Users explore non-US tech brands amidst American product preference

In the digital landscape, European competitors like Revolut and Wero are making a strong case as "Made in Europe" alternatives to US-based online payment giants. This shift is driven by a growing desire for digital resilience and independence, as evident in the German government's aim to minimize risks in the digital sphere.

According to a Bitkom survey, 60% of respondents want Germany to become less dependent on US AI companies, a sentiment echoed by 68% who believe the country is too reliant on both the USA and China in the field of artificial intelligence. This discomfort extends to software and hardware from China and the USA, with many users expressing unease.

In response, the German equivalent, Aleph Alpha, is focusing on AI solutions tailored for corporate and public sector clients that must adhere to stringent data protection requirements. Meanwhile, Wero, a mobile wallet used by about 1.8 million active users, primarily supports private money transfers between friends and family, requiring both parties to have accounts at participating banks.

The recent PayPal security systems failure, which allowed fraudulent direct debits to go through, has highlighted the importance of data security. The Federal Office for Information Security (BSI) advises consumers to consider data security when choosing a product or service, and to inquire about the provider's security measures and contact options in case of data breaches.

As for Wero, it allows users to send money in real-time to a phone number or email address without the need for the recipient's bank account number. It has also been integrated by ING and Revolut, and is now available as a standalone app.

The digital sovereignty debate is not limited to Germany. France, Germany, and the EU Commission will host a summit on digital sovereignty in Berlin on November 18. Meanwhile, the French AI startup Mistral AI (Le Chat), specializing in open-source language models and privacy, remains largely unknown in Germany.

However, consumer behavior can sometimes be influenced by cognitive dissonance, where individuals feel uncomfortable with products but do not immediately change their behaviour. This is evident in the case of Microsoft's decision to end free support for Windows 10 on October 14, causing consumer frustration. After this date, Windows 10 users will need to pay for security updates or risk security vulnerabilities.

Moreover, the minimum requirements for Windows 11 are so high that many devices will need to be replaced or users will need to switch to a different operating system. This shift away from Windows 10 could potentially open up opportunities for alternative operating systems and digital payment solutions.

Users who split restaurant bills via the Revolut app and use the Vivaldi browser on their computer are seen as eccentric outsiders by some. However, as the digital landscape continues to evolve, such behaviours may become more mainstream as consumers seek alternatives to traditional payment methods and operating systems.