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Belgian retailer Colruyt will test a new European payment card at its stores starting in October, an executive for the card scheme tells CardLine Global. Consumers initially will test the Payfair debit cards at about five stores in Belgium, Dominque Buysschaert, CEO of European Payment Solutions, a Belgium-based transaction processor, tells CardLine Global. European Payment is part of the Payfair scheme, which is one of several European-based card efforts that seek to compete with MasterCard Worldwide and Visa Europe as much of the continent moves toward a common market for electronic payments. The pilot eventually could include at least 10 Colruyt stores, Buysschaert says. He anticipates a Payfair rollout, including in locations outside of Belgium, in 2010. Buysschaert would not say how many cardholders the scheme expects to gain within its first year, but he did say "we have several million cards to be issued potentially." The Payfair business model would enable merchants to pay lower transaction fees compared with those associated with Europe's domestic debit systems and those run by MasterCard and Visa. Among the challenges Payfair has faced, though, is apparent Belgium-bank reluctance to issue the cards, according to CardLine Global sister publication Cards&Payments (CardLine Global, 20 April). For now, consumers taking part in the pilot will receive cards through the retailer, Buysschaert says. Another European card scheme is set for a busy October, too. Monnet, a debit brand backed by large French and German banks, likely will see the creation of a company that would create the scheme's framework, according to comments made this week by a Deutsche Bank AG executive (CardLine Global, 10 July). The push toward new card schemes comes as European regulators work on the Single Euro Payments Area designed to foster more-efficient cross-border payments and pressure MasterCard and Visa to reduce interchange and loosen card-acceptance rules.
