Enlarge image
Payment methods Credit card: The European alternative is struggling.
Photo: Monika Skolimowska / dpa
The European means of payment initiative EPI loses one of the major German banks: Commerzbank officially canceled its participation in the project.
"The remaining range (market coverage) and relatively high initial investments are no longer consistent," said a spokesman for the bank.
“This means that the essential prerequisites for a strategic investment are not met.” Commerzbank will not be involved in the project “at the moment”.
The "Handelsblatt" had previously reported on it.
more on the subject
Payment systems: Bundesbank warns of dominance by Apple and Google
The official announcement confirms rumors that were already circulating in December.
At the time, insiders said that several financial institutions would step on the brakes on the project, including Commerzbank.
The spokesman now explained that the EPI was the right idea to promote European payment transactions.
However, numerous banks from various European countries have already declared their withdrawal.
Visa, Mastercard, PayPal and Co. dominate the market
With Deutsche Bank, however, Germany's largest credit institution is sticking to the initiative.
"We continue to support a European solution," said a spokesman.
In the fall, financial experts from the banks assumed an initial investment requirement of around 1.5 billion euros.
With the EPI, Europe wanted to become less dependent on foreign payment service providers.
When it comes to credit card payments, the US groups Mastercard and Visa dominate in the EU.
The market for digital payments is also heavily influenced by US providers such as Apple Pay and PayPal.
Dozens of banks initially participated in the EPI.
The common goal was to create payment options that were secure, innovative and accessible to everyone, said Jörg Kukies, State Secretary for Finance at the time.
Independence from other regions of the world can thus be increased.
Seven EU countries supported the project in a position paper.
The Bundesbank had also supported the push by the financial institutions.
jlk/Reuters
