Payment systems
Europe needs an innovative payment system if merchants and consumers are to benefit from new technologies.
Payment technologies are in a period of rapid change and European retail and wholesale needs new business models which reflect this innovation.
The Single Euro Payments Area (SEPA) should lead to transparent, competitive and innovative payment solutions and end users must fully participate in their design. Because they have to accept a variety of payment means, merchants should only pay for the services they choose.
The multilateral interchange fee (MIF) model distorts competition in the payment market in a way which inhibits innovation and prevents new players from entering the market. Such barriers must be removed to allow merchants and consumers to fully benefit from new technologies.
Key messages:
- Cost-based business models: A cheaper and fairer payments market in Europe would benefit consumers and retailers.
- Competitive market: To create a truly Single Market, Europe needs innovative and competitive payments for face-to-face, mobile and distance selling.
- Governance: The long-term evolution of the payments market must involve payment users as well as providers.