Comment by bluecalm
17 hours ago
>>As a European, I am glad that this is finally discussed in the open! I have made multiple comments in the last weeks that one of the most important things, for me, is an alternative to the Visa/Mastercard duopoly.
The main reason we don't have an alternative to Visa/Mastercard duopoly is protectionism of EU countries. There are local alternatives that do pretty well (BLIK in Poland, Revolut Pay in countries where it's popular) but entering more markets is like pulling teeth because EU throws regulatory obstacles at every step.
>> Why isn't the European Commission mandating these app payments in different EU countries to connect with each other? Wouldn't that go faster than the digital euro, that is set to come no earlier than 2029?
It would but then their non-local alternative could win which they really don't want to happen.
> The main reason we don't have an alternative to Visa/Mastercard duopoly is protectionism of EU countries. There are local alternatives that do pretty well (BLIK in Poland, Revolut Pay in countries where it's popular) but entering more markets is like pulling teeth because EU throws regulatory obstacles at every step.
That doesn't seem to make a lot of sense? How did Visa & Mastercard manage to go through the "protectionism of EU countries" then?
> How did Visa & Mastercard manage...
I'd bet a combination of:
- Got through before the red tape ramparts were nearly as thick as today
- Ungentle arm-twisting by the US Gov't... at Visa & Mastercard's behest
- Amply greased palms... which can't be traced to Visa or Mastercard. At least not in any jurisdiction which would do anything about it.
> because EU throws regulatory obstacles at every step.
No, the gatekeeping is done by local banks and governments to protect their oligopolies/cartels.
There are many instant-pay apps across Europe and they are intentionally not interoperable outside of local markets. Each local banking oligopoly is trying to fence off competition. The main fear is from smaller neo-banks.
>>No, the gatekeeping is done by local banks and governments to protect their oligopolies/cartels.
If you are pointing the distinction between gatekeeping at the EU level and country level I am not contesting that. It's clear though that the gatekeeping is the problem here (and in many other industries in EU).