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The European Court of Auditors (ECA) has raised concerns regarding the European Union’s (EU) approach to price interventions in the card payment market and its handling of open banking data sharing. The findings come at a time when digital payments for retail sales in the EU have surged, more than doubling in value between 2017 and 2023 to exceed €1 trillion.
Digital payments are essential for the smooth functioning of the EU’s internal market, especially in cross-border transactions, placing a responsibility on EU institutions to ensure their efficiency and effectiveness.
In its report, the ECA acknowledges that the EU’s digital payment policies have made transactions “safer, faster, and cheaper for users.” However, the report critiques several aspects of these policies, particularly regarding the interchange fee cap for card payments and the surcharge ban on card and SEPA payments.
Lack of Clear Criteria and Monitoring Systems
Ildikó Gáll-Pelcz, the ECA member responsible for the audit, highlighted gaps in the legal framework.
“We found that the basic legal acts on digital payments do not stipulate clear criteria for assessing whether price interventions are justified or how long they should apply,” said Gáll-Pelcz. “There are also no requirements for periodic reviews. For some card payment interventions, the European Commission could not demonstrate that the positive effects for consumers clearly outweigh the negative ones.”
The report also criticized the absence of an effective monitoring system, compounded by the Commission’s lack of access to relevant data. This shortfall has left the broader impact of the EU’s digital payment policies largely unmeasured.
Open Banking Framework Criticized
The ECA also questioned the EU’s open banking framework, which obligates firms to provide third-party providers (TPPs) with free access to payment user data. According to the report, this requirement could discourage account data holders from delivering high-quality services.
Additionally, the lack of standardized APIs poses a significant challenge for TPPs, limiting their ability to effectively utilize payment user data.
Future Implications
The report underscores the need for the EU to reassess its digital payment policies and frameworks to ensure they deliver clear benefits for consumers and industry stakeholders. Improved criteria for price interventions, regular reviews, better data access, and the standardization of APIs in open banking could be key to addressing the highlighted issues.
The findings are likely to spark further debate over the balance between regulation, market efficiency, and innovation within the EU’s digital payment ecosystem.
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