The French payments network CB is reportedly positioning itself to spearhead a Europe-based initiative aimed at challenging the long-standing dominance of Visa and Mastercard across the European Union. This strategic move comes as EU officials increasingly voice apprehension that the significant market share held by these two global payment giants could potentially be leveraged against the region’s interests, according to a report from the Financial Times (FT) on Sunday, April 19.
Philippe Laulanie, CB’s director general, informed the FT that the organization has successfully reversed a prolonged period of declining market share within France. Five years prior, CB’s share of domestic payments stood at over 90%, a figure that had subsequently fallen to 75%. Laulanie highlighted a renewed attractiveness for CB, citing Russia’s invasion of Ukraine as a critical event that underscored the concept of ‘strategic dependencies’ and the imperative for ‘payment system sovereignty’. He further elaborated that ‘current tensions with the U.S. under Donald Trump have underscored the idea that some services could be cut off or subject to conditions,’ reinforcing the geopolitical motivations behind this push for autonomy.
Established in the 1980s with the backing of France’s largest banks, CB operates as a nonprofit entity designed to mutualize certain operational costs. The FT noted that CB’s previous market share erosion was partly due to its American competitors, who reportedly enticed banks with exclusive agreements and offered incentives to FinTech companies, enabling them to provide users with free cards. Despite these historical challenges, CB’s ‘co-badging’ system, which allows French bank cards to function on both international and local networks, is now attracting significant interest. Laulanie stated that CB currently has ‘around 30 candidates’ expressing interest in joining its network, signaling a robust resurgence in its appeal.
The strategic importance of CB’s initiative has garnered high-level political endorsement. French President Emmanuel Macron has publicly supported CB’s co-badging program, famously describing the French payments network as ‘the last kilometer of our economic sovereignty,’ as reported by the FT. This presidential backing underscores the national and regional significance attributed to fostering independent payment infrastructure.
While CB aims to provide a robust alternative for card payments, the broader European landscape is also witnessing other efforts to reduce reliance on non-European payment solutions. The FT pointed out that, currently, there is no cross-border card system within the EU that serves as a direct alternative to Visa or Mastercard. However, a European rival to Apple Pay, known as Wero, was launched in 2024 by the European Payment Initiatives (EPI). As of February, Wero had amassed 48.5 million members across Belgium, France, and Germany, with plans to extend its services to online and in-store payments by 2027.
The debate over payment system sovereignty in Europe extends beyond private initiatives to include discussions around central bank digital currencies. The European Central Bank (ECB) has championed the development of a digital euro, viewing it as a crucial mechanism to safeguard ‘our freedom, autonomy and security,’ as articulated by ECB executive board member Piero Cipollone in September. Conversely, the EPI has raised concerns that a digital euro, in its current proposed design, could potentially impede the growth and innovation of private sector payment systems. Banks, prior to a November hearing on the matter, argued that ‘The current design of the retail digital euro largely addresses the same use cases as private solutions, without offering any clear added value for consumers.’
The concerted efforts by CB, supported by French political leadership and broader European initiatives like Wero, reflect a growing determination within the EU to establish greater control over its financial infrastructure. This strategic pivot, driven by geopolitical considerations and a desire for economic sovereignty, highlights a pivotal moment in the evolution of the European payments landscape, where indigenous solutions are increasingly seen as essential for regional resilience against external dependencies.
