left the EPI project over four years.
A new European payment system launch could influence e-commerce checkout and payment infrastructure in Europe, but has limited direct effect on advertising technology.
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Key Takeaways & Evidence Grounding
- EPI launches Wero payment app on Monday, initially for Postbank customers in Germany.
- Wero is a joint initiative of 14 banks and two payment firms from five European countries.
- EPI reports 14 million registered Wero users and 8 million processed transactions, mostly in France.
- Online shop payments via Wero are planned for 2025; in-store payments from 2026.
- Nearly half of the original about 30 participating banks have withdrawn from the EPI project since its initiation four years ago.
Connected Companies & Entities
6 Entities mapped“EPI aims to position Wero as a European alternative to the US service PayPal....”
“Dominik Hennen, Head of Personal Banking at Deutsche Bank, announced that Postbank, which belongs to Deutsche Bank, will go live with Wero o...”
“Postbank, a subsidiary of Deutsche Bank, will initially offer Wero to its customers in Germany....”
“EPI is the joint venture behind the Wero payment system....”
“EPI is attempting to create a European counterpart to US companies such as Mastercard, Visa and PayPal....”
“EPI is attempting to create a European counterpart to US companies such as Mastercard, Visa and PayPal....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
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Google launches unified agentic AI for Gemini
At a Google Cloud event on Thursday, Google announced it is bringing agentic AI to its Gemini assistant, launching a unified agent that can autonomously plan and execute tasks on behalf of users. Aimed initially at businesses, the agent can connect to internal systems and external tools, use custom skills, and even choose from third-party models like Anthropic's Claude. It will have its own Workspace account with an email address, and will write its own audit trail. Early testers include On, Shopify, and PayPal. Gemini has over 1 billion monthly active users, and nearly 90% of Fortune 100 companies use Gemini Enterprise.
German e-commerce report: AI now powers most customer chats
The EHI Retail Institute's latest E-Commerce Report, analyzing 1,000 German online shops and marketplaces, reveals widespread adoption of mobile wallets: 97.2% support them, with PayPal leading at 96.3%. Apple Pay grew to 49% (from 37.8%) and Google Pay to 32% (from 23.1%). Invoice purchase remains a German staple at 81.7%. AI is dominant in customer service: 77.9% of existing chat functions are AI-powered, though only 40.8% of shops offer chat at all, meaning 31.8% of all shops have an AI chat. Click & Collect is offered by 34.6% of shops, with 56% of those allowing online payment. The report also highlights that Shopware leads the shop systems market at 12.5%, ahead of Shopify (9.8%) and Magento (7.2%).
BNPL Surges for Large Purchases
Buy now, pay later (BNPL) is gaining significant traction for larger online purchases. According to a representative Verivox survey, 15% of respondents would now prefer to pay for an online purchase over 1,000 euros in installments, up from 9% in 2024. This is the strongest growth among common payment methods. Invoice remains the most popular (29%), followed by PayPal (21%) and cards (14%). The trend is particularly pronounced among lower-income households, with 23% of those earning under 2,000 euros net monthly favoring installments, versus only 7% of those earning over 4,000 euros. However, the rise in BNPL usage also increases the risk of over-indebtedness. New stricter regulations on installment financing, including comprehensive creditworthiness checks, will take effect from November 20. For smaller purchases (25-100 euros), PayPal remains dominant, and installments are rarely used.
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