The EU is building its own digital payment system that could wreck Apple Pay. The European Central Bank is pushing forward with a Digital Euro project targeted for 2029. This would let people in the Eurozone use a free, public digital wallet for all payments. Unlike services from Visa, Mastercard, Apple, or Google, the Digital Euro would charge zero transaction fees.
The move is framed as a sovereignty issue to reduce reliance on American payment processors. Current data shows international card schemes handle over sixty percent of card transactions in the euro area. The EU has also been aggressively regulating Apple under its Digital Markets Act, forcing open its app ecosystem. Apple faces antitrust fines in Dutch courts and a Swiss investigation over its payment practices.
The Digital Euro would be stored as unprogrammable money with set spending limits. Its free nature makes widespread adoption likely once it launches. This could severely diminish the role and revenue of Apple Pay within the European bloc, attacking a key part of the company's services business.
The move is framed as a sovereignty issue to reduce reliance on American payment processors. Current data shows international card schemes handle over sixty percent of card transactions in the euro area. The EU has also been aggressively regulating Apple under its Digital Markets Act, forcing open its app ecosystem. Apple faces antitrust fines in Dutch courts and a Swiss investigation over its payment practices.
The Digital Euro would be stored as unprogrammable money with set spending limits. Its free nature makes widespread adoption likely once it launches. This could severely diminish the role and revenue of Apple Pay within the European bloc, attacking a key part of the company's services business.
