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Cash: Europe's payment scheme

August 9, 2013 by Ron Delnevo — Chairman, Cash and Card World

The European Commission has for many years been concerned that the two international card schemes — Visa and MasterCard — are controlled from outside Europe.

Surprisingly, Europe's commercial banks have been unable to devise a credible plastic solution to compete in the world of card capers.

It is fortunate therefore that Europe has a viable alternative payment scheme — cash.

Europeans have steadfastly refused to be seduced by the dazzling marketing of the Terrible Twins of Planet Plastic. They have seen behind the glossy cover and have been horrified by the APR!

Take the example of Germany, by far the most successful of the European economies. Germans simply won't buy into cards. Around 70 percent of all purchases are still made with cash and using a credit card is regarded as close to insanity.

Given the importance of cash to Europeans, the Commission’s new draft European Payments Directive, issued within the last couple of weeks, is more than a little puzzling.

This document sprawls over more than 100 pages but the most important line is on page 11, where it is stated that there is a need to see "a greater use of payment cards instead of cash."

Those of us who support cash — and choice, freedom and independence — will never accept that it is appropriate for the European Commission to be promoting a greater use of cards.

What we all need around our planet is more choice of payments methods, all operating on a level playing field that allows no vested interest significant control.

I am sure the European Commission will amend their draft directive in due course to remove any reference to a preference for cards. I shall certainly be leaving no ear unbent in persuading them to make such an amendment!

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About Ron Delnevo

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