French and German banks to launch Sepa rival to Visa and MasterCard
Deutsche Bank, BNP Paribas and Société Générale are expected to launch a European competitor to challenge debit card duopoly
VIENNA, PARIS & FRANKFURT - A rival to Visa and MasterCard's duopoly of the European debit card market is expected to be launched by a consortium led by French banks Société Générale, BNP Paribas and Deutsche Bank in Germany.
The project, called 'Monnet' and expected to launch in October according to Bloomberg, was described as "promising" by German Bundesbank member Hans Georg Fabritius, speaking at the Euro Banking Association conference in Vienna.
Wiebe Ruttenberg, head of market infrastructure division at the European Central Bank (ECB), said in a speech at the same conference: "We need at least one alternative card scheme in Europe to become a credible challenge to the duopoly."
The anticipated move follows political pressure from ECB to create a European Union (EU)-based alternative to MasterCard's Maestro and Visa's V-Pay within Europe's Single Euro Payments Area (Sepa).
In April, the European Commission punished Visa Europe with an interchange antitrust fine only days after reaching an interchange agreement with MasterCard on the same issue.
EU calls for a home-grown rival to the US MasterCard and Visa duopoly go back to the European Commission's 2007 order for MasterCard to cut cross-border direct debit fees, while Jean-Michel Godeffroy, ECB director-general for payment systems, last year described the status quo as "not enough".
The banks have until now been reluctant to take up the cause, due to industry uncertainty over interchange fees, with the proposed harmonising effects of Sepa within the EU's internal market taking far longer to take effect, requiring the European Commission to consult on new migration deadlines in June this year.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
SEC streamlines overhaul of stock trading rules
Tick size and access fee rules simplified from first draft, but Peirce still questions rationale
Supervisors use generative AI to tame ‘chaotic’ data
Officials merge credit databases with unstructured reports to sharpen bank oversight, explains Banco de España ex-deputy
EU banks fear loss of NSFR repo relief
European Commission must decide by next June; other jurisdictions adopted softer calibration
Running the numbers on Barr’s Basel III endgame revisions
Fed vice-chair’s plan to ease capital requirements for big banks still lacks critical details
Endgame manoeuvre: US banks put SLR reform back in spotlight
Plan to ease Basel III brings renewed focus to impact of leverage ratio on US Treasury market
Regulators want to fix AT1s. Investors want restraint
Tweaking the instrument that regulators love to hate may be the only way to prevent its abolition
More disclosure touted to temper pre-hedging ills
Transparency could help investors choose a dealer, but will they use the disclosures?
Fed’s Basel III rollback gives clearing units a capital break
Client-cleared trades will be exempt from CVA charges and G-Sib surcharge calculations, says Barr