The Guardian view on Europe's payments problem: sovereignty starts at the till | Editorial

"After all, if Mr Trump was prepared to test allies' boundaries over Greenland, it is not far-fetched to imagine Visa and Mastercard becoming used against a recalcitrant Europe. The US can turn off payment systems it controls. Russia learned this first-hand after sanctions were rightly applied for its invasion of Ukraine. As up to 60% of Russian retail transactions depended on Visa and Mastercard for authorisation, the ban left many ordinary people stranded without access to funds and unable to buy goods."

"then during her visit to India this week she might ask New Delhi for advice. Within a decade, India has built a digital public infrastructure designed to reduce reliance on foreign-controlled payment networks and insulate its domestic payments from external pressure or sanctions. India's Unified Payments Interface (UPI) could be the answer Ms Lalucq is looking for: a statebacked, universal payment system. The plumbing does not need Visa or Mastercard to be involved."

"UPI has nearzero fees. It is not a wallet but a public standard: banks, fintechs and apps compete on top of it. Card networks never took deep root in India. But UPI has meant the country has leapfrogged straight to mobile app e-cash with shoppers using QR codes for everyday payments. The biggest players are US companies Google Pay and Walmart's PhonePe account for 80% of transactions but they don't control UPI."

A warning that the United States could cut Europe off from international payment systems highlights a strategic vulnerability. The US can influence or disable payment networks it controls, as shown when Visa and Mastercard restrictions disrupted Russian retail after sanctions. Europe faces potential pressure if geopolitical relations sour, prompting calls for a sovereign payments system. India built the Unified Payments Interface (UPI) to reduce reliance on foreign-controlled networks and insulate domestic payments from external coercion. UPI is a public standard with near-zero fees that enables banks, fintechs and apps to compete without card-network dependence, widely enabling mobile QR payments.

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