STELLA Initiative: Pioneering Europe’s Payment Sovereignty with Unified Domestic Schemes#

STELLA’s Core Objectives and Features#

• Unified Payment Ecosystem: STELLA aims to interconnect domestic payment schemes across Europe, allowing consumers to use local cards (e.g., Germany’s Girocard, Italy’s Bancomat) seamlessly abroad. This addresses the €15 billion in annual cross-border transaction fees paid to global card networks, per ECB estimates.
• Cost Efficiency: By leveraging domestic schemes, STELLA reduces merchant fees, which average 1.5–2% for Visa/Mastercard transactions versus 0.2–0.5% for local schemes like Bancomat, per EuroPA data. This benefits merchants and potentially lowers consumer costs.
• Sovereignty and Resilience: The initiative counters reliance on U.S.-based networks, which process 92% of Europe’s card payments, per Apizee. Amid U.S. policy shifts, like Trump’s 2025 tariff threats, STELLA enhances Europe’s financial autonomy. Link
• Technology Integration: STELLA supports modern payment methods, including mobile apps and account-to-account payments, aligning with SEPA instant payment standards. It collaborates with digital solution providers to ensure compatibility with smart terminals and softPOS systems.

Strategic Partnerships#

• Giesecke+Devrient (G+D): Olivier Guiot from G+D, a leader in card manufacturing, emphasized STELLA’s collaborative approach. G+D’s expertise in secure payment technologies, including GPLUSD card production, supports STELLA’s infrastructure for scalable, secure transactions.
• EuroPA and EPI Synergies: STELLA aligns with the EuroPA-EPI collaboration, announced on June 23, 2025, which connects payment apps like Bancomat, Bizum, MB WAY, and Vipps MobilePay across 15 countries, covering 382 million people (84% of the EU and Norway). This partnership enhances STELLA’s reach by leveraging existing interoperable solutions. Link Link
• Broader Ecosystem: STELLA invites card manufacturers, payment processors, and fintechs like Aevi to join, building on Aevi’s device-agnostic payment orchestration platform, which supports smart terminals and softPOS for in-person payments. Link

Market Context and Trends#

• Digital Payment Growth: Europe’s digital payment market is projected to grow at a 12% CAGR through 2030, per Statista, driven by mobile payments (e.g., Bizum’s 25 million users in Spain) and instant payment adoption (SEPA Instant Credit Transfer processed €200 billion in 2024).
• Sovereignty Push: STELLA aligns with broader EU initiatives, like the €10.5 billion IRIS² satellite program and OVHcloud’s sovereign cloud talks with the European Commission, reflecting a strategic shift to reduce U.S. tech dominance amid data privacy and tariff concerns. Link Link
• Regulatory Support: The European Commission and Eurosystem back STELLA’s goals, with the Digital Markets Act and Data Act promoting competition and data control. The ECB’s digital euro draft, designed to respect non-euro area sovereignty, complements STELLA by exploring central bank digital currencies (CBDCs) for cross-border settlements. Link Link
• Challenges from Global Players: Visa and Mastercard’s dominance, with 80% market share in Europe’s card payments, poses a challenge. The ECB’s concerns about stablecoins like USDC and USDT undermining monetary sovereignty highlight the need for STELLA’s localized approach. Link Link

Risks and Opportunities#

• Opportunities:
  • Cost Savings: Merchants could save €10–12 billion annually by shifting to domestic schemes, per EuroPA estimates, boosting competitiveness for SMEs and retailers. Link
  • Consumer Convenience: Cross-border usability of local cards enhances travel and e-commerce, with 70% of Europeans preferring domestic payment methods, per a 2024 ECB survey.
  • Strategic Autonomy: STELLA reduces risks from U.S. policies, like the Cloud Act, which mandates data access for U.S. firms, ensuring Europe’s financial infrastructure aligns with GDPR and local laws. Link
  • Scalability: Integration with EuroPA-EPI and fintechs like Aevi positions STELLA to scale rapidly, potentially covering 90% of EU transactions by 2030.
• Risks:
  • Adoption Barriers: Smaller merchants may resist due to integration costs or lack of awareness, with only 30% of EU SMEs using digital payment solutions, per Eurostat.
  • Competition: Visa and Mastercard’s entrenched networks and loyalty programs could slow STELLA’s adoption, requiring aggressive marketing and incentives.
  • Regulatory Complexity: Harmonizing payment regulations across 27 EU countries, plus Norway, is challenging, with potential delays in scaling non-euro area integration. Link
  • Technological Risks: Cybersecurity threats, like the 2024 ransomware attack on a major European payment processor, underscore the need for robust defenses, which could strain STELLA’s resources.

Conclusion#

STELLA, launched as part of Europe’s payment sovereignty initiative, marks a pivotal step toward reducing reliance on global payment giants like Visa and Mastercard. By integrating domestic schemes like Bon Contact, Girocard, and Bancomat, and partnering with Giesecke+Devrient and EuroPA-EPI, STELLA enables cost-effective, seamless cross-border payments for 382 million Europeans. With digital payments growing 12% annually and EU policies supporting sovereignty, STELLA offers significant opportunities for merchants and consumers, though adoption barriers and competition pose risks. As STELLA gains momentum, it could redefine Europe’s payment ecosystem, enhancing resilience and control by 2030. Businesses should evaluate integration with STELLA alongside platforms like Aevi to optimize payment strategies in this evolving landscape. 1 2 3