Can New Online Payment Provider Wero Challenge PayPal?

PayPal is currently still the No. 1 online payment solution

Figures for Germany’s ecommerce sector compiled by the EHI Retail Institute in May 2026 confirm that its online payment services market remains dominated by one top player: PayPal. According to the EHI’s “Online Payment 2026” survey, 28.7 percent of sales are processed via PayPal. This is followed by purchase on account at 26.1 percent, direct debit at 14.4 percent, and credit and debit cards at 13.7 percent. Apple Pay is explicitly named for the first time in the regular survey, with the solution – well-established among Apple users – accounting for 1.3 percent of sales.

Now there’s a new provider looking to gain a foothold in the online payment market: Wero.

Wero: European payment service provider for online shops and P2P

Wero is more than just a new online payment provider. The project is part of Europe’s effort to become less dependent on US corporations when it comes to digital transactions by building its own payment infrastructure. With this goal in mind, the European Payments Initiative (EPI) has spent the last few years developing an alternative mobile payment service.

Initially, the service was only capable of sending money between individuals quickly and easily: A cell phone number or email address is all that’s needed to transfer money between Wero customers. Now, Wero is expanding into ecommerce and positioning itself in the market as a European alternative to established payment providers.

What are the advantages of Wero for retailers?

Wero offers multiple benefits to retailers who integrate its online payment system into their web shops.

These include:

• Lower transaction costs: Fees for transactions made through Wero typically amount to around 0.77 percent of the sales price, undercutting both PayPal and standard credit card processing charges.
• Instant liquidity: Since Wero makes real-time transfers via the SEPA instant payments system, retailers receive the funds immediately, improving their cash flow.
• High data protection standards: As a European project, Wero promises providers and users the strongest data protection standards. With this USP, Wero also aims to set itself apart from its US competitors. However, as of May 2026, Wero’s data is still hosted on US-based Amazon Web Services (AWS) infrastructure, which – at least in theory – makes it more vulnerable to being accessed from the USA.

A further goal of Wero is to help strengthen Europe’s position as a leader in technical standards and value creation within the payments industry.

Even though Wero still has a long way to go before it can rival the market power of established providers, retailers would be wise to keep an eye on its development. Numerous European banks actively support the initiative, giving Wero access to millions of potential users. There’s also a strategic aspect to consider: Many retailers want to reduce their dependence on individual platforms and payment providers, and Wero could offer an additional choice that would expand the range of checkout options in the future.

Where can customers pay online with Wero?

Wero is currently expanding its ecommerce services incrementally. So far, however, only a small number of well-known stores and platforms offer Wero as a payment method or have announced plans to introduce it:

• Eventim
• Lidl
• Hornbach
• Rossmann
• Decathlon
• Wolt
• a&o Hostels

This list also highlights Wero’s biggest challenge – despite its initial lineup of high-profile partners, adoption by retailers has been limited so far. The provider is still some way off achieving widespread acceptance in the ecommerce sector.

Good to know: Wero is already available in Germany, France, and Belgium. The Netherlands and Luxembourg are set to follow soon.

POS rollout will be Wero’s real test

The next step in Wero’s expansion will take it from the world of ecommerce into brick-and-mortar retail. Technical implementation involves the use of dynamic QR codes that customers scan to make payments. From a strategic perspective, Wero is focusing on a trend that’s sweeping the entire commerce market – the fusion of online and offline experiences. The sales channel itself isn’t really important to consumers these days. What matters is a smooth checkout process. Wero’s long-term success may therefore depend less on the technology itself and more on its ability to achieve seamless omnichannel integration.

Trustpilot score points to negative customer feedback so far

It’s clear that Wero still has a lot of work to do – and not just in terms of winning over retail partners. As of June 2026, the Wero Wallet has a low score of 1.3 (unsatisfactory) on the Trustpilot review platform.

However, ratings of this kind should be treated with caution. Consumers most commonly leave feedback about payment service providers on review platforms when something has gone wrong. Nevertheless, the figures show that there are still challenges ahead for Wero when it comes to building credibility and user satisfaction. After all, payment service providers require consumers to grant them access to their bank accounts, so trust and a positive user experience are critical to their success.

Investment required: It’s a tough market for new online payment providers

The more stores that offer Wero as a payment option, the more likely users are to adopt it. At the same time, integrating the service is only worthwhile for retailers if enough customers use it. That’s the exact dilemma Wero finds itself in right now.

However, the EPI is investing heavily in Wero’s expansion and aims to establish the service as an additional option in the European payment market. These efforts are already bearing fruit: Wero had around 3 million users in Germany in January 2026, but by May the figure had risen to 7.2 million. By the end of the year, user numbers are expected to reach 12 million.

It remains to be seen what kind of foothold Wero will gain in the market as time goes by. What’s already relevant for retailers, however, is that Wero’s arrival introduces another player to the payment landscape – one that could increase competition and create new checkout options.

Retailers therefore have more to consider than just whether customers want to pay with Wero today. The more important question is what role European payment infrastructures will play in commerce in the future.

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