A new European payment project encounters a major problem

The sun sets behind the skyline with the banking district in Frankfurt, Germany on October 18, 2021. REUTERS / Kai Pfaffenbach / File Photo

FRANKFURT, Dec. 23 (Reuters) – Some European banks are delaying their decision to go ahead with a new payment plan that sees itself as a local rival to Mastercard and Visa, the company overseeing the effort said Thursday.

The delay marks a major problem in the so-called European Payments Initiative (EPI), which aims to become a new standard payment method by offering a card to consumers and retailers across Europe.

A majority of shareholders in Belgium, Germany and France want to move the project forward, EPI Interim Company said in a statement posted on its website.

“Other shareholders, such as some Spanish banks, will give their response in January,” he said.

The lockdowns include Germany’s Commerzbank (CBKG.DE) and DZ Bank, people with knowledge of the matter told Reuters. Both lenders are currently considering withdrawing from the project over concerns over the relatively high cost of equity participation for German banks, the sources said.

Unicredit’s German operations (CRDI.MI) are also no longer planning to participate but will consider any future proposals, a spokesperson said.

Last month, the company appealed for public money, saying private donors were unwilling to shell out all the money needed.

Deutsche Bank (DBKGn.DE) and BNP Paribas (BNPP.PA) are among the banks supporting the project.

Reporting by Tom Sims; Editing by Kirsten Donovan and Bernadette Baum

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