??? Will "Pay by Bank" put card networks in trouble?

Today, I’m looking into Europe’s new payment initiative, Wero. What exactly is Wero, and can it really challenge Visa and Mastercard??

Why are major banks backing this effort? And what does this mean for consumers looking for new payment options?

Let’s figure out what’s happening in Europe’s payments scene.

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??? Will "Pay by Bank" put card networks in trouble?

For years, paying with Visa or Mastercard has been the default choice for millions of people across Europe.?

Whether you're booking a hotel in France or grabbing a coffee in Germany, chances are you’re using one of these American giants to make the transaction.

But a group of major European banks has decided it’s time for a change.?

Now, there’s a new player quietly emerging– Wero.

Wero is a project backed by some of the biggest banks in Europe, including BNP Paribas, Deutsche Bank, and payment processor Worldline.?

It allows people to make payments directly from their bank accounts—without needing a Visa or Mastercard.?

Instead of paying with a card and waiting a few days for the transaction to clear, Wero aims to offer instant payments from one bank account to another, across borders.?

So, if you’re a German customer booking a hotel in France, you can settle the bill immediately from your bank account without involving a card network.

Why Was Wero Developed?

1. Financial Sovereignty

After Visa and Mastercard pulled out of Russia following its invasion of Ukraine, European governments and businesses began to rethink how much they rely on these American companies for basic payment infrastructure.

Wero was developed to offer Europe more control over their financial infrastructure.

2. Cut Down on Fees Merchants typically pay around 3% in fees for credit card transactions, with interchange fees reaching up to 4% depending on the transaction type.

But Pay by Bank reduces costs by up to 72% compared to card payments, with fees often ranging from 1% to 1.5% of the transaction amount.

Wero is still in its early days, but it has big plans to change how Europeans pay. Plus, it reflects the growing momentum of open banking around the world.

Similar Moves in the U.S.

Interestingly, this shift away from card networks isn’t just happening in Europe.?

In the U.S., Walmart, the world’s largest retailer, is also exploring ways to bypass Visa and Mastercard with its own pay-by-bank system.

Much like Wero, Walmart’s new feature will allow customers to pay directly from their bank accounts, without needing a card.

Why is Walmart doing this?

Just like European businesses, U.S. merchants are frustrated with the fees they have to pay every time someone swipes a card.?

For big companies like Walmart, those fees add up to a significant chunk of their revenue.

Walmart’s system is set to launch in 2025 and will connect to U.S. payment networks like The Clearing House’s RTP and FedNow, which are designed for instant payments between bank accounts.

So, I think we’ll be seeing more initiatives like this in the coming months that really signal the rise of open banking.

?? Can open banking providers truly compete with card networks?

?? Valu partners with ShipBlu and PayTabs Egypt to improve e-commerce payments via the myBlu app.

?? PayerMax and Saudi Awwal Bank partner to boost digital payments by simplifying merchant onboarding and enabling smooth global transactions.

?? InvestGB partners with Avaloq to upgrade digital wealth management with advanced, cloud-based solutions.

??QR payments are rapidly growing in Southeast Asia, led by Thailand, Malaysia, and Cambodia, driven by rising smartphone use and cross-border payment systems.

?? Amplify Growth Partnership launches a $100 million growth debt fund for tech companies in the MENA region.

?? India's NPCI is negotiating UPI-based digital payment systems in Africa and South America, aiming for two launches by early 2027.

?? Walmart offers instant “Pay by Bank” payments for online purchases , letting customers pay directly from their bank accounts without using card networks.

?? CRIF and Ozone API partner to improve financial services by integrating credit systems with open banking solutions.

?? Bitget Wallet has launched OmniConnect, allowing Telegram Mini-Apps to easily connect to its wallet for smooth transactions across multiple blockchains.

?? Bybit has surpassed 50 million users in 40 days , while expanding Web3 integration to over 130 million wallet addresses.

?? Fake crypto wallet on Google Play steals $70,000 from users after 10,000 downloads.

?? Japan is set to review its crypto regulations , which could open the door for domestic funds to invest in digital assets, according to Bloomberg.

?? Saudi Arabia's Mila Celebrations raises $227,000 in a pre-seed round to expand its event planning platform into the broader GCC market.

?? Egypt’s EdVentures, the VC arm of Nahdet Misr Group, has invested in eight new edtech startups, including Elkheta and Saikoro, which will join its business accelerator program .

?? Iraq's q-commerce platform Padash has raised $125,000 in pre-seed funding to expand operations in Erbil and improve its mobile app.

?? UAE-based climatetech Coral has closed a $3 million Seed round to upgrade its carbon emissions management platform, scale operations, and expand its team.

?? Saudi Arabia's SHIFT has raised $82.8 million from Merak Capital to improve its tech-focused mobility solutions, operating in 57 cities with a fleet of over 12,000 vehicles.

?? The EBRD has invested $3 million in Ibtikar Fund II, which raised $25 million to support early-stage Palestinian tech companies and promote job creation.

Blockchain Payments– A Fresh Start: How can blockchain reshape global payments? This report takes a closer look at shortcomings of our current payment systems and shows the benefits of stablecoins for near-instant settlements. With big players like Visa already exploring blockchain solutions and platforms like Binance Pay rapidly growing, there’s real potential for better transparency and access in payments.? However, challenges like scalability and regulatory issues still exist. Click here to read the full report.

Now, a quick break for your wellness. Chief Wellness Officer at FAB Diego Carrete is on a mission to help executives get fit, increase their energy, and live longer.

Today, he explains how to combat loneliness in the social media era.

Hello there,?

Here are some nutrition blunders I've learned over the years:

1. Calories Count, But They’re Just Part of It:

While keeping track of calories is important, it’s not just about the numbers. You can’t out-train a bad diet. Focus on the quality of your food, not just the quantity.

2. Watch Out for “High in Fiber” Labels:

Not all carbs are equal. Refined carbs can spike blood sugar, while whole grains and veggies keep you fuller longer. Whole foods are always the better choice.

3. Protein Timing Matters:?

Protein is crucial for muscle repair and metabolism. Aim for 3-4 servings throughout the day, and if you’re plant-based, combine protein sources to get all essential amino acids.

4. Fat Isn’t the Enemy:?

Healthy fats are essential for brain function and hormone production. Opt for sources like olive oil and avocados while avoiding processed fats.

5. “No Added Sugar” Doesn’t Tell the Whole Story:

Sugar is sugar, whether added or naturally occurring. Whole fruits are better than juices because they contain fiber that slows absorption.

Bonus Tip: Stay hydrated, especially if you're consuming more salt. Drinking enough water helps balance sodium and glucose levels, so keep your water intake up!

That’s it for now. Found this helpful? Share this with someone who needs it. See you next week, where we'll talk about the truth about "No Added Sugar" foods.?

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