Digital payments in the European Union (EU) have seen significant growth in recent years, becoming safer, faster, and more cost-effective. According to a report by the European Court of Auditors released on Thursday, the total value of digital payments in the EU more than doubled between 2017 and 2023, reaching over €1 trillion in 2023. However, the report highlights that EU regulations are not always fully enforced, with some countries still refusing to process payments from foreign accounts.
Rapid Growth and Lower Costs for Consumers
In 2023, consumers paid an estimated €5–6 billion for digital payments made using bank cards, according to the European Court of Auditors. The report notes that the number of digital transactions is expected to continue growing, emphasizing the importance of efficient and well-regulated payment systems. Progress has been made in recent years due to EU legislation designed to enhance digital payment systems, but several challenges remain.
Cross-Border Payment Barriers Persist
One of the main issues highlighted in the report is IBAN discrimination, where payments from foreign bank accounts are rejected. EU regulations grant consumers the right to make euro-denominated payments from any account within the union, regardless of their location. However, countries like Spain and France frequently refuse such transactions, posing a significant problem for consumers across the EU.
Gaps in Enforcement and Regulation
Despite efforts by the European Commission to address IBAN discrimination, the report indicates that more work is needed. Loopholes in the law and insufficient collaboration between enforcement authorities have allowed the issue to persist. To resolve this, the European Court of Auditors recommends that the European Commission implement stronger enforcement measures to ensure compliance with existing regulations.
The findings underscore the need for continued efforts to streamline and regulate digital payments across the EU, ensuring that all consumers can benefit from the convenience and cost savings these systems offer.