The Digital Euro & Co.: Does Europe Really Need a New Payment System?

Europe’s payment landscape is changing fast. Digital wallets, open banking, real-time transfers—and now, the prospect of a digital euro—are reshaping how we pay. But the key question remains: do consumers actually want these innovations?

Fragmentation vs. Uniformity

Europe’s payment system is fragmented. Germans still favor cash, iDEAL rules in the Netherlands, BLIK is popular in Poland, and Spaniards use Bizum. Add mobile wallets and open banking tools, and it’s a crowded space. New efforts like the digital euro and Wero aim to unify this chaos and reduce dependence on U.S.-based giants like Visa, Mastercard, or Apple.

The goal? European financial sovereignty and a seamless, secure payment system. But even with good intentions, if these tools don’t appeal to consumers, adoption will falter.

Shifting Habits

Consumer habits can shift quickly, as COVID-19 showed. Overnight, hygiene concerns pushed Germans toward contactless payments. Today, tapping a card or smartphone at the bakery is common—even expected.

Younger generations, in particular, demand speed, simplicity, and choice. Yet not every new method succeeds. While Apple Pay and Klarna gained traction, others like Giropay and Samsung Pay failed to deliver clear benefits—and faded.

What Makes a Payment Method Succeed?

People don’t want complexity when it comes to money. They want solutions that are easy, secure, and widely accepted. Cash is simple but inconvenient for large or unexpected expenses. Cards and phones are faster and require less effort—hence their growing use.

Successful payment systems solve real problems. PayPal simplified peer-to-peer payments. Klarna added buyer protection and flexibility. Apple Pay replaced physical cards without added apps. These services succeeded because they made life easier, not just different.

In contrast, Giropay struggled by focusing on merchant adoption rather than consumer needs. Without a strong reason to switch, consumers stuck with what they knew.

Lessons from Across Europe

In Sweden, Swish flourished. In Switzerland, it was Twint. In both cases, banks helped roll them out—but their success came from meeting actual consumer demands. This is where many initiatives fail: not because of bad tech, but because they solve a problem nobody really has.

The Digital Euro’s Real Test

The digital euro, Wero, and similar ideas won’t thrive just because they’re new or more European. They must offer tangible improvements over what people already use. Otherwise, they risk being just another solution in search of a problem.

Ultimately, adoption—not innovation—is the real measure of success. If a new method doesn’t make consumers’ lives noticeably easier, it won’t stick.