Lagarde Urges EU to Break Dependence on U.S. Payment Giants Visa and Mastercard

European Central Bank President Christine Lagarde has called on the European Union to reduce its reliance on major U.S. payment networks like Visa and Mastercard, advocating for the development of home-grown platforms to ensure financial sovereignty.

In an interview with Irish broadcaster Newstalk, Lagarde emphasised the urgency of creating independent European payment systems. Speaking on The Pat Kenny Show, she said: “Visa, Mastercard, PayPal and Alipay are all controlled by American or Chinese companies. We should make sure there is a European offer. Just in case. You never know.”

Lagarde warned that Europe’s digital payment infrastructure is currently dependent on foreign-controlled systems, even for routine transactions. “When you use your card or your phone for digital payments, it typically goes through a foreign system,” she explained. “The whole infrastructure for credit and debit is not European.”

While acknowledging that these companies operate under EU regulations, Lagarde insisted that the bloc needs to assert greater control. “Payments should be under our control,” she said.

Her remarks come as the European Union seeks to reinvigorate its Capital Markets Union (CMU) project—an initiative designed to integrate financial markets across member states. The CMU aims to simplify cross-border funding, allowing capital to flow more freely across the EU. By doing so, the project intends to expand funding opportunities for businesses and improve the way individuals save and invest.

Lagarde suggested that further progress on the CMU could also facilitate deeper economic integration within the bloc and alleviate some of the pressure placed on the ECB. She noted that a more cohesive capital market would help lay the groundwork for a potential future fiscal union.

Citing research from the European Parliamentary Research Service, Lagarde highlighted the potential economic gains of completing such integration. According to their estimates, deeper financial integration could boost EU GDP by as much as €2.8 trillion by 2032. Additionally, completing the Economic and Monetary Union could deliver more than €321 billion in added economic output.

Lagarde’s comments were made shortly before former U.S. President Donald Trump announced new tariffs on EU imports. When asked how the EU should respond to the trade measures, she refrained from offering a specific strategy but noted the potential consequences: “The impact will be negative anyway the world over,” she said. “Its scale and duration will depend on the scope, the products targeted, and how long it lasts.”

By fLEXI tEAM