Euro Alliance of Payment Schemes

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The Euro Alliance of Payment Schemes (EAPS) was an international alliance of European bank and interbank networks that had aimed to creating a pan-European debit card system in the Single Euro Payments Area to rival Visa and Mastercard using existing country specific systems. It was launched in 2007 with the support of the European Union but failed and was abandoned sometime after 2013. [1]

Contents

History

The Brussels-based consortium, formally announced in July 2007, [2] included such members as Electronic Cash in Germany, Bancomat/PagoBancomat in Italy, Multibanco in Portugal, EURO 6000 in Spain, LINK in the United Kingdom and EUFISERV, an ATM system operated internationally by the European Savings Banks Group. [3] [4] Though not allying itself with EAPS, the European Central Bank spoke in February 2007 in favor of the work being done by EAPS as "the first step towards a consolidation of card schemes, leading to a European card scheme". [5] Prior to the implementation of the EAPS alliance, only MasterCard/Maestro and Visa/V Pay debit cards could be used abroad in Europe. [6] EAPS was first initiated particularly to challenge MasterCard's hold on international debit payments. [7]

According to European Card Review in 2007, EAPS was expected to play a less pivotal role in spreading the Single Euro Payments Area initiative than larger schemes such as the "Falkensteiner Group" which they believed to include UniCredit, Société Générale, ING and Deutsche Bank, but was nevertheless capable of a "marginal" role. [8] The "Falkensteiner Runde" (Falkensteiner Circle) - according to the Lafferty Group to consist of ABN AMRO, Allianz Dresdner, ING Bank, Rabobank, UniCredit, Deutsche Bank, Société Générale and Commerzbank - was discussing an alternative interbank network based on the German Girocard network joined by the French Carte Bancaire network. [9] About the same time in early 2007 another initiative was formed in the "PayFair" company in Brussels to implement the European Payment Scheme. [9] This effort was building an infrastructure from scratch focussing at first to rebuild the POS (i.e. non-bank) infrastructure in Belgium and Netherlands as of 2008 and expanded to Germany during 2010 via "easycash" terminals. [9] [10] [11] Founded in 2008, the "Monnet Project" was unveiled in Frankfurt in 2009 listing the same members as reported earlier on the Falkensteiner Circle. [10] [12] Later reports cite these three elements - Monnet Project, PayFair scheme, EAPS council - as the driving forces behind SEPA-centric alternatives for debit card networks. [13]

Meanwhile, the EAPS announced the bilateral cooperation of ATM interbank networks, namely the German Girocard acceptance at Italian Bancomat ATMs, [14] Italian Bancomat card acceptance at German Girocard ATMs [14] and German Girocard acceptance at UK LINK ATMs. [15] Independently the European savings banks had created the pan-European EUFISERV network to mutually accept debit cards at their ATMs - Eufiserv was a founder of the EAPS council.

On May 5, 2010, the Monnet Project held a meeting in Madrid to endorse a European Card Project. From the 30 banks that were attending it occurred that 12 banks from 8 countries volunteered to join a consortium phase to detail the technical requirements and to prepare treaties on the foundation of a new bankcard payment company. [16] The ECB welcomed these steps pointing to the China UnionPay example that a new bankcard brand can quickly gain acceptance with China UnionPay being accepted in 29 European countries plus 60 more countries worldwide) [17] It was predicted that by 2010 the results of the consortium phase would lead into a definite decision to build a new bankcard infrastructure, this was not to be the case. [12] [16]

The project failed and was abandoned at some time after this. [1]

Related Research Articles

<span class="mw-page-title-main">Debit card</span> Card used for financial transactions, usually without a credit line

A debit card, also known as a check card or bank card, is a payment card that can be used in place of cash to make purchases. The card usually consists of the bank's name, a card number, the cardholder's name, and an expiration date, on either the front or the back. Many of the new cards now have a chip on them, which allows people to use their card by touch (contactless), or by inserting the card and keying in a PIN as with swiping the magnetic stripe. These are similar to a credit card, but unlike a credit card, the money for the purchase must be in the cardholder's bank account at the time of the purchase and is immediately transferred directly from that account to the merchant's account to pay for the purchase.

<span class="mw-page-title-main">Mastercard</span> American multinational financial services corporation

Mastercard Inc. is the second-largest payment-processing corporation worldwide. It offers a range of payment transaction processing and other related-payment services. Its headquarters are in Purchase, New York. Throughout the world, its principal business is to process payments between the banks of merchants and the card-issuing banks or credit unions of the purchasers who use the Mastercard-brand debit, credit and prepaid cards to make purchases. Mastercard has been publicly traded since 2006.

