Wero is entering the European payments landscape with a clear ambition: to become a unified European payment solution. As a wallet-based payment scheme, it introduces a dedicated consumer-facing payment layer, a branded checkout experience, and a governed ecosystem with defined participation rules.
At the same time, Pay by Bank continues to scale across Europe by building on something fundamentally different: Open Banking infrastructure and real-time bank payment rails.
Both are positioned as the future of European payments. But structurally, they are fundamentally different.
This article explores a key distinction between Wero and Pay by Bank: the difference between a payment scheme and payment infrastructure — and what that means for merchants, PSPs, and platforms.
Wero operates as a consumer wallet-based payment scheme. It introduces a branded European payment method at checkout, combined with a defined ecosystem, clear participation rules, and a central governance model at European level. In addition, it adds a scheme layer between the merchant, PSP, and bank.
Although Wero is scheme agnostic at the infrastructure level and connects to multiple underlying payment rails, this flexibility comes with a requirement: participants must align with a European rulebook and governance structure.
For merchants and PSPs, this fundamentally changes the nature of integration. You are not simply integrating a payment method; you are joining a governed European payment scheme. This introduces structural dependencies, including exposure to scheme fees and potential pricing changes, alignment with centrally defined rules and roadmap, and reliance on ecosystem-wide decisions.
Pay by Bank as infrastructure: direct connectivity without a scheme
Pay by Bank is not a payment scheme. Instead, it is built on Open Banking infrastructure, connecting directly to bank APIs and instant payment rails across Europe.
There is no central scheme layer, no scheme governance model and no mandatory ecosystem participation.
Payments are executed directly between bank accounts, while the user experience is embedded in the merchant or platform interface.
This creates a fundamentally different model:
- Direct bank connectivity instead of scheme mediation
- Programmable payment infrastructure instead of fixed rules
- Flexibility to adapt over time without scheme dependency
Scheme vs infrastructure: control versus conformity
The difference between Wero and Pay by Bank becomes clear when looking at control. With Wero, you conform to a European payment scheme, where governance, pricing, and the roadmap are centrally defined, and where you operate within a controlled ecosystem.
With Pay by Bank:
- You build on payment infrastructure
- You control integration, UX, and orchestration
- You are not tied to a single scheme roadmap
This is not just a technical difference. It directly impacts platform strategy, scalability, and long-term flexibility.
Scheme fees and pricing: long-term impact on margins
Payment schemes introduce a structural cost layer. Wero operates with scheme fees as part of its model, and as seen in card schemes, these fees can evolve over time based on governance decisions. This creates long-term considerations, including exposure to fee increases, limited influence on pricing models, and potential margin pressure as volumes scale.
Pay by Bank operates without a scheme layer. Costs are linked to infrastructure and connectivity rather than scheme participation, resulting in more predictable and transparent pricing. For merchants and platforms, this difference directly impacts the total cost of ownership.
Branded payment layer vs embedded payments
Wero introduces a branded European wallet and payment experience, which brings clear advantages such as strong consumer recognition, a standardised checkout experience, and a unified European payment identity. At the same time, this model means that the payment layer is owned by the scheme, which limits the ability for merchants to differentiate at checkout.
Pay by Bank works differently. Payments are embedded directly within the merchant journey, allowing the user experience to remain fully configurable. Innovation happens at the platform level rather than within a centrally defined scheme. This distinction is particularly relevant for businesses focused on conversion optimisation and customer experience.
Two payment models shaping the future of Europe
Wero and Pay by Bank represent two fundamentally different approaches to European payments.
Wero:
- Wallet-based payment scheme
- Governed European ecosystem
- Branded payment layer
- Scheme fees and rulebook alignment
- Focus on standardisation
Pay by Bank:
- Open Banking payment infrastructure
- No central scheme
- Direct bank connectivity
- No scheme fees
- Focus on flexibility and scalability
Who owns the payment layer?
The core strategic question is simple: do you build on a payment scheme that defines the rules, the user experience, and the economics, or do you build on infrastructure that enables direct connectivity, flexibility, and control over the payment experience? This choice directly impacts platform control, integration strategy, and long-term scalability.
The future of European payments: scheme or infrastructure
Wero represents an important step toward strengthening European payment sovereignty through a unified scheme.
Pay by Bank demonstrates that an alternative model already exists — one based on Open Banking, real-time payments, and direct bank connectivity without introducing a new scheme layer.
At IBANXS, we believe the future of payments is built on infrastructure, not dependency.
Because in payments, control, flexibility, and scalability are not features.
They are the foundation.