The transition from iDEAL to Wero is an important step in the European payments landscape and is largely framed as progress: more European scale, more alignment, and a stronger alternative to global payment schemes. But for PSPs, the question is not whether this shift is necessary. The real question is: What happens to control, flexibility and differentiation when the ecosystem is more standardized?
From open payment models to scheme-driven ones
At its core, the shift from iDEAL to Wero is not just a migration. It represents a move from a relatively open model towards a more scheme-driven approach. This distinction matters, because it directly impacts how much control PSPs retain over their payment flows.
A model such as Pay by Bank, which is built on open banking standards, connects directly to bank accounts via APIs. This allows PSPs to design payment flows within their own infrastructure and user experience. A scheme-based model such as Wero, on the other hand, introduces defined rules, governance and, importantly, a stronger dependency on a centralized model.
Standardization versus flexibility
Wero’s strength lies in standardization. It enables scale across Europe and creates a consistent payment experience. But standardization also comes with trade-offs.
PSPs may find it harder to:
- differentiate their offering
- customize integrations
- build value-added services around the payment flow
Pay by Bank takes a different approach. Because it is scheme-agnostic and built on open infrastructure, it allows PSPs to remain flexible and innovate on top of the payment layer. This makes it easier to adapt to different merchant needs and market dynamics.
Control over the user experience
One of the key differences lies in the checkout experience. With Pay by Bank, PSPs can fully integrate payments into their own platform and user journey. There is no requirement for a specific wallet or external interface.
In contrast, while Wero’s more wallet-based model can standardize the user experience, it also limits the extent to which PSPs can tailor or optimize the checkout flow. For PSPs that differentiate through UX, this is more than a minor detail. It is a strategic consideration.
Dependency and strategic positioning
Another key question is dependency. By definition, a scheme introduces a level of dependency on its governance, roadmap and pricing structures. Wero is no exception. PSPs operating within a scheme environment may have less influence over how the product evolves, and how value is distributed across the chain.
Pay by Bank shifts that dynamic. By connecting directly to bank infrastructure, PSPs reduce reliance on a single scheme and gain more control over how payments are orchestrated. This creates a more flexible and resilient position in a changing market.
Pricing and margin predictability
The difference in models also becomes visible in pricing. Pay by Bank typically operates with a fixed fee per transaction, offering a high level of predictability in margins.
Scheme-based models like Wero are more likely to follow percentage-based pricing structures. This introduces variability and potential exposure to future fee increases. For PSPs operating at scale, this is not just a cost consideration. It directly affects long-term margin stability.
Availability and time to market
There is also a practical dimension. Pay by Bank is already widely available across many European banks today. Wero, by contrast, is still in a phased rollout.
This means that PSPs looking to expand across markets may currently find more immediate coverage and flexibility through Pay by Bank.
A note on chargebacks
It is important to recognize that Pay by Bank and scheme-based payments differ in how they handle chargebacks.
Traditional card-style chargebacks are typically part of scheme-based models like Wero.
Pay by Bank operates differently, which may require PSPs to rethink certain risk, refund and dispute processes. This is not necessarily a disadvantage, but it is a difference that needs to be taken into account.
Not either/or but a strategic choice
The transition to Wero not only brings scale, alignment and a stronger European position, but also changes the role of PSPs within the ecosystem.
The real question is therefore not simply ‘Wero or Pay by Bank?’, but a strategic consideration: ‘How can you maintain control, flexibility and margin predictability in a more standardized environment?’
A more resilient payment strategy
Combining scheme-based solutions like Wero with infrastructure-based approaches like Pay by Bank creates a more resilient and futureproof payment strategy. Then, PSPs are better positioned to:
- retain control over the user experience
- differentiate their offering
- manage dependencies
- build more predictable business models
The role of IBANXS
IBANXS supports PSPs in navigating this shift. By providing scalable Pay by Bank infrastructure across Europe, IBANXS enables them to connect directly to bank rails, without being locked into a single scheme.
This allows PSPs to:
- maintain flexibility in how they design payment flows
- operate across markets with consistent infrastructure
- build differentiated services on top of open banking
Conclusion
Wero represents progress towards a more unified European payments landscape. But progress comes with trade-offs. As payments become more standardized, PSPs can gain scale, but risk losing flexibility, influence and control.
Pay by Bank offers a complementary path – not as a replacement, but as a way to stay flexible, reduce dependency and build a more resilient position in the evolving payments ecosystem. In a landscape that is becoming more centralized, IBANXS helps PSPs retain control.