Visa’s Olympics Monopoly Exposes Europe’s Payment Challenges

The Milano Cortina Games have spotlighted a significant issue in Europe: reliance on foreign payment providers, particularly Visa. This situation was evident at the official Olympic stores, where Visa is the exclusive card provider due to a partnership with the International Olympic Committee that began in 1986 and extends to 2032.

Visa’s Monopoly on Payments

At the Games, signs prominently display, “Card payment? We accept only Visa.” Organizers provided users with accessibility options, including prepaid cards. This raises questions about the broader implications for European consumers, especially in the context of cash usage declining.

Challenges to Cash and Future Solutions

As people embrace digital payments, cash’s prevalence in transactions is waning. For instance, surveys indicate that only one-sixth of payments at Olympic stores were made in cash. Data from the European Central Bank reveals that international card schemes, including Visa and Mastercard, account for approximately two-thirds of transactions in the euro area.

• Visa’s partnership: Exclusive payment provider since 1986.
• Digital euro: Expected launch in 2029.
• Cash transactions: Decreasing visibility at Olympic events.

European Central Bank’s Digital Euro Initiative

The European Central Bank (ECB) aims to mitigate dependency on foreign payment companies. In December, the EU Council endorsed the digital euro project, emphasizing economic security and financial inclusivity. The digital euro will allow users to make payments anywhere in the euro area.

However, legal frameworks for its issuance remain stalled due to concerns over potential impacts on commercial banks. ECB officials stress that central bank control over money is crucial to maintaining economic sovereignty.

Cash Acceptance at the Games

Despite concerns about declining cash use, Olympic venues recognized the need for options. Officials installed ATMs and ensured cash could be withdrawn. Esselunga, a grocery chain, announced it would start accepting cash at the Olympic press center after an initial period of card-only payments.

• ATMs: Installed for cash withdrawals at the Games.
• Esselunga’s update: Cash payments accepted starting Monday.

As the Olympics continue, the balance between cash and digital payments remains crucial. Policymakers need to address these challenges head-on, ensuring the integration of new payment methods does not leave anyone behind.