New European payments project hits major snag

FRANKFURT, Dec 23 (Reuters) - Some European banks are holding off on a decision to move forward with a new payments project that is intended be a home-grown rival to Mastercard and Visa, the company overseeing the effort said on Thursday.

The delay marks a major snag in the so-called European Payments Initiative (EPI), which aims to become a new standard means of payment by offering a card for consumers and retailers across Europe.

A majority of the shareholders in Belgium, Germany and France want to move ahead with the project, EPI Interim Company said in a statement on its website.

"Other shareholders, such as some Spanish banks, will provide their answer in January," it said.

Holdouts include Germany's Commerzbank (CBKG.DE), opens new taband DZ Bank, people with knowledge of the matter told Reuters. The two lenders are currently planning to exit the project on concerns over a relatively high cost of equity participation for German banks, the sources said.

Unicredit's (CRDI.MI), opens new tab German operations are also no longer planning to participate but will examine any future proposals, a spokesperson said.

Last month, the venture appealed for public money, opens new tab, saying private backers were not prepared to stump up all the cash needed.

Deutsche Bank (DBKGn.DE), opens new tab and BNP Paribas (BNPP.PA), opens new tab have been among the banks backing the project.