Why 40% of EU Payment Firms Are Leaving Free Money on the Table

Alejandro Martínez · 2026-09-22

Imagine having a passport that lets you work in 27 countries without extra paperwork. Now imagine never using it. That's exactly what's happening with nearly four in ten European payment firms and their EU passport. It's a head-scratcher, right? ### What's an EU Passport Anyway? In simple terms, the EU passport allows financial services firms licensed in one member state to operate across the entire European Economic Area (EEA) without needing separate approvals in each country. It's like a master key for the European market. But according to a recent report, 40% of payment firms have never turned that key. Why would they ignore such a powerful tool? The reasons are as varied as the companies themselves. Some are small startups focused on their home market. Others might be intimidated by the regulatory complexity. And some simply don't realize the opportunity. ### The Hidden Costs of Not Using It Not using the passport can be costly. Expanding into new markets without it means dealing with different regulators, licenses, and compliance rules in each country. That's a lot of time and money—resources that could be spent on growth. Take a fintech in Germany, for example. If they want to offer services in France, they'd normally need to go through French regulators. With the passport, they can just notify their home regulator and start operating. The difference is huge: months of paperwork versus a few weeks. > "The EU passport is one of the most underutilized assets in European fintech," says a Brussels-based policy advisor. "Firms that use it effectively can scale across the continent at a fraction of the cost." ### Why Some Firms Hesitate So why the hesitation? For starters, many payment firms are young and still finding their footing. They might not have the bandwidth to think about cross-border expansion. Others worry about regulatory differences—even with the passport, local rules on things like anti-money laundering can vary. Then there's the fear of the unknown. Operating in a new country means new customers, new competitors, and new risks. It's easier to stick with what you know. But in the fast-moving world of payments, playing it safe can mean falling behind. ### The Wero Factor Enter Wero, the new European payment initiative backed by major banks. Wero aims to create a unified payment system across Europe, making it easier for consumers and businesses to pay across borders. For payment firms, Wero could be a game-changer. But to participate, they'll likely need to operate in multiple markets—and that's where the EU passport comes in. If you're a payment firm sitting on the sidelines, now's the time to dust off that passport. The European payments landscape is consolidating, and those who move early will have a competitive edge. ### What This Means for You Whether you're a payment professional in the US watching European trends or a fintech enthusiast, the lesson is clear: don't leave opportunities unused. The EU passport is a powerful tool, but only if you use it. As the saying goes, "You miss 100% of the shots you don't take." So, if you're in the European payments space, ask yourself: are you part of the 40%? If so, it might be time to change that.