<span class="mw-page-title-main">Giro (banking)</span> Payment transfer from one bank account to another bank account and initiated by the payer

A giro transfer, often shortened to giro, is a payment transfer from one current bank account to another bank account and initiated by the payer, not the payee. The debit card has a similar model. Giros are primarily used in Europe; although electronic payment systems exist in the United States, it is not possible to perform third-party transfers with them. In the European Union, there is the Single Euro Payments Area (SEPA), which allows electronic giro or debit card payments in euros to be executed to any euro bank account in the area.

<span class="mw-page-title-main">Visa Debit</span> Debit card

Visa Debit is a major brand of debit card issued by Visa in many countries around the world. Numerous banks and financial institutions issue Visa Debit cards to their customers for access to their bank accounts. In many countries the Visa Debit functionality is often incorporated on the same plastic card that allows access to ATM and any domestic networks like EFTPOS or Interac.

A payment system is any system used to settle financial transactions through the transfer of monetary value. This includes the institutions, payment instruments such as payment cards, people, rules, procedures, standards, and technologies that make its exchange possible. A common type of payment system, called an operational network, links bank accounts and provides for monetary exchange using bank deposits. Some payment systems also include credit mechanisms, which are essentially a different aspect of payment.

<span class="mw-page-title-main">UnionPay</span> Chinese financial services company

UnionPay, also known as China UnionPay or by its abbreviation, CUP or UPI internationally, is a Chinese state-owned financial services corporation headquartered in Shanghai, China. It provides bank card services and a major card scheme in mainland China. Founded on 26 March 2002, China UnionPay is an association for China's banking card industry, operating under the approval of the People's Bank of China. It is also an electronic funds transfer at point of sale (EFTPOS) network, and the only interbank network in China that links all the automatic teller machine (ATMs) of all banks throughout the country. UnionPay cards can be used in 181 countries and regions around the world.

<span class="mw-page-title-main">Payment card</span> Card issued by a financial institution that can be used to make a payment

Payment cards are part of a payment system issued by financial institutions, such as a bank, to a customer that enables its owner to access the funds in the customer's designated bank accounts, or through a credit account and make payments by electronic transfer with a payment terminal and access automated teller machines (ATMs). Such cards are known by a variety of names including bank cards, ATM cards, client cards, key cards or cash cards.

<span class="mw-page-title-main">Single Euro Payments Area</span> System for money transfers within the European Union area

The Single Euro Payments Area (SEPA) is a payment integration initiative of the European Union for simplification of bank transfers denominated in euro. As of 2020, there were 36 members in SEPA, consisting of the 27 member states of the European Union, the four member states of the European Free Trade Association, and the United Kingdom. Some microstates participate in the technical schemes: Andorra, Monaco, San Marino, and Vatican City.

<span class="mw-page-title-main">ATM card</span> Type of bank card providing access to Automatic Teller Machines

An ATM card is a dedicated payment card card issued by a financial institution which enables a customer to access their financial accounts via its and others' automated teller machines (ATMs) and, in some countries, to make approved point of purchase retail transactions. ATM cards are not credit cards or debit cards, however most credit and debit cards can also act as ATM cards and that is the most common way that banks issue cards since the 2010s.

An interbank network, also known as an ATM consortium or ATM network, is a computer network that enables ATM cards issued by a financial institution that is a member of the network to be used to perform ATM transactions through ATMs that belong to another member of the network.

<span class="mw-page-title-main">Malaysian Electronic Payment System</span>

The Malaysian Electronic Payment System (MEPS) is an interbank network service provider in Malaysia. In August 2017, MEPS merged with Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear) to form Payments Network Malaysia Sdn Bhd (PayNet).

ATM usage fees are the fees that many banks and interbank networks charge for the use of their automated teller machines (ATMs). In some cases, these fees are assessed solely for non-members of the bank; in other cases, they apply to all users. There is usually a higher fee for use of White-label ATMs rather than bank owned ATMs.

<span class="mw-page-title-main">Multibanco</span>

Multibanco is a portuguese interbank network. It is the largest interbank network in Portugal owned and operated by SIBS , that links the ATMs of 27 banks in Portugal, totaling 12,700 machines as of December 2014. The bank members of Multibanco control the SIBS. Multibanco is a fully integrated interbank network. One of the most notable characteristics of Multibanco is the wide range of services that can be utilised through its machines.

<span class="mw-page-title-main">Eufiserv</span> European interbank network

EUFISERV is a European interbank network connecting the ATMs of savings banks in Austria, Belgium, the Czech Republic, Finland, France, Germany, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, and Switzerland. It is the largest and the only international credit union-owned interbank network in Europe.

