European banks and credit card processors are working to establish a new pan-European payment network to challenge the dominance of the US payments companies Mastercard and Visa and head off the threat from technology giants such as PayPal, Google and Apple.
The Brussels-based project, called the European Payments Initiative, began in July and is expected to go to market in the EU next year.
Thus far, it has received funding of more than $36 million from sponsors. Its backers include 31 European banks and credit institutions such as Deutsche Bank, UniCredit, BNP Paribas, ING, Societe Generale, Santander and Sabadell. It also has the backing of the European Commission as well as various financial regulators in the bloc.
The National looks at the project and finds out what it means for the digital payments ecosystem in the EU.
What is the European Payments Initiative?
The EPI aims to introduce an end-to-end payment system based on an instant transaction model. It will offer a card to customers, which allows them to carry out in-store, online, cash withdrawal, digital wallet and merchant payments, as well as peer-to-peer transactions.
“The solution aims to become a new standard in payments … as an alternative to existing international payment solutions and schemes,” the EPI said on its website.
“This initiative is in line with recent positions from European public authorities urging banks and payment service providers to build a payment solution on top of the instant payment scheme and to offer an alternative and independent payment system.”
Who is involved in the project?
Thirty-one banks spanning across seven countries and two pan-European third-party acquirers – Worldline and Nets – are currently part of the project.
The initiative is open to more European banks, financial institutions and payment service providers who wish to join. Organisations can apply and join the EPI during the next window by the end of this year.
"Almost 20 years after the introduction of the euro, the moment has come to join forces in a collective effort to provide consumers and merchants with a truly European digital payment solution," Gilles Grapinet, chairman and chief executive of France-based Worldline, said.
Why now?
There have already been previous attempts to challenge the dominance of US companies in this space, such as the Monnet Project encompassing 24 European lenders that launched in 2011, but these were not successful.
However, the EPI has the EU’s backing. Its ambition is to provide a new standard of payments in Europe, offering an independent European alternative to the two major US payment companies.
By joining this initiative, European issuers and acquirers are supporting the strengthening of the single market and the European digital agenda, Joachim Schmalzl, the chairman of the EPI board, said.
“Our aim is to stimulate the growth of a unified Europe by continuously innovating in payments, which is an important underlying feature of our economy,” he added.
The EPI will provide a payments regime “corresponding to European needs and covering the diversity of our European markets on the consumer and merchant side”, Martina Weimert, chief executive of EPI, said.
How big is this market?
The total transaction value of digital payments in Europe is projected to reach $1.17 trillion this year, according to Statista. It is growing at an annual rate of 13.4 per cent and is expected to increase to $1.95tn by 2025.
Currently, nearly 80 per cent of transactions in Europe are handled by Mastercard and Visa, according to EuroCommerce, a group of nearly 6 million retail, wholesale and other trading companies.
What is the timeline?
The EPI is expected to provide a blueprint for a pan-European payments service by September, according to the Financial Times.
"The first real-world applications – a system for electronic real-time payments between consumers – could be launched in early 2022, while a broader payments tool could follow in the second half of next year," Mr Schmalzl told the FT.
Mubadala World Tennis Championship 2018 schedule
Thursday December 27
Men's quarter-finals
Kevin Anderson v Hyeon Chung 4pm
Dominic Thiem v Karen Khachanov 6pm
Women's exhibition
Serena Williams v Venus Williams 8pm
Friday December 28
5th place play-off 3pm
Men's semi-finals
Rafael Nadal v Anderson/Chung 5pm
Novak Djokovic v Thiem/Khachanov 7pm
Saturday December 29
3rd place play-off 5pm
Men's final 7pm
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- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Global state-owned investor ranking by size
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United States
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China
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UAE
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Japan
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Norway
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Canada
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Company%20Profile
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What drives subscription retailing?
Once the domain of newspaper home deliveries, subscription model retailing has combined with e-commerce to permeate myriad products and services.
The concept has grown tremendously around the world and is forecast to thrive further, according to UnivDatos Market Insights’ report on recent and predicted trends in the sector.
The global subscription e-commerce market was valued at $13.2 billion (Dh48.5bn) in 2018. It is forecast to touch $478.2bn in 2025, and include the entertainment, fitness, food, cosmetics, baby care and fashion sectors.
The report says subscription-based services currently constitute “a small trend within e-commerce”. The US hosts almost 70 per cent of recurring plan firms, including leaders Dollar Shave Club, Hello Fresh and Netflix. Walmart and Sephora are among longer established retailers entering the space.
UnivDatos cites younger and affluent urbanites as prime subscription targets, with women currently the largest share of end-users.
That’s expected to remain unchanged until 2025, when women will represent a $246.6bn market share, owing to increasing numbers of start-ups targeting women.
Personal care and beauty occupy the largest chunk of the worldwide subscription e-commerce market, with changing lifestyles, work schedules, customisation and convenience among the chief future drivers.
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Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
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WWE World Heavyweight ChampionshipAJ Styles (champion) v Shinsuke Nakamura
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United States Championship Jeff Hardy (champion) v Jinder Mahal
SmackDown Tag Team Championship The Bludgeon Brothers (champions) v The Usos
Raw Tag Team Championship (currently vacant) Cesaro and Sheamus v Matt Hardy and Bray Wyatt
Casket match The Undertaker v Rusev
Singles match John Cena v Triple H
Cruiserweight Championship Cedric Alexander v Kalisto
The specs
Engine: 6.2-litre supercharged V8
Power: 712hp at 6,100rpm
Torque: 881Nm at 4,800rpm
Transmission: 8-speed auto
Fuel consumption: 19.6 l/100km
Price: Dh380,000
On sale: now
Electric scooters: some rules to remember
- Riders must be 14-years-old or over
- Wear a protective helmet
- Park the electric scooter in designated parking lots (if any)
- Do not leave electric scooter in locations that obstruct traffic or pedestrians
- Solo riders only, no passengers allowed
- Do not drive outside designated lanes
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
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The bio
Favourite vegetable: Broccoli
Favourite food: Seafood
Favourite thing to cook: Duck l'orange
Favourite book: Give and Take by Adam Grant, one of his professors at University of Pennsylvania
Favourite place to travel: Home in Kuwait.
Favourite place in the UAE: Al Qudra lakes
Gothia Cup 2025
4,872 matches
1,942 teams
116 pitches
76 nations
26 UAE teams
15 Lebanese teams
2 Kuwaiti teams
Naga
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Selected fixtures
All times UAE
Wednesday
Poland v Portugal 10.45pm
Russia v Sweden 10.45pm
Friday
Belgium v Switzerland 10.45pm
Croatia v England 10.45pm
Saturday
Netherlands v Germany 10.45pm
Rep of Ireland v Denmark 10.45pm
Sunday
Poland v Italy 10.45pm
Monday
Spain v England 10.45pm
Tuesday
France v Germany 10.45pm
Rep of Ireland v Wales 10.45pm
How to vote
Canadians living in the UAE can register to vote online and be added to the International Register of Electors.
They'll then be sent a special ballot voting kit by mail either to their address, the Consulate General of Canada to the UAE in Dubai or The Embassy of Canada in Abu Dhabi
Registered voters mark the ballot with their choice and must send it back by 6pm Eastern time on October 21 (2am next Friday)