at the location of the purchase or interaction – so - called point - ofinteraction, or poi, payments. in the view of the governing council, these market initiatives would have to fulfil five key objectives. 1. pan - european reach and customer experience customers should be able to make poi payments throughout the entire european union just as efficiently and safely as in their home country. to this end, pan - european reach with wide merchant acceptance and a sound and efficient governance ( see below ) is needed to achieve critical mass, which is necessary for a network industry, and to fully exploit the benefits of the single market. scale will drive consumer adoption and trust, which is pivotal in e - commerce. 2. convenient and cost - efficient a european retail payments solution will only be accepted if it fully addresses user needs and demands. so the solution needs to enable an easy, flexible, secure and user - friendly payment experience for both consumers and merchants. this requires that payments can be performed using different tools and instruments, such as payment cards, mobile phones, wearables and instant payments, as well through other channels and technologies, such as near - field communication. relying on previously unavailable instant payments technology could be the key to designing a solution that is more efficient than existing ones. subsequent cost savings for merchants will eventually lower consumer prices and benefit every citizen. 3. safety and security 2 / 4 bis central bankers'speeches a new european payments solution must comply with all relevant legal and regulatory requirements. it should provide the highest levels of fraud prevention and offer consumer protection with robust complaint and refund procedures. 5 4. european identity and governance a common brand and logo should be adopted to foster european identity. a european governance structure could enable european payment stakeholders to have a direct influence on the strategic direction and business models. these stakeholders should be incentivised to design a payment solution under their governance that meets the needs of european customers. 5. global acceptance to fully meet the needs of end users, a new european solution should also be accessible to merchants based outside the eu, which will reinforce economies of scale and domestic adoption. global acceptance should therefore be a long - term goal. the need for a pan - european market - led solution these five key objectives form the heart of the eurosystem ’ s retail payments strategy. they provide a conceptual vision that should be fleshed out by the private sector. the eurosystem therefore welcomes the strategic initiative of a number of major european banks

a transformation. rapid technological progress, regulatory reforms and rising cross - industry initiatives, in particular by large global digital firms, have led to unprecedented dynamics and are putting established banks and payment service providers under considerable pressure. in this environment, there are clear signs that europe is at risk of losing its economic edge. country - specific solutions lack the necessary size and scale, and national fragmentation has paralysed competition and stifled innovation on the pan - european level. in the worst case scenario, this may endanger the autonomy of european payment systems. the vision of an industry - led, pan - european retail payment solution is therefore at the heart of the eurosystem ’ s retail payment strategy that i have outlined this morning. a pan - european strategy that facilitates instant, secure and inexpensive payments – both online and in brick and mortar stores – has the potential to make up lost ground and meet the rising needs of consumers for efficient cross - border payments. better affordability, quality and choice will also promote financial inclusion. the eurosystem therefore welcomes the recent initiative of european banks to join forces and envisage a payment solution for the euro area as a whole. thank you. 1 see also cœure, b. ( 2019 ), “ european capital markets : priorities and challenges ”, dinner remarks at the international swaps and derivatives association, frankfurt am main, 25 june. 2 see g7 working group on stablecoins ( 2019 ), investigating the impact of global stablecoins, october. 3 see juncker, j. c. ( 2018 ), “ the hour of european sovereignty ”, state of the union address 2018 ; european commission ( 2018 ), “ towards a stronger international role of the euro ”, european commission contribution to the european council and the euro summit, 5 december ; and european council ( 2018 ), “ statement of the euro summit ”, 14 december. 4 see cœure, b. ( 2019 ), “ the euro ’ s global role in a changing world : a monetary policy perspective ”, speech at the council on foreign relations, new york city, 15 february. 5 in line with strong customer authentication ( sca ) under the revised payment services directive ( psd2 ). 4 / 4 bis central bankers'speeches