Visa-only Games highlights Europe's payments headache

Core Viewpoint - Visa's exclusive partnership with the Olympics highlights the challenges Europe faces regarding payment systems, particularly the dominance of foreign payment providers and the declining use of cash [1]. Group 1: Visa's Role and Market Dynamics - Visa has been the sole card provider for the Olympics since 1986, with a sponsorship deal extended to 2032, emphasizing its monopoly in this high-profile event [1]. - Approximately two-thirds of card transactions in the euro area are processed by international card schemes like Visa and Mastercard, indicating a significant reliance on foreign payment systems [1]. - A spokesperson for Visa stated the company's commitment to enhancing the purchasing experience for Olympic products, despite the growing trend of consumers not carrying cash [1]. Group 2: European Central Bank (ECB) Initiatives - The ECB aims to launch a digital euro by 2029, which is seen as crucial for Europe's economic security and to reduce dependency on non-EU payment providers [1]. - The digital euro is intended to be available for both wholesale and retail payments, functioning offline like cash and online, to maintain control over monetary policy [1]. - Legislative proposals for the digital euro have faced delays in the European Parliament, but recent endorsements from the European Council and Parliament have strengthened the ECB's position [1]. Group 3: Cash Payment Acceptance - Cash payments are still accepted at Olympic venues, with ATM machines available for cash withdrawals, although the trend shows a significant preference for card payments [1]. - The Esselunga grocery chain, located in the Olympic press center, initially did not accept cash but announced it would start accepting cash payments to improve service [1].