Living in Poland, I have got used to using their local system for payments called BLIK. The way BLIK works is that you access your bank account app, enter a code, get a code back and make a payment at a point-of-sale, ATM, online or anywhere that needs a payment approved. The reason I like it is that you don’t give any card or account details or PIN. It’s a one-time password code (OTP) and, if you want to make it quicker, you give approval to the merchant to store your BLIK access and then all you have to do is enter the OTP without even going through the pre-authorisation stage. Simples!
What has been frustrating me is that BLIK system should be everywhere, but it’s currently only in Poland although, thanks to VIAMO in Slovakia, a mobile payments system provider, and expanded into Romania. However, it should be something that would have been at the heart of the European Payments Initiative (EPI) and now, maybe it will be, if is integrated with Wero. So, thanks to my friends Frank Breuss and Regimantas Maliauskas, who discuss EPI’s Wero and BLIK’s potential to transform the payments landscape in Europe.
EPI's Wero and BLIK: can they finally transform Europe's payment landscape?
By Frank Breuss, CEO and Co-Founder, and Regimantas Maliauskas, Strategic Partnership Manager at Nikulipe
Historically, the European payment landscape has been fragmented, with each country relying on domestic payment methods. Germany had Giropay, the Netherlands uses iDEAL, and Belgium depends on Bancontact. Although solutions like Sofort/Klarna and Trustly emerged, Europe still lacks relevant, bank-supported payment brands that could operate across multiple markets. This fragmentation allowed global players like Apple Pay, Google Pay, and PayPal to gain a strong foothold with their cross-border, user-friendly services.
As pressure mounts for Europe to develop its proprietary unified payment infrastructure, initiatives like the European Payments Initiative (EPI), with its brand, Wero, and the rapidly expanding Polish system, BLIK, are stepping in to fill the gap. EPI’s Wero continues to announce it is live with new banks and countries, aiming for broad European adoption, while BLIK is leveraging its success in Poland to expand into several more markets. At the same time, older systems like Giropay and Paydirekt are being phased out, prompting the question: are we witnessing a lasting revolution in payments or just another short-lived trend?
Past failures: a fragmented legacy
Europe has a history of failed attempts at unified payment solutions. The Monnet Project, PayFair, and MyBank launched with high hopes but ultimately failed. At the same time, established systems like Giropay and Paydirekt are being eliminated. While they have different reasons for failing, they have some main points in common: they often had a limited focus on customer and merchant needs, such as providing a seamless experience across online, in-store, and peer-to-peer (P2P) payments. Second, they could not secure the support of all relevant banks. This limited their growth and appeal, and they never reached broad market adoption.
While creating the Single Euro Payments Area (SEPA) was a significant step towards harmonising cross-border transfers within the Eurozone, Europe still does not act united. Even today, every region does its own thing, and the large European banks are instead prioritising their domestic systems, creating obstacles to achieving a unified European solution. While there is undoubtedly a need for broad solutions, the question remains: can Wero and BLIK overcome the hurdles of regional fragmentation?
A new era: what makes EPI’s Wero and BLIK different?
Unlike earlier initiatives, EPI’s Wero and BLIK are designed to address the needs of modern consumers by offering solutions that work across multiple payment channels: online, in-store, and P2P. BLIK, for instance, has been wildly successful in Poland because it does so across the board, offering users a seamless experience, whether they're paying online, at the point-of-sale (POS), or transferring money to a friend. Such multi-channel solutions are critical in today’s market, as consumers expect frictionless payment experiences regardless of the situation.
What’s also promising is the strong institutional support behind these initiatives. BLIK expands with the massive support of its shareholder banks to additional markets. EPI, particularly, has garnered backing from major European banks, which has been a missing ingredient in previous efforts. This broad support gives EPI and Wero a better chance of scaling across Europe and addressing the fragmentation that has plagued past attempts.
However, institutional backing alone isn’t enough. In the past, too many European payment systems were designed to focus on banks rather than end users. Successful payment methods must first target the needs of consumers and merchants. While customers need user-friendly, secure, and fast payments, merchants need reliable payment solutions, with easy sign-up processes and competitive rates. Just as important, merchants need to trust that these new systems will gain rapid consumer adoption, as otherwise, they will be hesitant to invest in accepting them.
Overcoming national egoism: can EPI and BLIK unite European banks?
While EPI and BLIK show promise, they face significant challenges. One of the biggest hurdles is achieving true cooperation among European banks. History shows that national interests can prevent this.
Another major concern is competition with established global players like Apple Pay and Google Pay, which already have a foothold in Europe and millions of users. Reversing existing consumer habits will be a monumental task. EPI and BLIK must offer distinct advantages, such as lower fees, better (data) security, and superior user experience to persuade consumers and merchants to make this switch.
There is a huge risk for Europe, especially if EPI/Wero continue to absorb more established national payment methods, as they already did with iDEAL and Payconiq. If Wero or BLIK were to fail, Europe could end up with fewer payment solutions than it has today, which would negatively impact both consumers and merchants. To mitigate this risk, it’s vital that multiple initiatives gain traction and that both Wero and BLIK are successful.
Conclusion: the potential for lasting change
There are still significant challenges; bank fragmentation, the dominance of global players, and the need to quickly gain consumer trust – all pose potential roadblocks. Many will doubt the likelihood of success – given Europe’s history of failed initiatives – and that scepticism is understandable. However, we believe that this time there is a real chance for change.
Chris M Skinner
Chris Skinner is best known as an independent commentator on the financial markets through his blog, TheFinanser.com, as author of the bestselling book Digital Bank, and Chair of the European networking forum the Financial Services Club. He has been voted one of the most influential people in banking by The Financial Brand (as well as one of the best blogs), a FinTech Titan (Next Bank), one of the Fintech Leaders you need to follow (City AM, Deluxe and Jax Finance), as well as one of the Top 40 most influential people in financial technology by the Wall Street Journal's Financial News. To learn more click here...
