This PoV on European Payment Initiative (EPI) outlines its transformative impact on the European payments landscape. EPI, a consortium of 16 European banks and financial services providers, aims to create a unified, instant, and cashless payment ecosystem across Europe. This initiative targets various segments including P2P, P2Pro, e-commerce, and m-commerce, aiming to replace cash, improve payment traceability, and enable seamless payments through standardized and secure mechanisms like QR codes and mobile contacts.

The PoV highlights the benefits of EPI across the payment value chain. Merchants and online retailers can expect increased conversion rates and embedded finance options such as customer loyalty programs and buy now, pay later (BNPL) services. Customers will enjoy 24/7 payment access with fewer touchpoints, reducing queuing times at checkout counters. Banks can potentially lower fees compared to existing card-based payment systems. The document also emphasizes the growing preference for digital wallets among European consumers, driven by factors like payment security, scheme longevity, and sustainability impacts.

Since its launch, EPI has enrolled over 14 million users and processed more than 8 million transactions. Initially focused on P2P payments, EPI plans to expand to P2Pro transactions and support e-commerce and m-commerce payments. The initiative aims to introduce value-added services like loyalty programs and budgeting tools, providing users with a real-time overview of their account balance and spending. EPI's long-term success hinges on broader industry participation, regulatory support, and technological innovation to address interoperability challenges.