<span class="mw-page-title-main">Girocard</span> Interbank network and debit card service

girocard is an interbank network and debit card service connecting virtually all German ATMs and banks. It is based on standards and agreements developed by the German Banking Industry Committee.

V Pay is a Single Euro Payments Area (SEPA) debit card for use in Europe, issued by Visa Europe. It uses the EMV chip and PIN system and can be co-branded with various national debit card schemes such as the German Girocard or Italy's PagoBancomat.

Vocalink is a payment systems company headquartered in the United Kingdom, created in 2007 from the merger between Voca and LINK. It designs, builds and operates the UK payments infrastructure, which underpins the provision of the Bacs payment system and the UK ATM LINK switching platform covering 65,000 ATMs and the UK Faster Payments systems.

<span class="mw-page-title-main">Bancomat (interbank network)</span> Italian interbank network and debit card

Bancomat is an Italian interbank network for cash withdrawals widely used in Italy. It was first introduced in 1983 for use with automated teller machines.

<span class="mw-page-title-main">SIA S.p.A.</span>

SIA S.p.A. is an Italian company operating in the area of ICT, providing services to the banking and finance sector in addition to platforms for financial markets and e-payment services.

<span class="mw-page-title-main">European Payments Initiative</span> Pan-European payment system

The European Payments Initiative (EPI), previously known as the Pan-European Payments System Initiative (PEPSI), is a European Central Bank-backed payment-integration initiative aiming to create a pan-European payment system and interbank network to rival Mastercard and Visa, and eventually replace national European payment schemes such as France's Carte Bancaire and Germany's Girocard.

References

  1. 1 2 "Payments Competition In The World of High Risk Payment Processing". EMB. March 24, 2017.
  2. ↑ Press release, card-alliance.eu. (November 2007) Retrieved 2008-08-04. Archived February 20, 2009, at the Wayback Machine
  3. ↑ SEPA for cards on way to reality in Europe. (23 May 2007) atmarketplace.com. Retrieved 2008-08-04.
  4. ↑ About Archived 2008-11-21 at the Wayback Machine , EUFISERV official site]
  5. ↑ Tumpel-Gugerell, Gertrude, Member of the Executive Board of the ECB Colloquium. (February 13, 2007) The European Central Bank's view on SEPA [ permanent dead link ] bancaditalia.it Retrieved 2008-08-04.
  6. ↑ Kenny, Peter. (June 21, 2007)Banks announce low overseas debit withdrawal Archived 2008-08-21 at the Wayback Machine thriftyscot.co.uk. Retrieved 2008-08-04.
  7. ↑ Wissenbach, Ilona. (June 20, 2007) European banks agree corssborder Mastercard rival Reuters. Retrieved 2008-08-04.
  8. ↑ Debit cards: pressure continues for third scheme in Europe (2007) European Card Review. Retrieved 2008-08-04 Archived July 26, 2008, at the Wayback Machine
  9. 1 2 3 ""PaySys SEPA Newsletter - Jan. 2008"" (PDF). Archived from the original (PDF) on 2016-01-24. Retrieved 2010-08-15.
  10. 1 2 IT, Corporate Center-Research. "Globale Suche". Deutsche Bank Research.
  11. ↑ PayFair news Archived 2010-08-16 at the Wayback Machine , "22 Sept 2009 - EasyCash, key PayFair partner in Germany" Bergisch Gladbach
  12. 1 2 "PROJET MONNET - Une vingtaine de banques européennes prévoient de créer un nouveau système de cartes bancaires en Europe", press release, 6. May 2010
  13. ↑ "A grand scheme" Archived 2011-07-20 at the Wayback Machine , Interview with EAPS board chairman Ugo Bechis, by Ronan McCaughey, 1. January 2010
  14. 1 2 "Archived copy" (PDF). Archived from the original (PDF) on 2011-07-20. Retrieved 2010-08-15.{{cite web}}: CS1 maint: archived copy as title (link)
  15. ↑ "Archived copy" (PDF). Archived from the original (PDF) on 2011-07-20. Retrieved 2010-08-15.{{cite web}}: CS1 maint: archived copy as title (link)
  16. 1 2 "Infobrief SEPA – Euro-Zahlungsverkehr - Nr.12" [ permanent dead link ], May 2010
  17. ↑ "SEPA for cards: more than a symbol of SEPA’s success", Speech by Gertrude Tumpel-Gugerell, Member of the Executive Board of the ECB, at the Monnet Symposium organised by The Monnet Project, Madrid, 5 May 2010

See also

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