New Payment System Wero Ensures Instant Money Transfers

Behind Wero lies a network of European banks (Epi). The payment system is set to operate across multiple European countries. Currently, only savings banks and Volks- and Raiffeisenbanks in Germany, along with a bank from Belgium, have adopted the system. However, in the coming months, Deutsche Bank and banks from France and the Netherlands are expected to join.

Money is Instantly Available

After a quick activation, users can send money to other Wero users. All that is needed is the recipient’s phone number. Thomas Rienecker, spokesperson for the German Savings Banks Association, told BILD, “The money is credited to the recipient’s account within ten seconds and can be used immediately. It can also be withdrawn from ATMs right away.” The advantage here is that there is no need for a trustee or a user account with a third-party provider; the payment is instant. This feature could also be appealing to merchants, as the money is always instantly available in their accounts. Another benefit for consumers is the quick and straightforward process. There’s no need to enter long IBANs when transferring money; the recipient’s phone number is sufficient.

Wero Faces Strong Competitors

In Germany, PayPal, Mastercard, and Visa are very popular for online shopping. European financial institutions are concerned that major financial processors are based in the USA, which means bank data flows abroad. Wero aims to provide a European alternative to this situation. However, it remains uncertain whether other EU countries will adopt the Wero system. There are already well-functioning online payment systems like Bizum in Spain, Twint in Switzerland, and Swish in Scandinavia.