What’s next for domestic payment schemes?

A recent report by the European Central Bank (ECB) on card schemes stated that card payments had emerged as the dominant electronic payment method in the European Union, accounting for 54% of all non-cash transactions in 2023. 70 billion payments were made this way.¹

This is note-worthy enough; however, the central bank also stated that 61% of these card payments were through international card schemes.² 

Healthy domestic schemes existing alongside the big international players are good for Europe’s payment sovereignty and resilience. In the EU, there is renewed focus on innovations in its domestic payments schemes, so they can continue to grow and keep their clientele. “Customers want the features they associate with the international schemes to be available through the domestic schemes as well. More important, domestic payment options can flexibly accommodate the special needs of local stakeholders, banks, merchants and users alike. An ecosystem where both domestic and international schemes co-exist is ideal,” said Barnabas Ferenczi, Head of Strategy & Product Marketing, for Financial Platforms at G+D.

In this way, users get the best, most efficient and secure payment journeys, while regulators can rest assured they are fostering competition between the various options, as well as resilience.

Challenges before domestic schemes

“How can a country build a diverse and competitive payments ecosystem? How can you make that scheme within your country and have it be sensitive to your own needs, and thus shape the payment narrative?” asked Karagianis Charalampos, Head of Field Experts at G+D. 

To answer that question, let us first consider the challenges facing domestic schemes. Europe provides a helpful context in this regard. As the European Central Bank pointed out,

1. Card payments dominate electronic payments in the European Union. However,
2. international card schemes accounted for over 60% of euro area card transactions in 2022. And,
3. the domestic market share of national card schemes is declining.³

There are historical reasons for this state of affairs, pointed out Charalampos. “Most domestic card schemes in the European market grew out of the need for, and resulting growth of, interoperable ATM networks. With the rise of card payments, the role of domestic schemes has evolved – and has to continue doing so.” 

Many domestic schemes must also address their relative lack of modern features, which has resulted in their losing market share. That certain banks and neobanks issued international card labels has also contributed to this state of affairs.

There are other contributing factors. “Call it a paradox, if you will,” said Ferenczi. “The biggest incentive a domestic scheme offers is its lower cost to merchants. At the same time, its users expect features and functionality that are at least on par with international schemes.” But there may not be as much money available to fund technological upgrades, because the scheme’s rates are so low. 

Further, there has been a lack of integration between the various domestic schemes within the European Union. This is a significant stumbling block to adoption by a cohort of users who are used to living an international lifestyle for work and for leisure. 

Adapting to prosper

A thoroughly up-to-date set of functionalities is critical to finding new users and keeping existing ones, especially when it comes to mobile and online payments. “The focus today is beyond the payment itself and increasingly towards the wider payment experience, both in store and online”, noted Gabrielle Bugat, CEO of G+D ePayments. This remains an issue, at least for those schemes in the European market that are losing ground. 

Of course, there are nations and schemes that buck that trend. France is leading by example, with a “Click to pay” solution for secure and user-friendly ecommerce consumer journeys.

TWINT in Switzerland is another example of a high-functioning domestic scheme that has proved itself against other systems, precisely by offering the solutions local users need, and in the way they want it. It is all but ubiquitous in its parent nation now, and is usable at point of sale (PoS), online, for P2P transactions, and more. It was used for 773 million transactions in 2024.⁴

In Germany, Girocard is the traditional domestic card payment ecosystem. However, Girocard lacks the sort of functionality that users expect these days, from standard online features through pre-authorization till advanced fraud risk management. As Ferenczi explained, “an established system like Girocard can serve as a foundation, precisely because it is widely-recognized and accepted at point-of-sale in shops.” Make what already exists better, in other words, so it builds upon its strengths and expands into newer areas.

The European Payment Initiative (EPI), made up of various banks and other payments players across the region, has developed Wero, an instant payment offering. It is already available across Germany, France, and Belgium, and is due in other European nations soon.⁵ As of late 2025, Wero is in the early phase of scaling up, with around 50 millio users on-boarded (including via acquisitions) primarily focusing on the peer-to-peer use case.

The road ahead

These are issues, no doubt. However, there are success stories that show us that domestic schemes can prosper, provided they hit certain marks. The need for resilience across the ecosystem is compelling: consequently, so is the upside to remaining invested in domestic schemes. 

For such a scheme to remain viable in the long term, it would probably need to answer the following parameters – certainly in the EU.

1. A plastic-only approach wouldn’t be feasible, given the growing ubiquity of digital wallets. A digital offering shouldn’t be an add-on, but rather part and parcel of the domestic scheme.
2. The scheme’s tech stack would ideally be easily integrated into the offerings of fintechs and neobanks– who are currently mostly working with international schemes – so it can reach a growing demographic of digitally forward users.
3. The scheme’s features would need to be on par with those offered by its international peers. Beyond mobile and online functionality, fraud mitigation and consumer protection are also crucial.

“National payment structures could bring additional innovation, more payment options for consumers, and an enriching coexistence of local and international players. This is explicitly not an “either/or” choice, which is never desirable in our globalized world. What we believe in is strategic resilience and open autonomy,” said Ferenczi. “If the right conditions were created for domestic schemes to prosper across the EU; that’s when the ecosystem they enable can truly thrive.” 

Published: 21/04/2026