- Seven banking organisations from around Europe announce that they will part of the new scheme, designed to enhance mobile payments
- Competition from fintech groups believed to have prompted members of the European Mobile Payment System Association to join forces
- “The rapid growth in mobile payments will lead to an increasing user demand of being able to pay everywhere in Europe with your mobile payment solution, leaving cards and physical wallets behind”, predicts spokesperson
Seven of Europe’s leading payments providers announced on Tuesday that they would collaborate to build an all-new payments service designed to make mobile online money transfers easier.
The group of operators, many of which are part of banking institutions or other financial services groups, are aiming to construct the pan-European service over time – although the building process has already begun.
It is believed that once the new service is up and running, it will be able to reach 25 million users located across the continent.
It is also understood that there will be a million or so acceptance points, as well as a three-figure number of banks which are able to work with the system.
The idea comes from the European Mobile Payment System Association, which represents largely traditional, established institutions.
Many of the seven organisations behind the initiative are believed to be pursuing it due to worries that they may be outcompeted by the likes of financial technology (fintech) organisations.
The group includes the apps and services of banking organisations from across the continent, including MobilePay from Denmark’s Danske Bank A/S – which appears to be acting as an informal leader for the group, with its spokesperson frequently quoted in press articles.
Other groups to be part of the initiative include Belgium’s Banccontact Payconiq and VIPPS, from Norway.
Swish, a Swedish service, is part of the group, as is TWINT in Switzerland and SIBS in Portugal.
Bluecode, which is used in Germany and its near neighbour Australia, is also part of the group.
According to Mark Wraa-Hansen, of MobilePay, this is only the beginning – and other organisations which offer a similar service to his own are likely to find themselves wanting to join.
“The rapid growth in mobile payments will lead to an increasing user demand of being able to pay everywhere in Europe with your mobile payment solution, leaving cards and physical wallets behind”, he said.
“We will see more mobile payment systems joining in the time to come.”
The political aspect of the European Mobile Payment System Association’s history will also be of interest to many.
According to press reports, the European Mobile Payment System Association is actually headquartered in Switzerland, which places it outside of the EU.
It is understood that the Association has not yet worked in co-operation with the European Commission, a key part of the EU’s leadership structure.
Learn more about the many exciting developments in the cross border payments sphere by checking out our magazine.
