EU lawmakers approved a digital euro that could cut Visa’s 61% share of euro-area card payments and reduce merchant fees by shifting transactions to ECB-backed central bank money. Visa is launching an AI-driven cashback program to deepen ecosystem engagement and drive value for banks and merchants.
The Economic and Monetary Affairs Committee approved legislation for a digital euro, aiming to strengthen Europe’s financial sovereignty by offering consumers a central bank–backed digital currency with online and offline functionality. Data shows Visa and Mastercard process 61% of card payments in the euro area and nearly all cross-border transactions, and the new system would impose yet-to-be-determined holding limits while promising lower merchant fees.
Visa has introduced an AI-powered cashback offering that personalizes rewards based on consumer spending patterns and bank targets. The program is designed to increase transaction volumes across its network, enhance merchant and bank partnerships, and reinforce Visa’s value proposition amid emerging payment alternatives.
