Christine Lagarde: The European Union Needs to Create Its Own Alternative to Visa, Mastercard

EXCERPT:

LAGARDE: "Whether you use a card or whether you use a phone, typically, it goes through Visa, MasterCard, PayPal, Alipay. Where are all those coming from? Well, either the U.S. or China, and the whole sort of infrastructure mechanism that allows for the payment, credit and debit, is not a European solution."

HOST: "I'm a bit concerned about this. I didn’t realize this, because it means that every time I use my credit card or use my phone, that information about me is leaving the European Union and going to the United States. I thought that was not permitted."

LAGARDE: "I’m sure they do that, you know, in compliance with European regulations. But yes, that is — that is the point, which I — which is why I think that we have to reduce that vulnerability and make sure that there is a European offer that is available just in case. You never know."