Wero, a new payment service backed by major European banks, remains largely unknown and unloved in Germany. Despite the initial campaign, seven out of eight Germans report that they do not know the payment method and only 2 percent have tried Wero so far.
This was reported by Der Spiegel based on research by the comparison portal Verivox. “Wero is currently a flop,” a prominent news channel headlined. The mobile wallet and instant account-to-account payment was launched more than four months ago with an initial campaign, with Germany as the pilot market. Wero is now also live in Belgium and France, with more European countries to follow.
European Payments Initiative
Wero is a product of the European Payments Initiative (EPI), which is supported by the European Commission and has 16 founding shareholders based in Belgium, France, Germany and the Netherlands. The banks are working together to create a pan-European payment system and gain market share from US companies such as PayPal – the online payments market leader in Germany – as well as Mastercard, Visa and Apple. Wero is based on the acquired Dutch online payment system iDEAL, which is the dominant online payment method in the Netherlands.
With Were, European banks are trying to regain ground from American companies.
However, given the weak response from the German public, Der Spiegel concludes that little is likely to change in the near future. One of the reasons is that Wero is not yet available at all major German banks.
Added value
According to Verivox CEO Oliver Maier, Wero currently lacks added value as it only offers the function of sending money from A to B. Wero is expected to be available as a payment method for webshops in the new year and later also in physical blinds. Maier argues that a comprehensive payment solution is needed to ensure real competition for American companies.
Real-time transfers
Wero is based on the European standard for real-time transfers, makes it easy for banks to connect, and allows money to be moved from one account to another within 10 seconds. “It’s simple, hassle-free and secure,” says the Wero website.
“Wero is simple, seamless and secure.”
The payment method is still in development, but the ambition is clear: “Wero aims to become the standard for European consumers and merchants”, according to EPI.