Banks moot European payment system to rival Visa, Mastercard: sources

Twenty European banks are working on setting up a pan-European payment system to challenge the dominance of Visa, Mastercard and technology companies such as Google and PayPal, European banking and government sources confirmed on Tuesday.The Pan European Payment System Initiative (PEPSI) would handle all forms of cashless transactions, the sources said. Carlo Bovero, global cards and retail payments manager at BNP Paribas, had alluded to it Tuesday during a conference organised by the banking magazine Revue Banque in Paris.Bovero said banks "representing a big part of Europe" were involved in the discussions.A French banking source close to the subject said the idea came from the European Central Bank, which has been pushing for a system to allow Europeans transfer money to each other instantly.