The European Court of Auditors has expressed concerns regarding the EU’s approach to price interventions in the card market and its methods for open banking data sharing.
Digital payments for retail sales in the EU have seen tremendous growth, more than doubling in value from 2017 to 2023, surpassing €1 trillion. These digital transactions are essential for the smooth operation of the EU’s internal market, especially in cross-border contexts, which increases the authority’s responsibility to ensure their effective functioning.
In a recent report, the European Court of Auditors noted that the EU’s strategies have contributed to making digital payments “safer, faster, and cheaper for users.” However, the report highlights issues with the EU’s interventions regarding the interchange fee cap for card payments and the surcharge ban on both card and Sepa payments.
Ildikó Gáll-Pelcz, an ECA member overseeing the audit, remarked, “We found that the basic legal acts on digital payments do not include clear criteria for determining whether price interventions are justified or for how long they should remain in effect. Additionally, there are no requirements for periodic reviews.” She also noted that the European Commission was unable to demonstrate that the benefits of some card payment interventions outweighed the drawbacks.
Moreover, the report points out that the impact of the EU’s digital payment policies is largely unclear because the Commission has not established an effective monitoring system and lacks access to the necessary data.
The court further questions the EU’s open banking framework, particularly its requirement for firms to grant third-party providers free access to payment user data, which may discourage account data holders from delivering high-quality services. The absence of standardized APIs is also highlighted as a barrier that prevents third-party providers from effectively utilizing this data.