Users are looking for alternatives to tech products originating from the United States

In the ever-evolving digital landscape, Europe is making strides towards digital sovereignty. This push is evident in the emergence of new players in the real-time payment service and AI sectors, aiming to challenge established giants.

One such service is Wero, launched by the ING Group in Germany as a PayPal alternative. This innovative platform allows instant money transfers via phone numbers or emails, integrated into banking apps. Wero is part of the European Payments Initiative (EPI) since mid-2024. The service, initially available only to customers of Sparkassen, Volks- and Raiffeisenbanks in Germany, France, and Belgium, is now accessible via a standalone app and has been integrated into the Revolut app. However, no details are provided about what happens if something goes wrong with Wero.

The recent security breach at PayPal, which resulted in fraudulent direct debits slipping through, has led several German banks to halt processing such debits forwarded from PayPal's bank in Luxembourg. This incident underscores the importance of secure payment services, a void that Wero aims to fill.

Meanwhile, in the AI sector, Mistral AI, a French startup specializing in open-source language models and prioritizing privacy, is still largely unknown in Germany. Despite this, Mistral AI, like Wero, represents a European alternative in their respective fields, countering the dominance of US AI companies.

The German government, under the leadership of Federal Chancellor Friedrich Merz, has expressed a goal to minimize risks for the resilience of economies. This aligns with the BSI's dual strategy for digital sovereignty: strengthening the EU market and the domestic digital industry, and ensuring that international products are technically secured to enable sovereign use.

The BSI also advises consumers to consider potential data security and breach handling when choosing a product or service. This sentiment is shared by Florian Glatzner of the Federation of German Consumer Organizations (vzbv), who notes that users often experience a "bad feeling in the pit of their stomach" about these products.

As Europe moves towards digital sovereignty, many consumers are expressing a growing discomfort about using software and hardware from China and the USA. This discomfort, coupled with the push for European alternatives, is driving the adoption of European-based services like neobank Revolut and Wero. These services emphasize the "Made in Europe" argument, positioning themselves as alternatives to US-based online payment services.

A Bitkom survey reveals that 60% of respondents want Germany to become less dependent on US AI companies, and 68% believe Germany is too dependent on the USA and China in the field of artificial intelligence. This survey also shows that two-thirds (67%) of people in Germany aged 16 and above use generative AI at least occasionally, with usage largely limited to the three leading providers: OpenAI, Microsoft, and Google.

In a bid to further strengthen digital sovereignty, France, Germany, and the EU Commission will host a summit on digital sovereignty in Berlin on November 18. This summit is expected to provide insights into the future of digital sovereignty in Europe and the role of services like Wero and Mistral AI in this landscape.

Cognitive dissonance is a factor that prevents users from changing their behavior despite their discomfort. As Europe continues to push for digital sovereignty, it remains to be seen how this dissonance will be addressed and whether users will shift towards European alternatives like Wero and Mistral AI.

Users are looking for alternatives to tech products originating from the United States